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{{Short description|Third largest Israeli retail supermarket chain}} |
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{{Use dmy dates|date=September 2020}} |
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{{Infobox company |
{{Infobox company |
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| operating_income = NIS 115 million (US$32 million) (2010)<ref name="TASE"/> |
| operating_income = NIS 115 million (US$32 million) (2010)<ref name="TASE"/> |
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| net_income = NIS 92.47 million (US$27 million) (2011)<ref name="ft"/> |
| net_income = NIS 92.47 million (US$27 million) (2011)<ref name="ft"/> |
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| assets = NIS 643 million ($US179 million) (2010)<ref name="TASE">{{cite web |url= http://www.tase.co.il/TASEEng/General/Company/companyDetails.htm?subDataType=0&companyID=001445&shareID=01104249 |title=Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.|publisher=[[Tel Aviv Stock Exchange]] | |
| assets = NIS 643 million ($US179 million) (2010)<ref name="TASE">{{cite web |url= http://www.tase.co.il/TASEEng/General/Company/companyDetails.htm?subDataType=0&companyID=001445&shareID=01104249 |title=Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.|publisher=[[Tel Aviv Stock Exchange]] |access-date=28 June 2011}}</ref> |
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| equity = NIS 500 million (US$139 million) (2010)<ref name="bio"/> |
| equity = NIS 500 million (US$139 million) (2010)<ref name="bio"/> |
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| owner = Rami Levy |
| owner = Rami Levy |
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| parent = |
| parent = |
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| divisions = |
| divisions = |
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| subsid = Yafiz clothing stores<br />[[Rami Levy Communications]] |
| subsid = Yafiz clothing stores<br />[[Rami Levy Communications]]<br />[[Israir Airlines]] |
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| footnotes = |
| footnotes = |
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| intl = |
| intl = |
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}} |
}} |
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'''Rami Levy Hashikma Marketing''' ({{lang-he|רמי לוי שיווק השקמה}}, '''Rami Levy Shivuk Hashikma''') is the third largest [[Israel]]i retail supermarket chain,<ref name=ami/><ref name=lean>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000758167&fid=4948|title=Can Rami Levy remain lean? |
'''Rami Levy Hashikma Marketing''' ({{lang-he|רמי לוי שיווק השקמה}}, '''Rami Levy Shivuk Hashikma''') is the third largest [[Israel]]i retail supermarket chain,<ref name=ami/><ref name=lean>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000758167&fid=4948|title=Can Rami Levy remain lean? |
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|first=Ilanit|last=Hayut|date=18 June 2012| |
|first=Ilanit|last=Hayut|date=18 June 2012|access-date=14 April 2013|work=[[Globes (newspaper)|Globes]]}}</ref> behind [[Shufersal]] Ltd. and [[Alon Blue Square|Alon Holding–Blue Square Ltd.]], with annual revenues of [[Israeli new shekel|NIS]] 1.14 billion (US$401 million).<ref name=ami/> Founded in 1976 on Rehov Hashikma ([[Ficus sycomorus|Sycamore]] Street) in the [[Mahane Yehuda Market]] district, Rami Levy was Israel's first discount store.<ref name="bio"/> The chain claims to slash the price of the average basket of goods by as much as 20%.<ref name="bio"/><ref name="discounts">{{cite web |url=http://www.jpost.com/Business/BusinessNews/Article.aspx?id=152812 |title=Rami Levy Banks on Deep Discounts: The Israeli supermarket chain, plans to boost its market share by mid-2011 with new stores and price cuts |publisher=Bloomberg |date=25 August 2009|access-date=28 June 2011}}</ref> The company went public on the [[Tel Aviv Stock Exchange]] in 2007 and has increased its sales volume and number of stores each year since. Rami Levy operates a chain of 44 discount supermarkets in Central and Northern Israel. It also distributes wholesale to 450 stores in and around Jerusalem.<ref>{{cite web|url=http://www.rami-levi.co.il/languages.asp?cid=8591 |title=About |publisher=rami-levi.co.il |access-date=28 June 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110426090951/http://rami-levi.co.il/languages.asp?cid=8591 |archive-date=26 April 2011 }}</ref> The company has diversified into retail clothing sales, real estate, and cellular communications, with 20 stores of Rami Levy Communications selling [[Mobile phone|cellular phone services]] at a discount.<ref name="ami" /> |
