The “Yediot Ahronot” Hebrew daily reports that the first-ever delegation of senior executives from US retail chain Wal-Mart Stores (NYSE: WMT) has arrived in Israel. Wal-Mart is the world’s largest supermarket chain, with a 2003 sales turnover of $244.5 billion. The Wal-Mart VP manager responsible for the Middle East, Turkey, Africa, and Pakistan headed the delegation.
On this, his first visit to Israel, the delegation head was accompanied by administrative personnel from Wal-Mart’s regional office in Turkey. Industry sources attach great importance to the visit, and regard it as a positive turnaround. “Since the intifada began, foreign retain chain purchasing agents have stopped coming to Israel, which has significantly reduced their purchases in Israel. The chains are now returning to Israel,” one source said.
Sites visited by the delegation included the Elite Industries (TASE:ELEI1; ELEI5) candy factory in Upper Nazareth; the Wardinon Textile (TASE:WRDT) bathmat factory; the Royal Night plant, which manufactures bed linen for export; and the Keter Plastic factory. Wal-Mart has bought $120 million of underwear to date from Delta Galil Industries (Nasdaq: DELT; TASE:DELT), mostly through Delta Galil’s overseas subsidiaries.
Uri Grebenau, the owner and president of Shira Trading, one of the largest purchasing agencies for foreign retain chains, is hosting the delegation. “After three tough years, we’re starting to see purchasing agents here again,” Grebenau said.
Published by Globes [online] - www.globes.co.il - on January 15, 2004