JERUSALEM (VINnews) — In an attempt to battle the rising cost of living in Israel and increase competition in the food market, Finance Minister Bezalel Smotrich has requested from wholesale giant Costco that it consider entering the Israeli market.
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In a letter published on the INN website which was addressed to Cosco CEO Walter Jelinek and Chairman of the Board Hamilton James, the minister writes: “The government of Israel has set for itself several objectives, one of which is to reduce the cost of living and increase competition in the Israeli retail food market.”
Smotrich states that the government believes inviting global companies to enter the local market is a significant way to do so.
“Given your scale, leadership, and global activity in the field of food retail, we would like to interest you in entering the Israeli market,” the letter continues.
“We view that as a mutually beneficial opportunity for both your company, which will gain presence in a new attractive market, and for the people of Israel, who will enjoy a reduction in the cost of living through increased competition,” the minister concludes, adding that he will be happy to discuss the matter on his next trip to the US.
Costco is the largest wholesale retailer in the US is considered the second largest food chain after Walmart. The retail chain has stores in the US, Canada, Australia, Japan, Spain and other countries worldwide.
IMHO this feels like a nonstarter. Aside from complying with atypical local rules , regulations and customer preferences it is a relatively small market with stretched supply chains.
It is more likely they make a quasi relationship with a large local firm.
Remember that any increase in sales through a Costco would mean less employment and wages in a smaller business.
More will be returned than sold.
Hope it works out better than Amazon. Amazon in eretz Yisroel is very inferior to what we have here, in selection, prices, and punctual deliveries.