The shares of Shufersal Ltd. (TASE:SAE), Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI), and Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) fell 2-5% yesterday, following the launching of the Ehad supermarket chain.
A survey of products and prices at Ehad's first branch, opened in Ra'anana shows that for the first time in Israel, the supermarket is offering private label dairy products produced by the Arava Dairy. All the price controlled dairy products are being sold at less than the controlled price. For example, a container of cottage cheese is being sold for NIS 4.90, compared with NIS 5.80 for the large companies' brands. 5% soft white cheese is being sold for NIS 4.40, compared with higher prices at the other supermarket chains, and a bag of 3% milk from Ramat Hagolan Dairies is being sold for NIS 4.60.
Further perusal showed that a bag of Turkish coffee sold for NIS 16 by the Mega chain is being sold for NIS 11 at Ehad,. A bag of frozen garden peas, which costs NIS 10.90 at the Victory Supermarket Chain Ltd./ (TASE: VCTR), costs only NIS 9 at Ehad. A 500-gram container of oatmeal, which costs NIS 13.30 at Rami Levy, costs NIS 11 at Ehad.
However, some products cost more at Ehad. For example, 411 grams of Honey Bunches of Oats breakfast cereals cost NIS 19.50, Asli hummus, produced by Shamir Salads costs NIS 9.90, and a package of stage 5 diapers made by the Babysitter company costs NIS 39 at Ehad, compared with NIS 32.90 at Rami Levy.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015