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Jerusalem Life

| Shufersal to close Be pharmacy branches

Janglo News    
Wednesday, 04 December 10:36 AM
It has been two years since supermarket chain Shufersal acquired the New Pharm chain from Hamashbir Lazarchan for NIS 126 million, and then proceeded to upgrade and rebrand the chain's branches under the Be brand. Shufersal will begin closing money-losing Be branches in 2020, sources inform "Globes." As far as is known, five branches will be closed in the coming years in order to offload poor money-losing locations. The measure will reduce the Be chain's revenue, but contribute to its profit.

It is probable that the branches to be closed will be those in inferior locations operated by New Pharm when it was owned by Hamashbir Lazarchan. Shufersal therefore refrained from substantial investment in them following the acquisition; only the signs were changed, and no extensive renovations were carried out. In contrast to branches of market leader Super-Pharm, which has consistently selected strategic locations, and became an anchor in many commercial centers, New Pharm compromised on poor locations, in some of which it consistently lost money.
         
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