Shufersal to launch new chain for haredim

The chain, Yesh Behesed, will have eight supermarkets.

Sources inform ''Globes'' that Shufersal Ltd. (TASE:SAE) is planning to launch a new supermarket chain, Yesh Behesed, which will target haredi (ultra-orthodox) communities. Seven of the supermarkets will be Yesh brand discount supermarkets, which will be converted to the new format, and one new store will be opened in Bnei Brak.

At launch, Yesh Behesed will receive suppliers' discounts for three to six months, which will help it against competitors. Supermarkets anchor clauses in suppliers' discounts in contracts with all their suppliers granted newly opened or rebranded supermarkets discounts for the period stipulated in the contract.

"Shufersal is making this move to get money from suppliers. It is simply dipping its hand into the suppliers' pockets, and we can't do anything about it. The supermarkets are suffering from low profit margins, and who are they taking money from? The suppliers," a large supplier told "Globes".

Shufersal will convert supermarkets in Bnei Brak to the Yesh Behesed brand, and add one more store in the city. Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) and Osher Ad are competing in Bnei Brak, and Shufersal wants to get an edge in the haredi city.

Shufersal also plans to convert supermarkets in Beerot Yitzhak, Jerusalem, Betar Illit, Modi'in Illit, and Beit Shemesh to the Yesh Behesed brand.

Published by Globes [online], Israel business news - - on June 25, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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