Supersol launches newest foodstuffs discount chain
Supersol introduced yesterday its discount chain Supersol Deal, responding to two years of losing market share to private chains like Hezi Hinam, Haviv, and Super Victory.
Supersol introduced yesterday its discount chain Supersol Deal, responding to two years of losing market share to private chains like Hezi Hinam, Haviv, and Super Victory. Supersol expects the new chain of 27 stores to shake up the supermarket field and that within two years, several private discount supermarkets will disappear from the competition.
The major chains' market share has slipped to about 50 percent in recent years, generating an estimated annual turnover of NIS 37 billion. But Effie Rosenhaus, Supersol CEO, believes the number of competitors will decline and that Supersol and the other major supermarket chains - Blue Square and Clubmarket - will enlarge their collective share to 65 percent. "2007 will see fewer players," said Rosenhaus at a press conference announcing the new chain, "but the number of branches won't decrease."
The business concept of the new chain is to offer every day low prices devoid of temporary offers, as is done in other countries. Supersol invested NIS 50 million to establish the new chain, and Rosenhaus expects Supersol Deal to account for 35 percent of group sales.
Rosenhaus guaranteed that the countrywide chain would offer the cheapest basket of prices in hopes of reclaiming lost clients.
Supersol decided to launch the new chain before the Passover holiday season, which is characteristically a peak shopping season. According to Rosenhaus, although the chain will not compete with competitors' advertisements for holiday discounts, he does not fear losing clientele.