Simhon: Retailers do compete, but to detriment of consumers

21.07.2011                      19.Tammus, 5771

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Simhon: Retailers do compete, but to detriment of consumers

Secret report on profit margins in Israel's retail industry shows them to be ‘among the highest in the world,’ says Industry Minister.

A secret report on profit margins in Israel's retail industry shows them to be "among the highest in the world," Industry Minister Shalom Simhon said yesterday. In short, he explained, consumers are shouldering the full cost of the supermarket chains' frenzied race to open new branches.
"We're living in a bubble" of unreality, the minister said in a conversation with TheMarker in which he discussed the existence – if not the details – of the secret report, prepared by an Industry, Trade and Labor Ministry committee. The chains are opening new branches like mad, he said, and the unfettered competition could well cause one of them to implode, just as happened to Clubmarket. That chain went bankrupt and was bought by Super-Sol in 2005….