Retail chains Sensor and Shekem Electric are conducting negotiations to merge their activities. According to estimates, a new company will be formed, held jointly by both appliance retail chains.
Shekem Electric is owned by Shekem, which is controlled by Elco Holdings. The chain includes 23 stores, fourteen of which are independent, while the rest are part of Shekem Gallery branches. The Sensor chain is held by the Eden group (67%) and Electra, part of the Elco Group. The chain consists of 25 stores all over the country. The merger would make Elco Holdings the owner of the largest appliance retail chain in the country.
Industry concerns stated that currently there is competition between the two appliance chains, and that merging their activities could result in price dictation in the market. Nevertheless, the volume of activity of both chains does not exceed 20% of the industry, so there are no fears that the Restraint of Trade Commissioner could reject the merger.
Sensor and Shekem Electric are profitable chains and their sales turnover is estimated at NIS 650 million. Of that, Sensor’s sales volume is estimated at NIS 350 million. Most of the Eden group’s activities, controlled by Yitzhak Eden, is concentrated in retail sales, although the company also has five companies that import electronic appliances from the Far East and Europe.
Both Sensor general manager Yitzhak Eden and the Shekem spokesman refused to comment on the report.