French Carrefour chain on it's way to Israel - 150 Mega-Yeynotbitan branches will be converted

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by Ifi Reporter Category:Financial Mar 6, 2022

The largest food retailer in Europe - on the way to Israel. The French Carrefour chain has signed a memorandum of understanding with Electra Consumer to open a marketing network in Israel. As part of the deal: the Mega and Pavilion wines brands will be eliminated.
Electra said that "Carrefour's first branches will open by the end of 2022 and within three years more than 150 mega-yeynotbitan branches will be converted to Carrefour, in parallel with the opening of new branches.

The franchise agreement between the parties is for a period of 20 years, with the possibility of extension for another 20 years. The franchise fee will include an initial payment, plus payments to be paid as a percentage of the income. The parties will work to sign a binding agreement by April 2022.
For Carrefour this is an expansion of the company's international operations. This is the first time that an international food retailer of this magnitude has entered Israel. It has about 14,000 branches in Europe, the Middle East, North Africa, East Asia, and Africa.
Carrefour has a turnover of 81.2 billion euros. In 2021, cash flow reached a peak of 1.23 billion euros and a 7.7% increase in operating profit, while in France the increase reached 20%. It is traded at a value of 14 billion euros.
The company operates in various retail formats: supermarkets, cash & carry, municipal stores, stores selling only frozen products, and online sales sites, an area it has been trying to strengthen in recent years.
Electra Consumer Products from the Elco Group is controlled by the Zalkind brothers. It is an importer and manufacturer of electrical products and air conditioners and is the leading retailer in the field of electricity with the electricity storage and Shekem Electric chains. At the same time, she owns
 The control of the Bitan Wines chain and the franchisee for opening a convenience store chain of the global Saban Elban brand and is also the franchisee of the Colombia brand in Israel.
About a year ago, Bosch Global became a partner of Electra Consumer Products after acquiring 40% of Electra Industries and joining it in establishing an advanced thermo-technological park in Ashkelon.
Electra Consumer Products is traded at a value of NIS 4.1 billion and in the last three years, the stock has yielded a return of over 480%.
At the same time, this morning Electra Consumer Products also published its reports for 2021, according to which its revenues from the food retail sector were NIS 1.7 billion and operating profit NIS 45 million. , The chain's activity recorded a net loss of about NIS 7 million.
Patrick Laspargos, president of Carrefour's International Division, said: "We are confident that Carrefour's arrival in Israel will significantly help improve the local shopping experience and strengthen the consumer's purchasing power."
Electra Consumer Products CEO Zvika Schweimer added: "Being Cararrefour, a leading global marketing chain and one of the largest food and consumer producers in the world, will enable Electra Consumer Products to lead the food and consumer market in Israel and enter new fields."
Pavilion Wines CEO, Amit Zeev: "Carrefour's entry into Israel will change the rules of the game in the market and give us differentiation and an advantage over competitors."
Reuven Perry, head of the Histadrut's trade division, said: "The Histadrut and the workers' organization welcome the cooperation. The world is under the strong brand Carrefour. "

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