Israel-based supermarket chain Shufersal has entered into a memorandum of understanding to set up a network of stores across the country for Dutch food retail brand SPAR.
As part of the deal, Shufersal will invest more than ILS10m ($2.9m) to open as many as ten SPAR franchisee stores within the next three years.
Other stores operated by Shufersal will also exclusively sell SPAR products, through the deal.
The deal awaits greenlight from SPAR and of Israel’s competition authority.
In addition, Shufersal will become a shareholder in a corporation controlled by Israel-based businessman Amit Zeev, which will sign a licence agreement with SPAR.
The agreement will see the establishment of SPAR stores in Israel along with the right to import and market around 10,000 goods under the private SPAR label, among others.
Zeev will join as the chief executive of the new business.
Zeev said: “I have conducted negotiations with several retail chains in Israel and SPAR is the largest and most professional, and I am happy and proud of the partnership.
“I am confident that together we will be able to bring about a real change, to give the customer a new shopping experience that includes the quality of products and service that we all know from Europe alongside prices that surprise every Israeli when he visits a supermarket across the continent.”
In July this year, Zeev said that he had reached a preliminary deal to open SPAR stores in Israel, reported Reuters.
Shufersal CEO Ori Watermann said: “Shufersal is examining and promoting a number of growth engines, one of which is cooperation with an international network.
“SPAR products will be marketed at fair prices that are significantly lower than usual in Israel, thus contributing to lowering the cost of living in Israel.”