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The company, which had eight branches and a market valuation of NIS 430 million, made its initial public stock offering in May 2007 on the Tel Aviv Stock Exchange.<ref name="Noam">{{cite web |url=http://english.themarker.com/why-did-rami-levi-stock-rise-so-much-shoppers-or-rightists-1.362658 |title=Why did Rami Levi stock rise so much: Shoppers, or rightists? |last=Bar |first=Noam |date=19 May 2011 |accessdate=28 June 2011 |work=Haaretz}}</ref> Within two years, the number of branches doubled to 16. The company now plans to expand to 30 branches by 2011.<ref name="bio"/>
The company, which had eight branches and a market valuation of NIS 430 million, made its initial public stock offering in May 2007 on the Tel Aviv Stock Exchange.<ref name="Noam">{{cite web |url=http://english.themarker.com/why-did-rami-levi-stock-rise-so-much-shoppers-or-rightists-1.362658 |title=Why did Rami Levi stock rise so much: Shoppers, or rightists? |last=Bar |first=Noam |date=19 May 2011 |accessdate=28 June 2011 |work=Haaretz}}</ref> Within two years, the number of branches doubled to 16. The company now plans to expand to 30 branches by 2011.<ref name="bio"/>


Rami Levi introduced supermarket [[price war]]s to Israel<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000308622 |title=Price War Bursts Out Between Israeli Supermarkets |publisher=[[Globes]] |date=11 February 2008 |accessdate=28 June 2011 |last=Hayut |first=Ilanit}}</ref> by promoting low prices and discounts in advance of [[Jewish holiday]]s. For one week in 2008, the chain sold milk for less than the price of water;<ref>{{cite web |url=http://koshernexus.org/general-topics/supermarket-price-wars-in-israel/ |title=Price Wars at Supermarket Chains |last=Ross |first=Idele |work=KosherToday |year=2008 |accessdate=28 June 2011}}</ref> the chain also launched two price wars on chicken which drove the price down to 0.79 shekels per kilo.<ref>{{cite web |url=http://new.jpost.com/Israel/Article.aspx?id=92142 |title=Rami Levy ain't chickening out, and at NIS 0.79 per kilo everyone's flocking |last=Paz |first=Shelly |work=The Jerusalem Post |accessdate=28 June 2011 |date=15 February 2008}}</ref><ref>{{cite web |url=http://www.theyeshivaworld.com/article.php?p=23564 |title=Israel: Round 2 of Chicken ‘War’ Between SuperSol & Rami Levi |date=16 September 2008 |accessdate=28 June 2011 |work=[[Yeshiva World News]] |last=Spira |first=Yechiel}}</ref> For [[Rosh Hashanah]] 2010, chicken, apples and honey were all sold at 1 shekel per kilo (13 cents per pound).<ref name="your">{{cite web |url=http://www.israelnationalnews.com/News/News.aspx/141777 |title=Zionist Entrepreneur Saves Jerusalem Neighborhood |work=Arutz Sheva|date=17 January 2011|accessdate=28 June 2011}}</ref> Before [[Passover]] 2011, Rami Levi Hashikma Marketing announced a 1 shekel per kilo sale on chicken, [[matzah]], matzah flour, tomato juice, and [[chocolate spread]].<ref>{{cite web |url=http://www.israelnationalnews.com/News/News.aspx/143236 |title=Pre-Passover Miracle Prices: Chickens for 13 Cents a Pound |last=Ben Gedalyahu |first=Tzvi |date=30 March 2011 |accessdate=28 June 2011 |work=Arutz Sheva}}</ref><ref>{{cite web |url=http://archive.globes.co.il/searchgl/Rami%20Levi%20again%20promotes%20one%20shekel%20chickens;%20nearby_s_hd_2L34oDZGoC5mnC30mDZCqCJ8oBcXqRMm0.html |title=Supermarket Battles Heat Up as Passover Nears: Rami Levi again promotes one shekel chickens; nearby rivals to match |last=Hayut |first=Ilanit |publisher=Globes |date=29 March 2011 |accessdate=28 June 2011}}</ref>
Rami Levi introduced supermarket [[price war]]s to Israel<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000308622 |title=Price War Bursts Out Between Israeli Supermarkets |publisher=[[Globes]] |date=11 February 2008 |accessdate=28 June 2011 |last=Hayut |first=Ilanit}}</ref> by promoting low prices and discounts in advance of [[Jewish holiday]]s. For example, for one week in 2008, the chain sold milk for less than the price of water,<ref>{{cite web |url=http://koshernexus.org/general-topics/supermarket-price-wars-in-israel/ |title=Price Wars at Supermarket Chains |last=Ross |first=Idele |work=KosherToday |year=2008 |accessdate=28 June 2011}}</ref> and drove headline prices of chicken down to 0.79 shekels per kilo.<ref>{{cite web |url=http://new.jpost.com/Israel/Article.aspx?id=92142 |title=Rami Levy ain't chickening out, and at NIS 0.79 per kilo everyone's flocking |last=Paz |first=Shelly |work=The Jerusalem Post |accessdate=28 June 2011 |date=15 February 2008}}</ref><ref>{{cite web |url=http://www.theyeshivaworld.com/article.php?p=23564 |title=Israel: Round 2 of Chicken ‘War’ Between SuperSol & Rami Levi |date=16 September 2008 |accessdate=28 June 2011 |work=[[Yeshiva World News]] |last=Spira |first=Yechiel}}</ref> For [[Rosh Hashanah]] 2010, it again grabbed headlines by offering chicken, apples and honey at 1 shekel per kilo (13 cents per pound).<ref name="your">{{cite web |url=http://www.israelnationalnews.com/News/News.aspx/141777 |title=Zionist Entrepreneur Saves Jerusalem Neighborhood |work=Arutz Sheva|date=17 January 2011|accessdate=28 June 2011}}</ref> Similar promotions were carried out for [[Passover]] 2011.<ref>{{cite web |url=http://www.israelnationalnews.com/News/News.aspx/143236 |title=Pre-Passover Miracle Prices: Chickens for 13 Cents a Pound |last=Ben Gedalyahu |first=Tzvi |date=30 March 2011 |accessdate=28 June 2011 |work=Arutz Sheva}}</ref><ref>{{cite web |url=http://archive.globes.co.il/searchgl/Rami%20Levi%20again%20promotes%20one%20shekel%20chickens;%20nearby_s_hd_2L34oDZGoC5mnC30mDZCqCJ8oBcXqRMm0.html |title=Supermarket Battles Heat Up as Passover Nears: Rami Levi again promotes one shekel chickens; nearby rivals to match |last=Hayut |first=Ilanit |publisher=Globes |date=29 March 2011 |accessdate=28 June 2011}}</ref>


