Super-Sol was not the only supermarket chain to suffer from this summer's social protest: Competitor Blue Square (Mega ) also released its third-quarter financial reports on Monday, which revealed that operating profit was down 43% compared to the parallel quarter in 2010.
Alon Blue Square reported profits of NIS 34 million for the quarter, up from NIS 2 million in the parallel time frame, which was before the October 2010 merger between Dor Alon and Blue Square. The higher profits were due to NIS 35 million in tax benefits following the company's July purchase of 49% of credit card company Diners.
Yet Blue Square's revenues from the company's 211 supermarkets were down 6.5%, to NIS 1.7 billion.
CEO Zeev Vurembrand said the discounts the company offered in order to woo back consumers in the wake of the protests had cost it NIS 15 million in operating profits. The company would be cutting its workforce and its advertising budget in order to save money, he said.
Want to enjoy 'Zen' reading - with no ads and just the article? Subscribe todaySubscribe now