Rami Levi Chain Stores Hashikma Marketing 2006 Ltd

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

Levy said he initially bought goods from a wholesaler and sold them at cost. After three months, he bought goods directly from the importer whilst maintaining his wholesale selling prices, thus becoming the first discount store in Israel. In the early 1980s Levy opened his second, 80 square metres (860 sq ft) store. He opened his first supermarket in Talpiot in 1992; he has since opened two other supermarkets in Talpiot to accommodate business.

In May 2007 the company, with eight branches and a market valuation of NIS 430 million, made its initial public stock offering on the Tel Aviv Stock Exchange. Within two years, the number of branches doubled to 16.

Rami Levy introduced supermarket price wars to Israel 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, and drove headline prices of chicken down to 0.79 shekels per kilo. For Rosh Hashanah 2010, it again grabbed headlines by offering chicken, apples and honey at 1 shekel per kilo (13 cents per pound). Similar promotions were carried out for Passover 2011.

In 2009 the chain's discounting policy began to make a dent in the market share of Israel's leading supermarket chains, Shufersal Ltd. and Blue Square-Israel Ltd. Industry analysts attribute the chain's success to Levy's management strategy and marketing skills. Rami Levy Hashikma Marketing stock trades in the TA-75 and TA-100 indexes at a market cap of NIS 1.77 billion (US$474 million)(2011).

Locations

There are currently 44 Rami Levy supermarkets, located in several Jerusalem neighborhoods as well as in Afula, Akko, Ashdod, Ashkelon, Bat Yam, Beersheba, Beit Shemesh, Eilat, Hadera, Haifa, Holon, Kadima, Karmiel, Kastina, Kfar Saba, Kiryat Shmona, Lod, Mevasseret Zion, Modiin, Nesher, Netanya, Nahariya, Pardes Hanna, Petah Tikva, Ra'anana, Ramat Gan, Ramat Hahayal, Rehovot, Rishon LeZion, Rosh HaAyin, Tiberias, Yavne, and Zichron Yaakov. There are also five locations in the West Bank: Beitar Illit, Gush Etzion, Sha'ar Binyamin, Ariel, and Mishor Adumim. Levy's stores in the West Bank are often cited as a model of Arab-Jewish coexistence, as Arabs and Jews shop and work there side-by-side.

In 2010, the locations in West Bank, which attract thousands of Palestinian shoppers and top Palestinian Authority officials, and which are staffed by both Arabs and Jews, were targeted by the PA's anti-Israeli goods campaign. For several months the PA attempted to discourage Arabs from shopping at Rami Levy supermarkets, culminating in an official boycott of the chain in September 2010. 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 largely put aside by the local populations, as witnessed by the multi-ethnic crowds that fill the stores on any given afternoon.

In-house brand and outlet stores

Rami Levy Hashikma Marketing markets a house brand called Hamutag (Hebrew: המותג, lit. "the brand"), which includes food, detergents, and toiletries. Some stores have "Pizza Hashikma" and "Burger Hashikma" outlets which sell fast food at a discount. The chain also includes an in-house store called Yafiz which stocks low-priced clothing and shoes for men, women, teens, children and infants.

Criticism

Involvement in Israeli settlements

On 12 February 2020, the United Nations published a database of companies doing business related in the West Bank, including East Jerusalem, as well as in the Golan Heights. Rami Levy Hashikma Marketing was listed on the database on account of its activities in Israeli settlements in these occupied territories, which are considered illegal under international law.

Nepotism

Levy employs 20 family members in his business, including his wife, Chief Financial Officer Adina Levy, and Vice President of Operations Shmulik Levy, and many of the stores are managed by relatives.