The first five stores selling Marks & Spencer products in Israel will open this July, after Golf-Kitan received the brand's Israeli franchise. The stores will open in the Kfar Sava Arim Mall, the Haifa Kiryon Mall, The Beersheva Big Mall, and in the Golf-Kitan store in Hadar Yosef, Tel Aviv. The new concept is a store within a store, or a store next to an existing Golf-Kitan store. Golf-Kitan will import the products and make the investments, while Marks & Spencer will deal with product penetration and the retail aspect. The ubiquitous green bag will also not remain the same color. From now on, there will be four types of bags in various shades of green, each for a different department.
The man chosen to manage the chain's renewed activity in Israel is Richard Sheldon, 34, who has worked ten years in the company, specializing in international activity in Portugal and the Czech Republic. He is the company's only representative in Israel, and is working opposite a group focusing on the opening of international shops in London.
"Globes": Why didn't you succeed the previous time?
Richard Sheldon: "In the past, the two companies, HaMashbir Lazarchan and Marks & Spencer, worked together. When we saw that they weren't managing to make back the investment, a parting of the ways was agreed. We didn't want absolute closure. We wanted a clean break and a fresh start for renewing activity. Since then the situation has changed, and customs duties have fallen by a significant 12%. This allows us to be more attractive, with prices more competitive in the Israeli market. It was a hard decision to leave. We had a commitment to support the Israeli textile industry. We planned to return, and now we're here."
What makes you think you'll be more successful this time?
"We conducted a comprehensive market survey, and discovered that awareness of the Marks & Spencer brand is very great in Israel. We got a very positive feedback on the products, and their penetration will be done pragmatically this time. Initially this will be done by opening shops for women's and men's underwear. We also have Golf-Kitan, which will guide us in these decisions. The Israeli market is important for us, and we chose our new partner carefully."
How will you solve the problem of the gap between British and Israeli prices?
"The prices will be competitive, and those buying our products will get their money's worth. It is important for us to be fashionable and up-to-date. In the past, the products were only for the British market. Now we have a widely varied selection. In addition, we conducted a survey comparing our prices to those of other products in the Israeli market. Our products had prices very similar to those in Israel. The quality of our products is added value."
Why should Israelis buy your products here at high prices, when they can buy the same products at lower prices from companies that manufacture for you, like Polgat?
"The products manufactured by Israeli companies for us will be exclusively for Marks & Spencer, and will be unavailable in Israeli shops."
Why did you choose Golf-Kitan?
"Golf-Kitan presented a strong case, with a great deal of experience in operating 140 stores around the country. Their offer was flexible and innovative, and they were interested in hearing what customers want. We were captivated by their professionalism and the freshness of their work."
Have you ever worked with Israelis?
"No, but I've worked overseas a number of years. I'm familiar with this environment. I didn't come to tell Israelis that Marks & Spencer does business the best way. I'll listen to local advice, and I hope they'll also listen to advice I can give from my experience in the company and in the international realm."
Marks & Spencer itself has been shaken up over the past year. How will that affect your activity in Israel?
"The company has undergone changes, and the stores are filled with customers. We are trying to listen to the customers. The successful products continue to be the innovative ones, and the freshness that customers will see in Israel will give evidence of the change we've been through."
Will you adopt a policy of money back for products in Israel also?
"The policy of returning products for money will continue as in the rest of the world. I'm working on it with Golf-Kitan. I'm aware that this is unique. We were the first to do it in Britain, and then others imitated us. That's positive."
Published by Israel's Business Arena on May 30, 2000