The company acquired the franchise for Columbia in Israel and is on its way to operating the franchise for Seven Eleven. CEO: “Fox is still in the picture”
Tags: Tzvika Schvimmer
Electra Consumer Products
Electra Consumer Products entered the field of touring yesterday with its controlling purchase of the Israel franchise for Columbia valued at NIS. 130 million. According to CEO Tzvika Schvimmer, the move does not affect its plan to open 7-Eleven Stores in Israel.
“Next week I'll be in Dallas (where 7-Eleven is headquartered – NK). I believe we’ll be closing on the franchise agreement,” Schvimmer told Calcalist. “I estimate that we’ll be opening the stores in Israel next year.” As for implementing the plan to operate the stores in partnership with Fox, controlled by Harel Vizel, Schvimmer added: “We’re checking our options and Fox is still in the picture.”
The entry of 7-Eleven stores into Israel will increase competition in an already crowded arena of convenience stores operated by companies such as Paz via “yellow,” Dor Alon’s “Alonit,”, Delek’s “Menta,” and Sonol’s “SoGood.” In addition there are the AM:PM chain, the convenience stores run by Supersol Express, and countless neighborhood chains such as Super Yuda acquired by Paz, and City Market acquired by Sonol. Yesterday Electra, controlled by Elco (47.8%) signed an agreement to acquire control (50.01%) in Saar, the Israel franchisee of the global Columbia brand. The transaction sees Electra paying NIS. 80 million, half of which will be transferred direct to Saar shareholders, and the remainder to be invested in the company for ongoing business development.
Saar was established in 1994 by Tomer ben-Senior and Aviad Tzabari, who serve as co-CEOs. The company imports and produces clothing and equipment for travelers, campers, skiers and snowboarders, and for field and leisure sports, having acquired the Israel franchise for the global brand Columbia. The company operates three retail chains comprising a total of 34 branches: the Columbia chain for touring and leisure fashion, with 17 stores; Outsiders with 8 stores; and the Shvilim chain for internal Israeli trips, numbering 9 stores. In addition to the physical stores, the company also operates two e-Commerce websites: Columbia and Outsiders.
Saar additionally sells its products to stores and chains across Israel. It also supplies military and security forces, government offices, and private organizations.
According to Electra, Saar’s sales for 2020 totaled NIS. 126.6 million, yielding an operational profit of NIS. 23.5 million (18.5% of sales). Schvimmer estimates that the potential for expansion is extensive: “The category of touring has expanded into the areas of apparel and lifestyle. We’ll open dozens of stores and double sales within 3 years, partly by introducing additional brands.”