One of the world’s largest retail chains is on the way to Israel: Carrefour’s first branches will be opened by Electra by the end of the year and within 3 years more than 150 Yenot Bitan and Mega branches will be converted to the French brand. Amit Zeev, CEO of Yenot Bitan: “Carrefour’s entry will change the rules of the game in the market”
Electra Consumer announced this morning a dramatic move in the Israeli retail market: the company controlled by the brothers Danny and Mikey Zalkind has signed a memorandum of understanding with the international retail brand Carrefour to open a chain of supermarkets in Israel.
According to Electra, Carrefour’s first branches will be opened by the end of the year and within 3 years more than 150 Yenot Bitan and Mega branches will be converted to the French brand under which the chain operates. Carrefour is one of the world’s largest retailers in terms of its revenue. Electra intends to begin selling Carrefour’s branded products at Yenot Bitan branches even before the summer.
This is a move that is considered a tiebreaker in the market, as it has dramatic implications for Electra. The company will be able to use the power of the international network for the benefit of procurement from its suppliers, at low prices, and will be able to launch a private label in Israel under the existing brand and on the basis of the company’s products abroad.
Carrefour is the largest international retailer to enter Israel to date with about 13,900 branches and sales turnover of 81.2 billion euro. More than 2 billion transactions a year are carried out at Carrefour, and the company’s sales turnover as of 2021 amounted to 81.2 billion euro.
Carrefour is a public company traded on the Paris Stock Exchange. The company’s market value stands at about 14 billion euro.
The franchise agreement between the parties is for a period of 20 years, with the extension option for another 20 years. The consideration for the franchise will include an initial payment, plus payments to be paid as a percentage of the revenue. The parties will work to sign a binding agreement by April 2022.
Patrick Laspargos, president of Carrefour’s International Division, said: ”Carrefour’s arrival in Israel will significantly help improve the local shopping experience and strengthen the purchasing power of the consumer, who will receive better products at more affordable prices”.
Zvika Schwimmer, CEO of Electra Consumer said: “Carrefour’s entry into Israel is the largest and most significant move in the history of retail in Israel. Carrefour’s being a leading global marketing chain and one of the largest food and consumer producers in the world, will enable Electra Consumer Products to lead the food and consumption market in Israel and enter new fields”.
Amit Zeev CEO of Yenot Bitan said: “Carrefour’s entry will change the rules of the game in the market and will set us apart and give us advantage over the competitors. We are preparing to bring good tidings and change that will be felt in each and every home and offer solutions to the cost of living for the consumers in Israel”.
The leading marketing chain in Europe
Carrefour was established in 1960 in France and is one of the world’s largest marketing chains. The chain has over 13,900 branches across the world in 47 countries. It operates directly across Europe and also operates as part of partnerships in other countries in the Middle East, North Africa, East Asia and Africa. In the past year alone, more than 200 Carrefour stores have been opened around the world.
The company operates in various retail formats: hypermarkets, supermarkets, Carry & Cash, urban stores and online sales sites, tailored to each country. The company operated stores of various sizes from 80 square meters to 20,000 square meters.
In addition, Carrefour is one of the world’s largest food and consumption manufacturers. The company manufactures in hundreds of factories around the world, 14,000 food and non-food products, under 20 brands that it owns. Carrefour produces pasta, chocolates, snacks, cheeses, delicacies, ketchup, sauces, conserves, fresh food, wine, beer, cleaning products, hygiene products, detergents, organic food and more.
The company has special expertise in French gastronomy and offers a wide and unique range of products in the field of wines, cheeses, pastries and desserts.