(photo credit: Illustrative:Reuters)
Shufersal Ltd. will cut the prices of 30 basic goods by an average of 20
percent, after reaching a deal with the Tel Aviv Student Union, in exchange for
which the Student Union cancelled the boycott on the supermarket chain that was
scheduled to begin on Thursday.
Shufersal president and CEO Effi
Rosenhaus signed the agreement. The supermarket will lower prices for
cottage cheese, eggs, hummus, sugar, and other items. The parties agreed that
the list of goods will be published at the beginning of next
Shufersal asked for time to implement the price cuts, and it will
probably ask the suppliers of these products to absorb a large part, or even
all, of the reductions.
“We do not want Shufersal to go bankrupt. This is
a first step. I want to generate momentum,” Tel Aviv Student Union leader Ran
Livne told “Globes.”
The students said that Shufersal promised to apply
the price cuts at all its branches, including Shufersal Sheli and Shufersal
Deal, irrespective of location or brand. The supermarket chain will also freeze
all price hikes until January.
“This is the first major achievement of
the current wave of consumer protests. This is the first step toward restoring
sanity to Israel’s food market. We call on the Israeli public to join the
million-person march on Saturday night, and to join the next consumer protest
that we will announce on Sunday,” said Livne.
Alon Holdings Blue Square -
Israel Ltd.’s Mega supermarket chain has chosen to mimic, and even surpass, its
rival by announcing on Wednesday that it will cut the prices of 32 basic goods
by 20%. Mega cut its prices for bread, dairy products, eggs, pasta, cornflakes
and other cereals, children’s snacks, frozen foods, canned goods, baked goods,
and cleaning products.
The supermarket chain rushed to make a similar
move to prevent a boycott like the one that the student union threatened against
Shufersal unless it agreed to the price reductions.
Mega said that the
selection of products of which the prices are being cut is based on an analysis
of products consumed by all Israeli families. Many of the products are brand
The company said that the basket of products will be a cheaper
alternative, and that this is a new long-term pricing policy, not a temporary
Blue Square CEO Zeev Vurembrand said, “We are aware of the
public’s need for permanently lower prices for food products, rather than
specific solutions of sales campaigns and discounts. Only a strong private brand
can create real competition and force food companies to lower
Blue Square’s share price rose 0.3% by mid-afternoon on the TASE
today to NIS 24.02, after falling 2.9% in New York to $6.60, giving a market cap
of $435 million.