Fox and Hot will establish and operate a chain of stores within 3 years

Fox has signed a partnership agreement with Hot Mobile to establish and operate a chain of stores for the marketing and sale of mobile devices, communications products, multimedia and related accessories, under the red brand. This is according to an announcement issued by the two today (Wednesday) to the Tel Aviv Stock Exchange.
According to the companies, they will open 30 200-meter stores in the next three years, with Apple items making up 40% of the store. 20% of the store: a private label of accessories and other brands such as Samsung. An online sales site will also be launched. The first branches are expected to open in Dizengoff Center and Eilat in the third quarter of 2021.
HOT will hold 50.99% of the partnership, Fox 48.99% and the general partner 0.02%, while the holding structure in the general partner will also have a 51% majority for HOT and 49% for Fox. "After two years, the parties will examine the possibility of expanding the partnership's activities to other countries," the statement said.
It is also stated that "The General Partner's Board of Directors will appoint five directors - three will be appointed by HOT and two by Fox. "Considering the financing of the partnership's activities from its independent sources and / or through owner loans, the appointment of senior executives (including the CEO) and the termination of the agreement in the defined circumstances."
Fox estimates that its share of the expected investments in the partnership during its first three years of operation is expected to amount to NIS 22 million.
"Fox sees this engagement and its entry into the field of mobile devices, multimedia and communications as another important step in the realization of the company's growth strategy and the diversification of its product portfolio," it read. HOT already has stores for the sale of cellular accessories, but according to HOT CEO Tal Granot, most of the market sells cellular products at stalls and there are no similar stores in the country.
The new network will operate alongside 30 booths and HOT Mobile service centers. "The HOT Mobile network will continue to exist, it is mainly intended for marketing HOT products, but today the accessories market is rolling in billions of shekels a year and has enough space for more players. The company will also sell a SIM under the red brand name. The network, but they will be competitive, "Granot said at a news conference this morning.
Harel Wiesel said: "We are not going to make price wars. Fair prices are given and they will never say we sell more expensive."
Regarding the corona crisis, Wiesel said: "I believe there will be no more closures in the State of Israel. There are 900 deaths in February and no one has received a second vaccine. The incident is over and over."