A Tel Aviv University study published in Calcalist found that Carrefour reduced prices of 'Sal of Israel' basket items by up to 35% in exchange for a 50 million shekel publicly funded campaign, but raised prices in dozens of other categories, potentially eroding consumer savings. The study also found that competing chains barely reduced prices.
A new Tel Aviv University study, published in Calcalist, reveals that Carrefour's participation in the government's 'Sal of Israel' cheap basket program came with a mixed pricing strategy. The chain reduced prices on basket items by up to 35%—a move tied to a 50 million shekel publicly funded campaign—but simultaneously raised prices in dozens of other categories, a tactic that may offset savings for consumers. Competing supermarket chains, according to the study, barely reduced their own prices, undermining the program's goal of broad market-wide price relief.
The study lands amid ongoing government efforts to address food prices, which have been a focus of the Knesset Economics Committee and the Economy Ministry. As The Zioneer previously reported, Economy Minister Nir Barak had touted the program's reach, stating that over 800,000 Israelis had purchased from the basket. The Finance Ministry has also been pressed on why food prices have not fallen in line with the dollar's decline. The new study adds a critical dimension to the debate, suggesting that the program's net benefit to consumers may be limited.
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