Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) will offer discounts of up to 20% on its products to Rami Levy customers as part of its corporate battle with supermarket chain Shufersal Ltd. (TASE:SAE), after the latter placed signs in its stores on Wednesday calling on clients to buy products from Unilever's competitors.
The discounts on Unilever goods will range from 10-20% for a wide variety of its brands, including Telma, Knorr, AXE, Rexona, Lipton, Hellmann's, 778, Cif.
In a Thursday conversation with "Globes", Rami Levy explained how the latest discounts were created. "I went to them and asked to receive more comprehensive discounts. They said they would agree if I pass on the savings to the consumers and that is what will happen. We reached an agreement. The customers will be happy; I will be happy."
"Globes": Why are the discounts exclusive to your chain?
"I believe that everyone will now ask the same of Unilever; we took care of our shoppers," he answered.
The latest conflagration in the supermarket wars was stoked on Wednesday when Shufersal posted signs against Unilever across its branches: "We are making every effort to lower prices for the consumer. Given a disagreement with Unilever over the prices of its products, there may be a shortage of this supplier's goods in our branches. We invite our customers to purchase comparable products from other brands and the Shufersal brand."
As first published in "Globes", the Unilever-Shufersal war began when Shufersal CEO Itzik Abercohen decided to drop certain Unilever products from the chain's shelves due to declining commercial conditions. In retaliation, Unilever halted all supply of its products to Shufersal.
Industry officials claim the feud was initiated after Shufersal demanded a one-sided obligation setting higher profit margins than previously agreed by the two firms. On the other hand, Shufersal claims time and again that it is battling with suppliers over their margins, and its CEO has declared repeatedly that suppliers will bear the costs of lowering prices.
Last April, Shufersal sent a letter to its suppliers in which it announced it had increased its service charge and distribution fee on top of an increase in the minimum wage.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2015
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