Israel Supermarket Sector Expands to 1,667 Branches Ahead of Holidays

A comprehensive retail mapping report ahead of the Tishrei holidays reveals that Israel's supermarket sector has expanded to 1,667 branches, led by Shufersal, Carrefour, and Rami Levy.

YnetAuthor: Meirav Crystal
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Israel Supermarket Sector Expands to 1,667 Branches Ahead of Holidays
Photo: Ynet / צילום: shutterstock

Israel's supermarket sector has grown to 1,667 active branches ahead of the Tishrei holidays, marking a 1.7% increase or a net gain of 28 locations compared to last year. According to a comprehensive mapping report by Points, the industry saw 59 new store openings alongside 31 closures.

Market Leaders and Chain Rankings

Shufersal remains the country's largest supermarket operator with 327 branches, accounting for approximately 19.6% of the national market. This total includes 95 high-end Shufersal Express urban outlets, 80 Shufersal Deal discount locations, and 75 Shufersal Sheli neighborhood branches. Its discount subsidiary, Universe, operates 30 stores. Shufersal is the dominant chain in Tel Aviv alongside AM:PM, running 24 branches in the city, mostly high-priced formats including 7 Sheli and 15 Express stores. The Azrieli HaShalom branch, formerly a Shufersal Deal, is set to transition to a Sheli or Express format in the upcoming Azrieli Spirala tower. Shufersal also maintains 23 branches in Haifa, 22 in Jerusalem—including 5 Deal locations—and 11 in Be'er Sheva, alongside a strong presence in the Haredi sector through sub-chains like Yesh Hesed, Yesh BaShekhuna, and Good Market, plus ownership of two Shaarei Revaha discount stores and four HaMefitz outlets.

Carrefour ranks as the second-largest chain nationwide with 150 branches, representing about 9% of the market. The large footprint stems from its history as Co-Op Blue Square, which evolved into Mega and later merged with Yainot Bitan. Carrefour's portfolio includes Hyper, Market, and specialized kosher formats, with Carrefour City serving as its dominant urban brand in Tel Aviv.

Rami Levy Shivuk HaShkama holds the third position with 102 branches, or roughly 6.1% of the market. Its sub-brands include Rami Levy Mehadrin, Rami Levy BaShekhuna—incorporating Super Cofix—Swissrat HaKtanah, and Super Beit HaPri. Combined, the top three chains control approximately 35% of all grocery branches in Israel.

Nativ HaHesed has emerged in fourth place with 90 branches following its acquisition of 44 stores from Barkat and Shira Market. Following closely are Mahsanei HaShuk with 70 branches, Victory with 69, City Market with 67, AM:PM with 60, Yohananov with 55, and Super Sapir with 53 locations. Tiv Ta'am operates 50 branches and plans further expansion with a new urban format. Convenience and transit-oriented retail is led by Yellow with 25 locations and Alonit with 24, while Osher Ad and Keshet Te'amim maintain substantial footprints. Spark Netherlands operates 3 stores, and Mishnat Yosef handles telephone and distribution center sales across 4 locations.

Urban Density and Geographic Distribution

Tel Aviv-Yafo leads the country in supermarket availability with 178 branches, translating to a ratio of 0.79 stores per 1,000 households. However, this high concentration does not equate to lower prices, as the city is heavily saturated with expensive urban chains such as AM:PM, which holds 32 of its 60 national branches, Tiv Ta'am, and City Market. While residents enjoy exceptional convenience and avoid traveling outside city limits, price competition remains subdued, though discount options exist, including Yohananov in Yad Eliyahu, Osher Ad on Yigal Alon Street, and Rami Levy in Ramat HaHayal.

Jerusalem follows with 130 branches, yielding 0.45 stores per 1,000 households, though Tel Aviv's branch density is roughly 74% higher than Jerusalem's. Despite fewer urban convenience outlets, Jerusalem features significantly more discount supermarkets to serve its lower socioeconomic profile, including two Shaarei Revaha locations, three Osher Ad branches, eight Rami Levy and Rami Levy Mehadrin stores, and 23 Zol U'VeGadol branches. Haifa registers 71 branches at 0.6 stores per 1,000 households, featuring Salah Dabach, Keshet Te'amim, and Stopmarket alongside major chains. Rishon LeZion operates 57 branches, Petah Tikva has 55, while Kfar Saba boasts 0.93 stores per 1,000 households and Raanana reaches 0.85.

Ultra-Orthodox cities mirror Tel Aviv's dense urban layout. Modi'in Illit leads the religious sector with 15 branches, or one store per 1,000 households, followed by Elad at 0.97 and Beitar Illit at 0.86, offering lower average price points despite featuring select high-end urban outlets.

Neighborhood Density and Market Dynamics

Neighborhood analysis reveals that Tel Aviv's Ganei Sarona boasts the highest supermarket density nationwide at 2.26 branches per 1,000 households, followed by Montefiore at 2.24, central Tel Aviv at 1.29, Florentin at 1.19, and the Old North at 1.03. Outside Tel Aviv, Givatayim's Tel Ganim neighborhood records 1.62 stores per 1,000 households, followed by Neighborhood Kha in Be'er Sheva at 1.41 and central Ramat Gan at 1.26.

Over the past year, Be'er Sheva recorded the highest expansion with six new openings against two closures. Ramat Gan added four stores with zero closures, while Tel Aviv experienced a slight net deficit of three openings versus four closures, which included an AM:PM branch. Among growing chains, City Market expanded by eight stores against one closure, Nativ HaHesed opened seven with one closure, and King Store and Karl Burger added four new locations each. Meanwhile, Yohananov launched a massive branch in Holon replacing a wholesale Shufersal location, and Super Sapir acquired nine stores from Carrefour.

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