New Supermarket Chain FAIR Promises 35% Price Cut in Israel
New retail venture FAIR plans to launch five discount supermarkets in Israel by 2027, promising a 30% to 35% price cut through direct procurement, private labels, and a hard discount model inspired by Germany's Aldi.
A new retail venture named FAIR is preparing to shake up Israel's supermarket sector by opening its first five discount stores in the Shfela region. The initiative promises to reduce average consumer spending by 30% to 35% compared to similar market products through a lean operational model, private labels, and direct procurement from suppliers.
The first store is scheduled to open in 2027. Initially, the founders plan to launch branches in Modi'in, New Ramla, and Beer Ya'akov to test the operational model, shopping experience, and product mix. FAIR eventually intends to expand to 20 stores and develop online sales operations.
International Expertise and the Aldi Model
Significant media exposure followed the arrival in Israel of Chris Schweiger, a former senior executive at German retail giant Aldi, who joined the FAIR venture as a consultant. Schweiger, who visited 20 supermarkets in Israel, criticized the local shopping experience and expressed confidence in the venture's prospects.
In an interview with the press, Schweiger outlined Aldi's operating principles, which rely on a relatively narrow product range, private labeling, operational efficiency, and strict cost control. He noted that significantly lower prices can be achieved by cutting costs across all stages of the supply chain, estimating that FAIR can fulfill its 35% discount promise with strict discipline and a limited staff.
Product Selection and Hard Discount Strategy
FAIR's model is based on approximately 1,200 products per branch. About 1,000 will be permanent items, accompanied by some 200 seasonal or irreplaceable products. The vast majority of items will be private labels produced locally or imported internationally, including partnerships with Italy's Coop and other global suppliers.
The company is adopting a hard discount model familiar from international chains like Aldi, featuring permanently low prices rather than temporary sales or club membership promotions. The founders plan to maintain a gross margin of up to 15% and publish their prices on the Consumer Protection Authority transparency website upon opening.
Financing and Leadership
The venture is led by CEO and co-founder Gal Shulman, who previously managed private label sectors at Shufersal and Carrefour. He is joined by co-founders Dor Avnaim, Gil Bickel, Avi Avidan, and Niv Amir. Financing includes a crowdfunding campaign raising 636,000 shekels, private investments, and an ongoing campaign aiming to raise a total of 18 million shekels to launch the initial branches.
