Parallel Import Vacuum Cleaners Face Activation Issues in Israel, Retailers Expand Discounted Imports

A recent wave of problems has emerged with parallel-imported Dreamy X60 ULTRA vacuum cleaners in Israel, as customers discovered the devices could not be activated due to software restrictions. The robots’ software versions, intended for other markets, blocked operation in Israel, displaying a message directing users to contact the original seller. Dreamy’s global headquarters demanded the parallel importer, Tech Masters, pay 80,000 shekels (about $26,400) to unlock the app for Israeli use. Tech Masters agreed to pay but is still reviewing legal implications. Due to the issue, the authorized importer Oshurad halted sales of 860 units and refunded customers. Dreamy denied any manipulation, attributing the problem to software variations across countries.

This is not the first time such issues occurred; similar cases arose in early 2026 and three months ago but were resolved quickly. This time, the situation is more complex, raising questions about who will bear the costs of fixing the problem and potential legal claims.

In other retail news, Ronen Ganon, a real estate entrepreneur from Safed, plans to revolutionize the Ace chain by introducing dry food departments and doubling its branches to 50 within a year. His vision is to transform Ace into an Israeli version of Costco, focusing on a limited range of basic products at low prices, leveraging his purchasing power. Ganon also intends to merge all Multi Retail holdings, including Ace, Beitili, Urban, and Auto Depot, with 50% of the Zol Stock chain, aiming to boost annual sales to approximately 1.7 billion shekels.

Meanwhile, the trend of parallel imports continues to expand in Israeli retail. Following the introduction of the iPhone 17 by Oshurad and Victory, and other products by Rami Levy and Yohananof, Victory recently began selling Asics Gel NYC shoes at 399 shekels, significantly cheaper than the official importer’s prices of 720-800 shekels. Despite these efforts, Victory’s revenues declined by 0.7% in Q2 2026 excluding Gaza Strip sales, with a 7.4% drop in same-store sales compared to Q2 2025. However, gross profit margins rose to 24.7%, and the chain expects further efficiency gains by employing around 600 foreign workers.

These developments highlight ongoing challenges and shifts in Israel’s consumer electronics and retail sectors, with legal, financial, and competitive implications unfolding in the coming months.