Super-Sol, Israel's largest supermarket chain, is drawing up plans to set up a chain of convenience stores to compete with rival Blue Square.

The two companies are already waging a price war following the re-branding of Blue Square's supermarket business, Mega Ba'ir.

Super-Sol plans to open dozens of convenience stores - tentatively called Super-Sol Express, though the name has yet to be finalised - in major cities across Israel.

In the past two months, Super-Sol has offered the owners of independent supermarkets NIS2m (US$504,000) to vacate their premises. Some agreed, and the company has already signed contracts for convenience stores in cities including Tel Aviv, Jerusalem and Haifa.