Giant retail companies to shake up Israeli market
In an effort to lower prices, the Israeli government is encouraging companies such as Carrefour and AliExpress into the domestic market.
France's Carrefour is starting to sell some of its products in Israel, and Israeli consumers are eager to find out whether these products are indeed cheaper than similar local-made ones.
The arrival of Carrefour, first announced last March, was accompanied by much fanfare and hailed as an important step in forcing local competitors to reduce prices. On July 24, Prime Minister Yair Lapid warned local supermarkets, “Whoever decides to raise prices irresponsibly could wake up one morning to find themselves in competition they were not expecting. This government believes in competition and in opening markets, and it will not hesitate to take action.”
Elections in a time of economic crisis, or at the very least price hikes and inflation, tend to bode ill for a government that wants to stay in power. It is certainly true in Israel. The economy looks increasingly like it will be a major issue in the upcoming Knesset elections scheduled for Nov. 1.
Presently, the conditions don’t look promising for the outgoing government. The consumer price index for July rose by 1.1% and the annual inflation rate exceeded 5%, the highest it has been since 2008. Housing costs are one of the most serious problems facing the Israeli economy. In 2022 alone, they rose by 17.8%.
