Mashbir Enters Israel's 1.7 Billion Shekel Toy Market With New In-Store Departments

The Israeli toy market, valued at approximately 1.7 billion shekels annually, is welcoming a new major player as Mashbir enters the sector and plans to open dedicated toy departments in about 25 of its branches by the end of the year.

The strategic move brings Mashbir into a crowded and highly competitive market dominated by specialized toy chains, discount stock stores, and bookstore chains. Major retail competitors such as Shufersal and KSP already offer leading toy brands, including Lego, at discount prices.

The new departments will primarily feature games and toys targeted at children aged two to eight. Initially rolling out in selected branches, the company aims to expand the footprint to roughly 25 locations by year-end. Loyalty club members will have access to products starting at 34.90 shekels.

Behind this expansion lies an effort by Mashbir to maximize the commercial efficiency of its existing retail space. Instead of launching standalone stores, integrating the toy category directly into current branches is designed to increase the average customer basket.

Saar Shavit, Deputy CEO of Mashbir, explained that introducing toys is part of the chain's growth strategy to incorporate complementary categories and broaden customer purchasing options.

Competition in the Israeli toy industry has intensified significantly in recent years due to the rapid growth of discount chains and the entry of non-traditional players into the market. Furthermore, parallel imports of renowned brands have increased pricing pressure and squeezed profit margins across the sector.

Mashbir aims to leverage its existing nationwide branch network and established customer base to carve out a share of the lucrative 1.7 billion shekel market.