Israel’s leading supermarket chain, Super-Sol, has formed a subsidiary chain called “Mini-Neto”, aimed at competing with privately owned neighbourhood mini-markets and grocery stores.
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The new marketing strategy pertains to operating relatively small stores each covering an area of 550m², of which seven such stores have already been established, with plans to increase the number of such stores.
Trade sources commented that the move, backed by Super-Sol strong financial resources and aggressive marketing methods, “is bound to gradually eliminate the privately-owned grocery stores in many towns throughout the country”.
Super-Sol plans to expand its sales outlets by establishing its Mini-Neto stores in gas stations, based on the success of the convenience stores operating already in the gas stations. In addition, according to a report in Maariv, the chain is currently negotiating with Paz Fuel Company to jointly set up gas stations adjacent to several Super-Sol stores.
According to a survey by the POC Strategic Consulting company, the big chains now hold 50% of all food sales, while the rest is handled by 7,000 privately-owned mini-markets and grocery stores.
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By GlobalData