In 2009 the chain's deep discounting policy began to make a dent in the market share of Israel's leading supermarket chains, Shufersal Ltd. and Blue Square-Israel Ltd.<ref name="discounts"/> Industry analysts attribute the chain's success to Levi's management strategy and marketing skills.<ref>{{cite web |url=http://www.haaretz.com/print-edition/business/is-shlomo-rodav-five-times-more-talented-than-rami-levy-1.264328 |title=Is Shlomo Rodav five times more talented than Rami Levy? |last=Amit |first=Hagai |date=8 March 2010 |accessdate=28 June 2011 |work=Haaretz}}</ref> Rami Levi Hashikma Marketing stock trades in the TA-75 and TA-100 indexes at a market cap of NIS 1.77&nbsp;billion (2011).<ref name="Noam"/>
In 2009 the chain's deep discounting policy began to make a dent in the market share of Israel's leading supermarket chains, Shufersal Ltd. and Blue Square-Israel Ltd.<ref name="discounts"/> Industry analysts attribute the chain's success to Levi's management strategy and marketing skills.<ref>{{cite web |url=http://www.haaretz.com/print-edition/business/is-shlomo-rodav-five-times-more-talented-than-rami-levy-1.264328 |title=Is Shlomo Rodav five times more talented than Rami Levy? |last=Amit |first=Hagai |date=8 March 2010 |accessdate=28 June 2011 |work=Haaretz}}</ref> Rami Levi Hashikma Marketing stock trades in the TA-75 and TA-100 indexes at a market cap of NIS 1.77&nbsp;billion (2011).<ref name="Noam"/>

Revision as of 15:53, 29 June 2011

Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.
Company typePublic company
TASE: RMLI
IndustrySupermarket
Founded1976
FounderRami Levi
Headquarters
Jerusalem
,
Israel
Number of locations
21
Key people
Rami Levi (Owner and CEO)
Adina Levi (CFO)
Shmulik Levi (Vice President Operations)
RevenueNIS 1.81 billion (2011)[1]
NIS 115 million (2010)[2]
NIS 92.47 million (2011)[1]
Total assetsNIS 643 million (2010)[2]
Total equityNIS 500 million (2010)[3]
OwnerRami Levi
Number of employees
3,000[4]
SubsidiariesYafiz clothing stores
Rami Levi Hashikma Marketing Communications Ltd.
Websiterami-levy.co.il (English website)

