Carmela Enters Physical Retail with 10 Million NIS Chain Expansion
Israeli e-commerce platform Carmela is investing 10 million NIS to open five physical stores, aiming to compete with market leader Noy HaSade while retaining full private ownership.
After operating exclusively online for two decades, the culinary and agricultural e-commerce platform Carmela is investing approximately 10 million NIS to launch a physical retail chain across Israel. Founders and cousins Yaniv and Naor Hassid have consistently rejected partnership offers and IPO proposals over the years, choosing to retain full private ownership of the enterprise.
Expanding to Brick-and-Mortar Retail
Carmela plans to open five physical stores by the end of 2028. In mid-November, the first two locations will open in Tel Aviv: a 200-square-meter flagship store on Ibn Gabirol Street at the former site of the Giraffe restaurant, and a 100-square-meter branch in Ramat Aviv. The Tel Aviv branches will be company-owned, while stores outside the city are slated to operate under an operational franchise model.
Speaking to local media, Yaniv Hassid noted that despite numerous buyout and public offering proposals over the years, they decided to remain independent. The cousins built the business starting in 2006, evolving from family market stalls at the Carmel Market taking telephone orders into a comprehensive culinary platform offering fresh produce, meats, fish, cheeses, gourmet items, vegan goods, and gluten-free products. Backed by a 3,000-square-meter logistics center in Holon equipped with cold storage and a dedicated fleet of refrigerated trucks, the company previously managed around 1,000 daily deliveries.
Competition and Market Landscape
Carmela's move into physical retail sets the company on a direct collision course with Noy HaSade, a prominent market player operating 17 branches with an annual turnover exceeding 200 million NIS. Noy HaSade previously drew acquisition interest from Harel Wiesel's Fox-Wizel Group in a deal valuing the chain at roughly 150 million NIS, though negotiations collapsed in June due to fundamental disagreements.
Carmela's expansion strategy leverages its existing digital customer base. Following Tel Aviv, the company targets areas with strong online order volumes, including Herzliya, Ramat Gan, Givatayim, and Ramat Hasharon. The Ibn Gabirol flagship store will offer fresh fruits, vegetables, meats, fish, frozen goods, and pantry items, while also hosting culinary events with chefs, farmers, and food importers. According to Naor Hassid, establishing a physical retail presence is ultimately designed to further strengthen and support the company's core online operations.
