Victory Supermarket Chain (TASE: VCTR) CEO Eyal Ravid is in talks to sell the seven Tel Aviv branches of the Victory City sub-chain, which was only opened two years ago, to other companies. The companies interested in buying Victory City are not large chains by three small companies.
The companies will be prepared to operate the Victory City branches on Friday nights and Saturdays, which Ravid is not prepared to do, thus allowing rivals to reap the profits instead.
Victory City has seven branches in central Tel Aviv in Ahad Ha'am, Yehuda Halevy, Weizmann, Allenby, Rothschild, Margoza, and Florentin Streets.
In July 2021, Ravid announced that he planned opening 50 Victory City branches in the Tel Aviv Metropolitan region on the AM:PM neighborhood format to compete with rivals like Shufersal Express, Super Yuda, and Tiv Taam. But in August, Ravid announced that he was reconsidering the chain's options after Victory City contributed to a 0.4% decline in operational profits in the first half of 2023.
With competition growing in Tel Aviv, Victory prefers to focus resources on large branches in more peripheral locations. In 2024, Victory plans to open four such branches - 1,000 square meter stores in Tel Mond and Harish, a 2,000 square meter store in Emek Hefer, and a more than 3,000 square meter store in Dimona.
Published by Globes, Israel business news - en.globes.co.il - on December 13, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.