IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Super-Sol Ltd. (TASE:SAE;Pink Sheets:SSLTF) yesterday dedicated it the first store of its new "Yesh" low-cost supermarket chain. The official launch will be on August 19. The company invested NIS 70 million in the new chain.
The launch will be accompanied by a NIS 7 million ad campaign by Adler Chomsky Marketing Communication Ltd. and Bolton Potential Management Ltd. under the slogan "We have everything cheap".
Yesh is being set up on the foundations of Super-Sol's Zol Po ("Cheap Here") and Elef chains. Super-Sol recently completed its acquisition of Elef, which operates in the haredi (ultra-orthodox) communities. The rebranding of the stores will give Super-Sol suppliers' discounts, which should boost the stores' sales and profits.
Yesh will have a nationwide deployment with a focus on the haredi and Arab communities, as well as the poor. The current chains have 48 stores, including four that were recently opened, and Super-Sol plans to add eight more by year-end.
Super-Sol CEO Effie Rosenhause said that the company would continue its expansion. "Don’t be surprise if, in three or four years, you'll see Super-Sol's sales space grow because we'll expand in all formats. Every Israeli customer will be within a seven-minute drive from a Super-Sol store. There are many places where we have no presence, such as in Maaleh Adumim, and we'll go there."
Rosenhause added, "We'll gradually enter the Arab sector. We opened a store in Rahat, which says something."
Published by Globes [online], Israel business news - www.globes-online.com - on August 13, 2008
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