Rami Levi Hashikma Marketing (Hebrew: רמי לוי שיווק השקמה, Rami Levi Shivuk Hashikma) is the third largest Israeli retail supermarket chain, behind Shufersal Ltd. and Alon Holding–Blue Square Ltd., with annual revenues of NIS 1.81 billion.[1] Founded in 1976 on Rehov Hashikma (Sycamore Street) in the Mahane Yehuda Market district, it is Israel's first discount store[3] and claims to slash the price of the average basket of goods by as much as 20%.[5][3] The company went public on the Tel Aviv Stock Exchange in 2007 and has increased its sales volume and number of stores each year since.

Rami Levi operates a chain of 21 discount supermarkets in Central and Northern Israel employing 3,000. It also distributes wholesale to 450 stores in and around Jerusalem.[6] The company has diversified into retail clothing sales, real estate, and cellular communications.

History

Hashikma Street in the Mahane Yehuda Market district of Jerusalem. Rami Levi's first store is fourth from the right.

Rami Levi Hashikma Marketing was founded by Rami Levi (born 1955, Jerusalem, Israel[3][7]), one of six children of an Israeli-born father and Iraqi-born mother. He grew up in poverty in a one-room tin shack[7] with a shared kitchen and bathroom in the Nachlaot neighborhood.[3] Shopping with his mother in the nearby Mahane Yehuda Market (the "shuk"), Levi came to the realisation that there were price differentials available to wholesalers, who preferred selling to retailers to dealing with individuals. Upon completing his army service in 1976,[8] he rented a 40 square metres (430 sq ft) stall on Hashikma Street, one of the commercial streets of the shuk, and opened a store selling goods at wholesale prices directly to individuals. He named his new company after himself and the street he was located on.[3]

Rami Levi's first store on Hashikma Street.

Levi said he initially bought goods from a wholesaler and sold them at cost. After three months, he bought goods directly from the importer whilst maintaing his wholesale selling prices, thus becoming the first discount store in Israel. In the early 1980s Levi opened his second, 80 square metres (860 sq ft) store.[3]

The company, which had eight branches and a market valuation of NIS 430 million, made its initial public stock offering in May 2007 on the Tel Aviv Stock Exchange.[9] Within two years, the number of branches doubled to 16. The company now plans to expand to 30 branches by 2011.[3]

Rami Levi introduced supermarket price wars to Israel[10] by promoting low prices and discounts in advance of Jewish holidays. For example, for one week in 2008, the chain sold milk for less than the price of water,[11] and drove headline prices of chicken down to 0.79 shekels per kilo.[12][13] For Rosh Hashanah 2010, it again grabbed headlines by offering chicken, apples and honey at 1 shekel per kilo (13 cents per pound).[14] Similar promotions were carried out for Passover 2011.[15][16]

In 2009 the chain's deep discounting policy began to make a dent in the market share of Israel's leading supermarket chains, Shufersal Ltd. and Blue Square-Israel Ltd.[5] Industry analysts attribute the chain's success to Levi's management strategy and marketing skills.[17] Rami Levi Hashikma Marketing stock trades in the TA-75 and TA-100 indexes at a market cap of NIS 1.77 billion (2011).[9]

Locations

Rami Levi supermarkets are located in several Jerusalem neighborhoods as well as in Mevasseret Zion, Gush Etzion, Beitar Ilit, Modiin, Ramat Gan, Zichron Yaakov, Pardes Hanna, Netanya, Afula, Kastina, Tiberias, Nesher, Rosh Haayin, and Haifa.[18] There are also two locations in the Judea and Samaria Area, one in Shaar Binyamin Industrial Park and one in Mishor Adumim.[7] Levi's stores in the West Bank are often held up as a model of Arab-Jewish coexistence, as Arabs and Jews shop and work there side-by-side.[4][19]

