Sources inform “Globes” that consumer appliances and electronics chain Mahsanei Hashmal is about to expand its retail activities into Europe. The chains owners are considering establishing its first overseas branch in markets close to Israel, where they see growth potential. Mahsanei Hashmal already has 16 stores in Israel.
Mahsanei Hashmal's turnover in Israel exceeds NIS 300 million. It opens an average of one store year, with each store covering an average of 600 sq.m. The stores are set up outside city centers, with an emphasis on low rent and operating expenses.
Mahsanei Hashmal positions itself as a discount low-end appliance retailer, with a focus on very competitive prices and high-quality service. The chain recently began selling flat television screen and home cinema systems, categories that by definition are directed at mid and high-end markets, due to the products' high prices.
Mahsanei Hashmal co-owner Yoram Badash said, "The next step in the chain's development is to enter overseas markets. We might buy a foreign chain. We'll begin with one store and see how things develop. It's not like we have to grow at any price."
Commenting on the chosen market, Badash added, "Maybe Turkey or Greece. Nothing has been closed yet."
Israel's household appliances market is estimated at NIS 4.5 billion.
Published by Globes [online], Israel business news - www.globes.co.il - on May 4, 2005