Dutch retailer SPAR to enter Israeli market amid soaring living costs

Spar

25/07/2022 09:37

By Steven Scheer
    JERUSALEM, July 25 (Reuters) - Israeli businessman Amit Zeev
said he has signed a preliminary deal to bring Dutch food retail
chain SPAR to Israel, a move that would create more competition
and potentially lower food costs that have soared in recent
months.
    Zeev was most recently chief executive of Yeinot Bitan, one
of Israel's largest supermarket chains. He said he signed a
letter of intent with SPAR and aims to bring in more global
products "at a more affordable price point than is currently
available in Israel".
    Later this year, French retailer Carrefour  CARR.PA  is
expected to enter the Israeli market. Under a deal made in
March, 150 of Yeinot Bitan's branches will be converted to
Carrefour.  urn:newsml:reuters.com:*:nFWN2V71Y5
    Zeev is in the process of a similar plan and is speaking
with existing supermarket chains to convert them to SPAR, which
has 13,600 stores in 48 countries.
    Cost of living is expected to take centre stage in Israel's
general election on Nov. 1. Annual inflation is 4.4%, far lower
than most other Western countries, but Israelis have seen prices
of most basic goods jump, while the Bank of Israel is raising
interest rates aggressively to battle price pressures.
    The government has won a minor victory by convincing
retailers to delay a planned 20% hike of supervised bread
prices.
    Yair Lapid, the prime minister in Israel's caretaker
government, told cabinet ministers on Sunday that rising living
costs are a "national scourge and we are determined to deal with
it."
    "It cannot be there will be a wealthy country here with
people who cannot finish the month," he said.
    Lapid added that he expects Carrefour's entry to bring big
discounts. "We expect other major companies to follow in its
wake," he said.
    "From here I say to all the players in the market: Whoever
raises prices irresponsibly is liable to get up in the morning
and find themselves with unexpected competition. This government
believes in competition and opening markets and it will not
hesitate to act."   
    
    

 (Reporting by Steven Scheer; editing by David Evans)
 ((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
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