”Globes” has learned that the Hamashbir Lazarchan chain is about to exit its electrical appliance and electronics business, while focusing on fashion and cosmetics.
The chain’s new strategy will force Sakal, which operates Hamashbir Lazarchan’s electrical and electronics department, to find alternative marketing channels, in addition to its Sakal chain and duty-free stores.
Hamashbir Lazarchan is the second largest concern in the electronics chain market, with a turnover of NIS 200 million per year. The leading concern is Shekem Electric, controlled by Gershon Salkind, with an annual turnover of NIS 600 million. The total electrical appliances and electronics market is estimated at NIS 3.5 billion per year.
Last week, Hamashbir Lazarchan completed its acquisition of Shekem Gallery from Salkind and Jack Benichou for $3.75 million.
Hamashbir Lazarchan general manager Yaakov Ginzburg told “Globes”, “ We will have to be daring and make a decision to change the chain’s product mix, and it will come. It is a risky move, because while you know what you are getting rid of, you don’t know what you are getting.”
Ginzburg is trying to make Hamashbir Lazarchan the leading chain in clothing, footwear, and fashion. “Hamashbir Lazarchan could be Israel’s fashion showcase, from head to foot. A strategy like this requires space, so we’ll have to leave other fields, even if it is a hard decision.”
As published in “Globes”, the chain negotiated with British clothing chain Debenhams for the sale of 25% of the Hamashbir Lazarchan-Gallery chain at a value of $120 million. Due to the security situation, however, the British chain suspended proceedings until January 2001.
The sales turnover of the Hamashbir Lazarchan-Gallery chain totals NIS 2 billion per year.
Published by Israel's Business Arena on November 16, 2000