The “King Store”, an Arab-Israeli-owned supermarket chain that has 22 branches across Israel's Arab communities, has announced its intention to reach additional cities in Israel’s center, including Ramla, Kfar Saba, Netanya, and other areas in order to appeal to the Jewish audience. It is the first time a major Arab-owned food chain has ventured into the mainstream and is a sign of the rapid changes happening in Israeli society.
"We don't claim to be the cheapest chain," the chain's CEO Majdi Kathani announced during his statement on Monday. "The chain works in a different way. Instead of giving the consumer only the standard products that belong to five suppliers in Israel, and are found on all shelves, we give a localized stage to every manufacturer that meets the standards and requirements of the Israeli Ministry of Health." Most Israeli products are in fact manufactured or imported by a small group of companies that many in Israel have accused of running a monopoly.
רשת השיווק קינג סטור מהמגזר הערבי הודיעה כי תפתח סניפים במגזר היהודי בגוש דן, כפר סבא ונתניה.
— חדשות המוקד (@hamoked_il) January 23, 2023
Kathani claims that while the products of the big companies dominate 57 percent of the shelf, in King Store you will find the main brands in only 41 percent of the market. "We earn less for each small producer, because we believe that we are not just a business network, but act according to values to promote businesses and small producers." The business model is noble as it incentivizes small manufacturers to invest in packaging and distribution in exchange for higher revenue.
"On our shelves, you can find all the products you know and other products that you won't see in other supermarkets. The chain also has plenty of soft drinks and carbonated drinks specially imported from Turkey in a variety of special flavors, chocolates and various sweets," adds Kathani.
Due to religious and moral objections, alcoholic beverages are not sold in the chain's stores. In addition, it advocates for a healthy lifestyle and therefore made a strategic decision a few years back not to sell tobacco products in the chain's branches. "In order to lower the percentage of smoking, especially in the Arab sector of Israel, we do not sell cigarettes," Kathani boasts. "Although this decision puts me at risk because today's consumer expects to get everything in their supermarket, and he may decide not to buy from me, but we believe in the decision and stand behind it."
The King Store chain was established in 2010 by a small family of hard-working Muslim citizens of Israel and quickly became a new competitor in the supermarket market of Israel. The company's first branches operated mainly in the northern region and among the Arab sector, and today are located nationwide in Beer Sheva, Rosh Ha'ayin, Kalansewa, Dalit Carmel, Haifa, Acre, Karmiel, Nof HaGalil, and other locations.
The strategic plan presented in a press conference by the company includes a massive plan of entry into the broad retail market in Israel, called “King Store 2030”. As part of the plan, the network intends to open several branches in the coming years, with a total investment of 100 million NIS.
שימו לב ל-2 ידיעות שפורסמו כמעט באותה הדקה-
— יוסף חדאד - Yoseph Haddad (@YosephHaddad) July 12, 2020
משמאל: בערבית רשת המזון קינג סטור מצטרפת לחרם על טחינת אל ארז ומסירה אותה מהמדפים.
מימין: בעברית רשת קינג סטור מפיצה מסר מכיל ונגד אפליה, ומשאירה את הטחינה על המדפים.
למדו מאיימן עודה... pic.twitter.com/aQt3ulgtLq
While much of the company's strategy is unique, perhaps the one that stands out the most is importing products from Palestinian Authority areas. The company is working with manufacturers in Nablus, and other cities to help them comply with Israeli health regulations. The intent is to show that economic cooperation between Palestinian citizens and Israelis can help bridge the divide that currently exists. As it stands, the Palestinian Authority is the single biggest challenge to solving the problems, by helping companies work directly with Israeli corporations while complying with Israeli regulations, it can open up a new channel of cooperation and mutual respect.
