Stock chains have taken over a third of the back-to-school market
September 1st is approaching: while in the past almost only stationery and office supply chains enjoyed the growing market, in recent years stock chains have entered the picture, already holding 35% of the activity. How does all this affect prices?
Stock chains are taking over the back-to-school market, holding up to a third of the market share. This emerges from a survey by Dun & Bradstreet, which shows that competition from stock chains and international online platforms continues to strengthen, changing the map of the back-to-school market, which was previously the domain of office supply and stationery chains. The increase in competition, also against online sites, benefits the consumer with promotions and worthwhile deals.
The trend of strengthening stock stores is reinforced by data from the company CofaceBDi, which estimates the market at 431 million shekels and notes that stock stores continue their growth, with their share expected to reach 35% compared to 30% last year. For example, Max Stock, with its 63 branches, is opening a special department ahead of September 1st, located at the entrance to the store with a rich variety of notebooks, stationery, pencil cases, craft supplies, and backpacks. The chain is also offering for the first time school bags with wheels under its private label. Alongside Max Stock, Zol Stock, Dan Deal, and others are operating. The stock activity of Rami Levy has also joined them, alongside the expansion of the Jumbo chain in Israel. The competition has also spilled over to the Hamashbir chain and reached food chains: Osher Ad and Rami Levy are offering back-to-school promotions, including backpacks.
From conversations held by Dun & Bradstreet representatives with traditional businesses in the industry, it appears that a slowdown in activity is noticeable this year compared to previous years. According to the company's assessment, among the factors for this are the expansion of stock chains and purchases on international e-commerce sites, whose sales share in back-to-school is estimated at 10%. Daniela Raz Weinreb, VP of Data and Product, stated: "The low dollar exchange rate led to a certain decrease in import costs and allowed for a wider variety of attractive promotions."
CofaceBDi estimates that the market share of stores specializing in office supplies will stand at 39% of revenues, about 154 million shekels. A variety of players operate in the market: Kravitz, Office Depot, YOLO, Hanan Stationery, Graphos, and more. The average basket of back-to-school products, including a bag, stationery, notebooks, a drinking bottle, and a lunch box, is estimated this year at 480 shekels. The price range is very wide, usually ranging between 250 and 750 shekels, depending on the brands and product quality.
Roni Alfran, VP of Data and Products at Dun & Bradstreet, noted: "The competition no longer takes place only between a private store and a specialized chain, but also against large stock chains and international platforms that are a click away. This change creates greater pressure on prices and on traditional players."
AliExpress launched a back-to-school promotion for Israeli consumers, lowering the threshold for free shipping to 139 shekels instead of 169 shekels and adding collection points. However, the promotion runs from August 17 to 28, close to the start of school, and if the shipment is delayed, the equipment will not arrive in time for September 1st. Dun & Bradstreet notes that the public prefers to purchase central products like school bags in Israel due to their weight and shipping costs. Furthermore, sea shipping prices have started to rise again, which may increase import costs and later affect the price level for the consumer.
