SUPERMARKET PRICE WARS IN ISRAEL

When supermarkets have price wars, consumers win big time. In Israel, for many weeks now, there has been a price war going on with Rami Levi and other supermarkets. This article comes from Kosher Today:

Price Wars at Supermarket Chains
Tel Aviv… by Idele Ross, KosherToday Israeli Bureau Chief… Food shopping again got more expensive. The monthly index of food prices jumped over one percent because of the severe damage sustained by locally produced fruits and vegetables during the recent cold wave.

The price hikes gave way to an unprecedented price war in Israel. Last week it was a poultry battle as Rami Levi, one of the largest supermarket chains in Israel dropped the price of fresh chicken from around 12 shekels ($3.50) a kilo to under one shekel for shoppers spending more than 150 shekels in groceries. The strategy was copied by the Supersol chain. Both chains reported long lines and waits of at least a half an hour. This week the Rami Levy chain is offering milk for less than the cost of water. A liter sack of milk is now 49 agarot instead of 4.70. Loaves of standard bread are this week selling for only 39 agarot. Supersol is offering similar deals to its customers. A liter of milk there is selling for 29 agarot. Ronit Kan, who supervises business cartels at the Trade Ministry, told Yediot Achronot newspaper that at this time the competition between the two major chains is a healthy one and the government has no intention of interfering.