In 2010 the locations in Judea and Samaria, which do a brisk business from thousands of Palestinian shoppers – including top Palestinian Authority officials[20][7][19] – and which are staffed by both Arabs and Jews,[19][7] was targeted by an anti-Israeli goods campaign by the PA. For several months the PA attempted to discourage Arabs from shopping at Rami Levi supermarkets, culminating in an official boycott of the chain in September 2010.[20] At the same time, there were concerns among some Orthodox Jews in the area regarding security and especially the issue of intermixing between the male Arab shelving staff and the female Jewish cashiers. All these issues have been largley put aside by the local populations as winessed by the multi-ethnic crowds that fill the stores on any given afternoon.[21]

Diversification

In-house brand and outlet stores

Rami Levi Hashikma Marketing has its own house brand called Hamotag (Hebrew: המותג, lit. "the brand"),[14] which offers food, detergents, and toiletries.[1]

Some stores have "Pizza Hashikma" and "Burger Hashikma" outlets which sell fast food at a discount.[22][23]

The chain also offers an in-house store called Yafiz which offers low-priced clothing and shoes for men, women, teens, children and infants.[24]

Real estate development

In 2000 Rami Levi purchased a plot in the Har Nof neighborhood of Jerusalem zoned for 100 housing units. He also invested 145.5 million NIS in land for 265 apartments in the Holyland complex. In 2008, he bought the rights to SBH Sha'ar L'Yerushalayim for 15 million NIS, making him the controlling shareholder of a company that owns land on Hebron Road zoned for 240 housing units, a hotel, and commercial and industrial space. In 2009 he bought Delek Real Estate's share of the Jerusalem Railway Station compound on Derech Beit Lehem for about 13 million; the site is zoned for 1000 housing units. In 2010 Levi partnered with Amikam Ben-Zvi and Housing and Construction Real Estate to buy 13 million NIS worth of land in the Givat HaMatos area in Jerusalem, also zoned for 1000 housing units. However, Levi blames slow progress on developing the company's recent acquisitions on bureaucratic red tape by planning authorities.[3]

In 2011 Levi made headlines with his bid to take over the development of the Nofei Tzion luxury housing product in the East Jerusalem neighborhood of Jabel Mukaber after developer Digal made a debt settlement with creditors. When the identity of the competing bidder – Arab-American businessman Bashar Masri – was announced in the Israeli newspapers, nearly 77 percent[25] of bondholders voted to negotiate with the group of Jewish investors headed by Levi.[26]

Rami Levi Hashikma Marketing owns 65% of the land on which its supermarkets stand, including approximately 35,000 square metres (380,000 sq ft) of land in Mevasseret Zion, Modiin, Gush Etzion, and Pardes Hanna. Unlike other companies which apply for bank loans to purchase commercial real estate, Rami Levi Hashikma Marketing uses its own equity, which is estimated at 500 million NIS.[3]

Cellular communications

In September 2010 Rami Levi Hashikma Marketing became the fourth company in Israel to receive a mobile virtual network operator license from the Israel Ministry of Communications.[27] The company previously announced in a 2010 statement to the Tel Aviv Stock Exchange that upon receiving this license, it would open a new subsidiary, Rami Levi Hashikma Marketing Communications Ltd., and sell advanced mobile telephone services in its supermarkets.[28] In February 2011 Rami Levi signed an agreement with Israeli mobile phone provider Pelephone, allowing the supermarket chain to use Pelephone's infrastructure to provide cellular phone services.[29]

Personal

Levi employs many family members in his business, including his wife, Chief Financial Officer Adina Levi, and Vice President of Operations Shmulik Levi.[30] Rami and Adina Levi have four children and live in the Gilo neighborhood of Jerusalem.[3] Levi is also a member of the Jerusalem City Council as part of Mayor Nir Barkat's Jerusalem Will Succeed faction.[31]

