Israel's Discount Store Market: Competitive Analysis and Growth Strategies
There are approximately 246 discount stores in Israel. A new report by POINTS reveals the competitive landscape, data on leading chains, and their deployment strategies based on population density.
The discount store market in Israel continues to grow and currently numbers about 246 branches across the country. This is according to a new report by POINTS, a company specializing in the collection and analysis of geographic and demographic data for business entities. The report examined the distribution of all discount store chains in Israel and the connection between store location, population size, and consumption habits.
Data shows that Zol Stock is currently the largest discount store chain in Israel with 82 branches. It is followed by Max Stock with 66 branches, and in third place is Reshet HaStock with 52 branches. The three chains together hold about 81% of all discount stores in Israel. Further down the list are Boom with 19 branches, Jumbo Greece and Dan Deal with 13 branches each, while Rami Levy Stock currently operates only one branch.
According to the report, the differences between the chains are not limited to the number of branches, but also in their deployment strategy. While some chains aim for a wide presence in almost every area of the country, others focus on large cities, shopping centers, and major commercial hubs.
Zol Stock stands out for its wide deployment in peripheral settlements, medium-sized cities, in Judea and Samaria, and in the Arab and Druze sectors. The chain operates branches in northern cities including Shlomi, Ma'alot-Tarshiha, Katzrin, and Rosh Pinna, alongside branches in the south in cities such as Ofakim, Netivot, Dimona, and Eilat. In addition, it operates branches in Beit El, Karnei Shomron, Givat Binyamin, and Modi'in Illit.
The report also notes that Zol Stock has the widest presence in the Arab and Druze sectors, with branches in, among others, Rahat, Umm al-Fahm, Baqa al-Gharbiyye, Tayibe, Tira, Sakhnin, Shefa-'Amr, Kafr Qasim, Majdal Shams, Buq'ata, Daliyat al-Karmel, and Maghar. According to the analysis, this is a unique deployment that does not characterize most competitors.
Conversely, Max Stock adopts a different strategy and focuses mainly on large cities and central commercial hubs. The chain operates 6 branches in Tel Aviv, 4 in Jerusalem, and 3 in Haifa. In Rishon LeZion, Petah Tikva, Bnei Brak, Netanya, and Ra'anana, it operates 2 branches in each city. Even on the periphery, it chooses mainly cities that serve as regional centers, including Be'er Sheva, Afula, Karmiel, Tiberias, Eilat, and Kiryat Shmona.
One of the prominent data points in the report is that about a third of Max Stock's branches operate in the "Mini Max" format — small stores located in the heart of cities, mainly in the central region, designed to provide a solution for frequent shopping and to utilize purchasing power in urban areas.
Reshet HaStock presents a combined model, with activity both in central cities such as Tel Aviv, Holon, Modi'in, Beit Shemesh, and Be'er Sheva, and on the periphery, in cities such as Kiryat Shmona, Nahariya, Rosh Pinna, Arad, Migdal HaEmek, Ma'alot-Tarshiha, Beit She'an, and Ofakim.
The report also checked the ratio between the number of discount stores and the population size in each city. Topping the list is Nesher with about 1.32 stores per 10,000 residents. It is followed by Gan Yavne with about 1.05 stores per 10,000 residents, and in third place is Kiryat Malakhi with about 0.99. Also at the top are Beit She'an, Ma'alot-Tarshiha, Kiryat Shmona, and Ofakim.
Among cities with more than 100,000 residents, Hadera leads with about 0.46 stores per 10,000 residents, followed by Be'er Sheva with about 0.44 and Modi'in-Maccabim-Re'ut with about 0.39. In contrast, Tel Aviv-Yafo is ranked 12th with about 0.20 stores per 10,000 residents, Jerusalem is in 17th place with only about 0.10, and Herzliya closes the list with about 0.09.
The report notes that the nationwide deployment of discount chains does not focus only on Gush Dan, but includes a significant presence also in peripheral cities in the north and south. Many stores are located near major traffic arteries, regional commercial centers, and employment zones, and also serve residents arriving from nearby settlements.
Yafit Ben Haim, CEO of POINTS, stated:
"Discount stores do not necessarily look for the largest city, but for the most correct location. The data shows that the factors influencing the choice of location are high accessibility, commercial hubs that serve as traffic generators, and the ability to attract an audience from a wide service area. Therefore, we see that many chains succeed precisely in medium-sized cities and on the periphery, where one store can become a regional shopping hub and serve a population far beyond the city's own borders. Simultaneously, a complementary model of small urban stores is developing, such as 'Mini Max', which are located in the heart of residential and employment areas and offer daily accessibility to city residents. Both models — the large regional store and the urban store — reflect the adaptation of the chains to changing consumption habits and the unique characteristics of each region."
