Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.

The “Rami Levy HaShikma Marketing” continues to bolster its leading position through advanced technologies in branches and the expansion of its online services and its sales floor operations, placing smart cash registers alongside self-service cash registers that save purchase time at the branches, ugrading the “Rami Levi’s Digital Purse” application, opening additional big branches in new cities and launching a modern logistics and technology centers in central and southern Israel, which guarantee that products reach the customers at the highest level of freshness.
Rami Levy started out in 1976, as a small store in the Mahne Yehudah Market in Jerusalem. The store owner, Rami Levy, used to join his mother in her shopping trips, and noticed that each product has actually two prices – a high retail price for consumers and a low wholesale price from which only businesses that buy large quantities benefit. Levy decided to change the situation as to benefit consumers, and set an unusual rule in the little store he founded in HaShikma St. at the edge of the market – wholesale prices for consumers.
Success came quickly. In 1981 Levy opened another store in Jerusalem, and in 1992 he opened the chain’s first mega-store. Levy continued to expand, and built a chain of large discount stores. In 2007, the company went public on TASE.
Nowadays, the chain operates 60 branches from Kiryat Shmona in the north to Eilat in the south, with 6 more branches expected to open over the next year. Levy, continues to serve as the chain’s CEO and owner.
Last January, Yafit Atias was appointed co-CEO.

The Competitive Environment

The Israeli food retail market comprises three major players and dozens of small and medium chains. “Rami Levy” is one of the three major players in this market.
Over the past few years, the online food retail arena demonstrated significant growth, inter alia due to extensive resources that are being invested by the large players in improving the online shopping experience, the service and the quality of the products that reach the customer. The pharma arena, into which the larger players also entered, has also demonstrated growth.

The Marketing Challenge

In addition, the chain has introduced a system of smart cash registers into its branches. These checkouts make it unnecessary to wait in line at the checkout and significantly shorten the buying process at the branch. Alongside the smart cash registers, the chain offers self-service cash registers as well as the regular full-service cash registers.
As part of its activity, Rami Levy operates the Rami Levy in the Neighborhood supermarket chain, which serves local customers and offers value prices also at the heart of cities.

The Creative Solutions

This year, Rami Levy continued to bolster its pricing arena and lead significant brand-building moves, which position him as the customer’s favorite brand. In addition, the chain significantly upgraded its online website, both regarding the user’s experience, as well as operationally, while maintaining the cheapest shopping basket in Israel, also online!

The First Digital Purse! In April 2021, the chain launched “Rami Levi’s Digital Purse” application, which offers an innovative, convenient and fast payment method, enabling benefits and discounts, and easy payment both in Rami Levi’s branches, as well as at Rami Levi online. “Rami Levi’s Digital Purse” is first of its kind among retail chains in Israel, “The Purse” upgrades with additional features at all times (such as enabling payment in other chains, payment for institutions such as municipalities and educational institutes).

Expansion of the Private Label. Expansion of the Private Label. The chain’s private label has over 4,000 products in all categories, with more and more products being added every month. The private label products are sold at prices that are 15%-30% lower than the competing brands, and the chain is committed to ensuring that all products are of the highest quality and standards in the market. In addition, Rami Levy’s private label offers innovation in new categories that offer products exclusively to the chain and they are promoted in collaboration with influencers such as Ron Yohananov, Pnina Rosenblum, Agam Buhbut and more. The chain believes in offering exclusive value to customers and is constantly expanding the range of exclusive products through such partnerships.

The Fruits and Vegetables Logistics Center. The chain is managing a modern logistics center, in a strategic location at the center of Israel. The center, which covers an area of 50 thousand sq.m. enables the chain to achieve world-class operational efficiency. The center includes advanced refrigeration systems and operates through a unique computerized collection system that was developed exclusively for its needs. Products are stored in compliance with the strictest standards, and the efficient and advanced distribution method includes a fleet of spacious and refrigerated trucks which guarantee that the products would reach the customers at the highest level of freshness.

Bolstering the Online Position. The chain’s online shopping website serves hundreds of thousands of customers every month, and it recently underwent optimization and personalization for improving service and deliveries.
This year, Rami Levi Online began to add “non-food” products to the variety of products, such as electronic appliances, textile products and home décor products. Simultaneously, the chain launched a large-scale, continuous move regarding marketing content in the “Big Brother” house (Reshet 13) and for the first time in the flagship program of Keshet 12 – “Master Chef”.

Making the Customer Club Accessible. Within the contest between food retailers, each food retail brand has its own member club. In Rami Levy, discounts and cheap prices are the starting point. Members benefit from an elaborate website with diverse benefits. To date, the chain joined hundreds of thousands of customers, and the club is a huge success.
An additional benefit, which is the most significant one, is presented to Rami Levi’s customers, who pay using the chain’s credit card, and enjoy thousands of significantly discounted items monthly.

Things you Didn’t Know About Rami Levy

The chain employs more than 9,000 employees.
Every branch has an active synagogue.
The communication subsidiary serves about 500,000 subscribers.
The chain employs persons with disabilities, and even received a mark of excellence for this.
The chain supplies its own fruits and vegetables to save middleman costs for the consumers.