References

  1. ^ a b c d "Company description". The Financial Times Ltd. 2011. Retrieved 28 June 2011.
  2. ^ a b "Rami Levi Chain Stores Hashikma Marketing 2006 Ltd". Tel Aviv Stock Exchange. Retrieved 28 June 2011.
  3. ^ a b c d e f g h i j k Nahum-Halevy, Ranit (8 March 2010). "Rami Levy blames high housing prices on ILA". Haaretz. Retrieved 28 June 2011.
  4. ^ a b Friedson, Felice; O'Sullivan, Arieh (22 September 2010). "Supermarkets = Superpeace". The Media Line. Retrieved 28 June 2011.
  5. ^ a b "Rami Levi Banks on Deep Discounts: The Israeli supermarket chain, plans to boost its market share by mid-2011 with new stores and price cuts". Bloomberg. 25 August 2009. Retrieved 28 June 2011.
  6. ^ "About". rami-levi.co.il. Retrieved 28 June 2011.
  7. ^ a b c d e Abu Toameh, Khaled (5 July 2010). "PA Warns Palestinian Shoppers". The Jerusalem Post. Retrieved 28 June 2011.
  8. ^ Veeder, Nechama (15 August 2003). "Shop Talk". The Jerusalem Post. Retrieved 28 June 2011.
  9. ^ a b Bar, Noam (19 May 2011). "Why did Rami Levi stock rise so much: Shoppers, or rightists?". Haaretz. Retrieved 28 June 2011.
  10. ^ Hayut, Ilanit (11 February 2008). "Price War Bursts Out Between Israeli Supermarkets". Globes. Retrieved 28 June 2011.
  11. ^ Ross, Idele (2008). "Price Wars at Supermarket Chains". KosherToday. Retrieved 28 June 2011.
  12. ^ Paz, Shelly (15 February 2008). "Rami Levy ain't chickening out, and at NIS 0.79 per kilo everyone's flocking". The Jerusalem Post. Retrieved 28 June 2011.
  13. ^ Spira, Yechiel (16 September 2008). "Israel: Round 2 of Chicken 'War' Between SuperSol & Rami Levi". Yeshiva World News. Retrieved 28 June 2011.
  14. ^ a b "Zionist Entrepreneur Saves Jerusalem Neighborhood". Arutz Sheva. 17 January 2011. Retrieved 28 June 2011.
  15. ^ Ben Gedalyahu, Tzvi (30 March 2011). "Pre-Passover Miracle Prices: Chickens for 13 Cents a Pound". Arutz Sheva. Retrieved 28 June 2011.
  16. ^ Hayut, Ilanit (29 March 2011). "Supermarket Battles Heat Up as Passover Nears: Rami Levi again promotes one shekel chickens; nearby rivals to match". Globes. Retrieved 28 June 2011.
  17. ^ Amit, Hagai (8 March 2010). "Is Shlomo Rodav five times more talented than Rami Levy?". Haaretz. Retrieved 28 June 2011.
  18. ^ "סניפים". rami-levy.co.il. Retrieved 28 June 2011. {{cite web}}: Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)
  19. ^ a b c AFP (4 July 2010). "Settlers worry about impact of Palestinian boycott". Asia Pacific News. Retrieved 28 June 2011.
  20. ^ a b "PA Declares Official Boycott of Rami Levi". Arutz Sheva. 21 September 2010. Retrieved 28 June 2011.
  21. ^ "Groceries and politics". shimshonit.com. 2010-07-04. Retrieved 2011-29-2011. {{cite web}}: Check date values in: |accessdate= (help)
  22. ^ "פיצה השקמה" (in Hebrew). Rami Levi. Retrieved 28 June 2011. {{cite web}}: Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)
  23. ^ "בורגר השקמה" (in Hebrew). Rami Levi. Retrieved 28 June 2011. {{cite web}}: Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)
  24. ^ "יפי'ז" (in Hebrew). Rami Levi. Retrieved 28 June 2011. {{cite web}}: Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)
  25. ^ Shauly, Avi (12 January 2011). "Confirmed: Rami Levy buys Digal's Nof Zion project". Globes. Retrieved 28 June 2011.
  26. ^ Ferziger, Jonathan (3 February 2011). "Netanyahu's Economic Peace Tested by Palestinian Construction Roadblocks". Bloomberg. Retrieved 28 June 2011.
  27. ^ Hayut, Ilanit (6 September 2010). "Supermarket Chain Rami Levi To Receive MVNO License: Rami Levi will become the fourth company to receive an MVNO license". Globes. Retrieved 28 June 2011.
  28. ^ Friedman, Ron (8 September 2010). "Honey, pick up some milk and a cellphone". The Jerusalem Post. Retrieved 28 June 2011.
  29. ^ Scheer, Steven (15 February 2011). "Bezeq's Pelephone inks another mobile operator deal". Reuters. Retrieved 28 June 2011.
  30. ^ Sviderski, Vadim; Azran, Eran (25 March 2011). "Rami Levi profits jump in 2010 as new supermarkets open". Haaretz. Retrieved 28 June 2011.
  31. ^ "Nof Zion sold to Rami Levy, Australian Jewish businessman". Globes. 1 December 2011. Retrieved 28 June 2011.
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