Two weeks before the Rosh Hashana (Jewish New Year) holiday, an investigation by the Center for Consumer Research commissioned by "Globes" has found that independent supermarket Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) offers the lowest prices in the cities where it operates. The survey compared prices for 30 products at 12 supermarkets in three locations: Talpiot in Jerusalem; the Holon industrial zone; and the Admiralty in Haifa. The survey was conducted on two dates: last week and on Monday.
The supermarkets in the survey were the two national chains Shufersal Ltd. (TASE:SAE) Shufersal Deal, Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI) brand Mega Bull, Rami Levy in Jerusalem and Haifa; and independent chains Yainot BitanHezi Hinam in Holon, and Zim Direct Marketing Ltd. (TASE: ZMMR) brand Kimat Chinam in Haifa.
Early this week, most supermarket chains lowered prices for many goods through holiday discounts by up to 50%, compared with prices the week before.
The survey found major differences in prices between supermarkets, from NIS 334 for the 30 products at Rami Levy in Haifa to NIS 516 for the same products at Mega Bull in Holon.
The strength of competition at shopping areas dictates prices, so prices are the same between supermarkets of the same chain. Differences in prices were wider until a short time ago, but have since narrowed. Center for Consumer Research director David Idan says that supermarkets generally narrowed the difference by raising prices.
This is policy issue, independent chains Hezi Hinam, Kimat Chinam, and Yainot Bitan say that their prices are uniform at all stores. Rami Levy says that uniformity is its general policy, but that stores can offer specific discounts in response to discounts by local competitors, especially for meat and vegetables, which are sold by weight.
In Talpiot Jerusalem, the cost of the 30 products in the survey was NIS 336 at Rami Levy, NIS 426 at Shufersal Deal, and NIS 476 at Mega Bull. The price of a fresh whole chicken was NIS 7.90 per kilogram at Rami Levy, NIS 8.90 at Shufersal Deal, and NIS 15 at Mega Bull; the price of an 800-gram bag of frozen peas and carrots was NIS 9 at Rami Levy, NIS 15 at Shufersal Deal, and NIS 16 at Mega Bull; the price of a 500-gram jar of honey was NIS 20 at Rami Levy, NIS 27.90 at Shufersal Deal, and NIS 28 at Mega Bull; the price of a jar of Taster's Choice instant coffee was NIS 26 at Rami Levy, NIS 28 at Shufersal Deal, and NIS 32 at Mega Bull; and the price of a kilo of tomatoes was NIS 6 at Rami Levy and NIS 7 at both Shufersal Deal and Mega Bull.
In the Admiralty in Haifa, the cost of the 30 products in the survey was NIS 334 at Rami Levy, NIS 371 at Kimat Chinam and NIS 466 at Shufersal Deal, and NIS 476 at Mega Bull.
At the Holon Industrial zone, the cost of the 30 products in the survey was NIS 516 at Hezi Hinam, NIS 397at Yainot Bitan and NIS 433 at Shufersal Deal, and NIS 392 at Mega Bull.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012