The Israeli food market is accustomed to promotions, coupons, and occasional discounts, but recently an unusual consumer event took place. As part of a price survey on fresh and frozen chicken and fish, it was found that Carrefour offers the cheapest basket of products in Israel. This is not a minor discount or temporary reduction, but a move that changes the pricing structure in the industry.
The price that highlighted this move was for fresh chicken thighs at NIS 7.90 per kilogram—a price not seen in Israel for many years, if at all in the past decade. This price challenges the existing level of competition and raises questions about cost structures, pricing strategy, and implications for consumers.
This move does not stand alone. Carrefour has recently been following a clear pattern. After offering fresh doughnuts at NIS 1.90 and a similar promotion on yellow cheese at NIS 1.90 per 100 grams, the initiative now extends to a category that is more significant for Israeli consumers.
The food market in Israel is characterized by a deep culture of promotions. Chains know that local consumers look for a sharp price, not just a shopping experience. Therefore, it is possible that Carrefour is adopting a strategy combining an advanced shopping experience with exceptionally low prices that generate media attention and high customer traffic.
The price analysis revealed in the survey shows significant gaps. At Rami Levy and Osher Ad, fresh chicken prices are around NIS 20 per kilogram. At Yohannoff, the price is around NIS 25. In some chains, the price even climbs to NIS 35 per kilogram.
Against this backdrop, a price of NIS 7.90 per kilogram places Carrefour far below any other player. The gap is not only large but exceptional, requiring an examination of the economic model of chains in the industry.
Why now?
It is unclear whether this is a loss-leading pricing strategy to attract customers, a result of international purchasing power, or part of a deliberate plan to change the chain’s image in Israel. However, Carrefour’s strategy appears to be shifting.
It is possible that the chain understands that in Israel, it cannot rely solely on international branding, innovation, or private labels. The local market demands aggressive entry prices for basic products—items that generate daily traffic and influence the consumer’s overall perception of price.
When a leading product like fresh chicken is offered at such a price, other chains find it hard to remain indifferent. Competition in the industry generally keeps chicken and fish prices within certain ranges, but Carrefour’s price breaks these conventional limits.
Large chains will now have to decide whether to join the price war or stick to their existing policies. Every decision will impact profitability models and consumer behavior in the coming months.
The central question that remains open is whether this is a one-time move or the beginning of a permanent strategy. If it is only a temporary initiative, it is still expected to put pressure on the market for a certain period. If it is a broader strategy, we may see a new wave of deep competition over the basic product basket in Israel.
Such a move could lead to a new price level in the industry, or alternatively create a reality where chains will need to redefine their cost models, differentiation, and distribution.