Israeli food retail group Blue Square announced it has opened two new branches of its MEGA discount supermarket format. The company has invested US$19m to build a state-of-the-art 7,000 m2 MEGA store in Rehovot, located in the new 'American City' business centre.

The store offers a selection of 35,000 items as well as an electric appliance store operated under by franchise by one of the country's leading appliance chains. Blue Square is working to develop a one-stop shopping experience incorporating further franchised stores such as a photographic shop, a pharmacy and a restaurant.

Blue Square also announced the investment of NIS1.5m (US$358,000) in the conversion of a 3,000m2 Super Center into a new MEGA.

MEGA stores operate according to the 'Customer Club' format, where customers pay a modest annual membership fee to gain access to low prices. Non-members are allowed to shop in MEGA in exchange for a pay-as-you-go entrance fee.

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Grocers & Supermarkets 2001