Co-Op Israel Supermarkets Ltd., which owns the Super Zol ("Super cheap") brand, has halved prices for meat, fruits and vegetables for three days on sales of at least NIS 150. Co-Op Israel CEO Rami Mendel said the campaign will cost NIS 1 million.
Mendel told "Globes", "I see the recent awakening of Shufersal Ltd. (TASE:SAE;Pink Sheets:SSLTF) (formerly Super-Sol) and Blue Square Israel Ltd. (NYSE: BSI; TASE: BSI), the launch of the Mega Bull chain, and their many advertisements in the newspapers, and I must fight for my position in the market."
Commenting on the sales by Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI), Mendel said, "We're not talking about local battles against this or that chain. I'm sending a signal to all the supermarkets that I am cheaper. Suppliers of course won't like this campaign, and what it might be a harbinger of, but they also don’t like that I sell cola for NIS 1 per can, and I'm still selling cola."
Rami Levi, which has been waging a price war against Co-Op Israel for years, has cut prices for the same products as its rival.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008