Eitan Yohananoff: "Selling cars in a supermarket is cool, but it doesn't change the world"

Eitan Yohananoff, CEO and controlling shareholder of Yohananoff, is preparing the ground for separating his real estate activity, potentially taking it public in the future. When asked if the supermarket chain aims to become a real estate empire, he responds: "I don't speak in terms of empires because empires fall. Do we intend to develop extensive real estate activity alongside retail? Yes. In the end, we are businessmen, and there is no reason why we shouldn't bring value there as well."

The Rationale for Separation

According to Yohananoff, the decision to separate activities is driven by differing investor expectations. "Retail investors expect immediate positive cash flow, while real estate is a long-term investment. Once the activity becomes significant, it is appropriate to separate it. We are reducing debt in the process, and each field will receive the professional management it needs," he explains.

Regarding a potential IPO, Yohananoff notes that it is a tool he keeps "on the shelf." "The wolves from the capital market are already sitting on my phone, but it will only be done as needed. Once you are a built, orderly, and transparent company, you can use this tool quickly if you want to perform an IPO."

Addressing Competition and Market Trends

Commenting on the indictment filed by the Competition Authority in February 2025, Yohananoff emphasizes: "We are 100% sure of our innocence. I know the law, and I know what is allowed and what is forbidden. We do good for consumers, and our system works correctly. We are used to being accused of things we didn't do."

On the topic of "new retail" and selling cars in supermarkets, Yohananoff remains skeptical: "Cars are cool, but they don't change the world. A gimmick is fine, but putting a product on a shelf at a good price on an ongoing basis is an achievement. A business cannot get lost in gimmicks; the goal is to develop categories that will remain."

Efficiency and the Labor Market

Yohananoff also addressed the labor shortage and the role of foreign workers. "About 10% of our employees are foreign workers, and we are still in a shortage. Generation Z is becoming more influential in the labor market, and they won't do tasks that a robot or software can perform. Today, we have a significant number of Thai workers who do great work, and the shelves look much better than they did half a year ago."

In conclusion, he stressed that to lower the cost of living, the government must act more decisively: "In retail, one needs to start by lowering VAT on basic products like eggs, sugar, and flour. The problem is that Israeli governments are addicted to their own egos and fail to take necessary actions."