Cofix Group Ltd. (TASE:CFX) is raising the price of its products from NIS 5 to NIS 6, a 20% hike in the price at which it started doing business.
The new prices will become effective on Sunday, February 19. The price of 800 items at the Super Cofix supermarket chain will remain at NIS 5.
Launched in September 2013, the Cofix chain now has hundreds of outlets. It is now changing the price that made it an icon and inspired imitation chains (which will probably now raise their prices).
Cofix owner Avi Katz attributed the price hike to market forces. "The price revolution we have led for the past three and a half years is indisputable. We're relying on our customers to lend a hand and help us go on moving the revolution forward. Even at NIS 6, Cofix is still the cheapest and most worthwhile chain," he remarked.
Cofix blamed its price increase on rising prices in the economy, including rent, the minimum wage, municipal property taxes, electricity, and raw materials, "which do not allow the chain to continue selling its products for NIS 5."
"We have saved consumer over NIS 500 million directly and indirectly"
Katz added, "Since we began the Cofix chain three and a half years ago, we have saved consumer NIS 500 million directly and indirectly. We sell 200,000 items a day, which means that we save NIS 1.5 million for consumers daily, compared with the prices at other chains. The idea of a uniform price for products on which Cofix is based will continue, but the price will be NIS 6.
"We tried for a long time to fight against the market forces and keep the price at NIS 5. The minimum wage rose, rent went up, and municipal property tax, electricity and raw materials became more expensive, which did not allow us to sell for NIS 5 anymore.
"Raising the price will enable us to continue as a strong chain, add to the range of our products, and bring the revolution to 100 more locations where the NIS 5 price kpt us from opening a Cofix branch. We'll preserve the chain's attractiveness at NIS 6, too, and continue to be the cheapest and most worthwhile chain."
"No justification for an across-the-board price hike"
Itzik Alrov, founder of the Consumers Movement, which is combating the cost of living, said in response to the Cofix announcement, "There is no justification for an across-the-board price hike at Cofix. Exploiting the chain's uniform price to make more profits at the public's expense gives me a bad feeling."
Alrov added, "We call on Avi Katz to suspend the planned price increase and reconsider. The Cofix method brought fairness and reasonable prices to a cartel-ridden sector with scandalous prices. It's painful to see someone who purports to be changing the system give into it."
Published by Globes [online], Israel Business News - www.globes-online.com - on February 16, 2017
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