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Rami Levy operates a chain of 44 discount supermarkets in Central and Northern Israel. It also distributes wholesale to 450 stores in and around Jerusalem.<ref>{{cite web|url=http://www.rami-levi.co.il/languages.asp?cid=8591 |title=About |publisher=rami-levi.co.il |accessdate=28 June 2011 |url-status=dead |archiveurl=https://web.archive.org/web/20110426090951/http://rami-levi.co.il/languages.asp?cid=8591 |archivedate=26 April 2011 }}</ref> The company has diversified into retail clothing sales, real estate, and cellular communications, with 20 stores of Rami Levy Communications selling [[Mobile phone|cellular phone services]] at a discount.<ref name=ami/> |
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==History== |
==History== |
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[[File:Hashikma Street, Jerusalem.jpg|225px|left|thumb|Hashikma Street in the [[Mahane Yehuda Market]] district of Jerusalem. Rami Levy's first store is fourth on the right.]] |
[[File:Hashikma Street, Jerusalem.jpg|225px|left|thumb|Hashikma Street in the [[Mahane Yehuda Market]] district of Jerusalem. Rami Levy's first store is fourth on the right.]] |
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Rami Levy Hashikma Marketing was founded by Rami Levy (born 1955, [[Jerusalem]], Israel<ref name="bio">{{cite web |url=http://www.haaretz.com/print-edition/business/rami-levy-blames-high-housing-prices-on-ila-1.264330 |title=Rami Levy blames high housing prices on ILA |last=Nahum-Halevy |first=Ranit |date=8 March 2010 | |
Rami Levy Hashikma Marketing was founded by Rami Levy (born 1955, [[Jerusalem]], Israel<ref name="bio">{{cite web |url=http://www.haaretz.com/print-edition/business/rami-levy-blames-high-housing-prices-on-ila-1.264330 |title=Rami Levy blames high housing prices on ILA |last=Nahum-Halevy |first=Ranit |date=8 March 2010 |access-date=28 June 2011 |work=[[Haaretz]]}}</ref><ref name="warn"/>), one of six children of an Israeli-born father and [[History of the Jews in Iraq|Iraqi]]-born mother. He grew up in poverty in a one-room tin shack<ref name="warn"/> with a shared kitchen and bathroom in the [[Nachlaot]] neighborhood.<ref name="bio"/> Shopping with his mother in the nearby Mahane Yehuda Market (the "shuk"), Levy came to the realisation that there were price differentials available to wholesalers, who preferred selling to retailers than dealing with individuals. Upon completing his army service in 1976,<ref name="veeder">{{cite web |url=http://www.highbeam.com/doc/1P1-78544510.html |archive-url=https://web.archive.org/web/20121106054836/http://www.highbeam.com/doc/1P1-78544510.html |url-status=dead |archive-date=6 November 2012 |title=Shop Talk |last=Veeder |first=Nechama |work=The Jerusalem Post |date=15 August 2003 |access-date=30 August 2012}}</ref> he began selling goods at wholesale prices directly to individuals out of a {{convert|40|m2}} stall that his grandfather had left to the family<ref name=ami/> on Hashikma Street, one of the commercial streets of the shuk. He named his new company after himself and the street he was located on.<ref name="bio"/> |
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Levy said he initially bought goods from a wholesaler and sold them at cost. After three months, he bought goods directly from the importer whilst maintaining his wholesale selling prices, thus becoming the first discount store in Israel.<ref name=ami/> In the early 1980s Levy opened his second, {{convert|80|m2}} store.<ref name="bio"/> He opened his first supermarket in [[Talpiot]] in 1992; he has since opened two other supermarkets in Talpiot to accommodate business.<ref name="veeder"/> |
Levy said he initially bought goods from a wholesaler and sold them at cost. After three months, he bought goods directly from the importer whilst maintaining his wholesale selling prices, thus becoming the first discount store in Israel.<ref name=ami/> In the early 1980s Levy opened his second, {{convert|80|m2}} store.<ref name="bio"/> He opened his first supermarket in [[Talpiot]] in 1992; he has since opened two other supermarkets in Talpiot to accommodate business.<ref name="veeder"/> |
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In May 2007 the company, with eight branches and a market valuation of NIS 430 million, made its initial public stock offering on the Tel Aviv Stock Exchange.<ref name="Noam">{{cite web |url=http://english.themarker.com/why-did-rami-levi-stock-rise-so-much-shoppers-or-rightists-1.362658 |title=Why did Rami Levi stock rise so much: Shoppers, or rightists? |last=Bar |first=Noam |date=19 May 2011 | |
In May 2007 the company, with eight branches and a market valuation of NIS 430 million, made its initial public stock offering on the Tel Aviv Stock Exchange.<ref name="Noam">{{cite web |url=http://english.themarker.com/why-did-rami-levi-stock-rise-so-much-shoppers-or-rightists-1.362658 |title=Why did Rami Levi stock rise so much: Shoppers, or rightists? |last=Bar |first=Noam |date=19 May 2011 |access-date=28 June 2011 |work=Haaretz}}</ref> Within two years, the number of branches doubled to 16.<ref name="bio"/> |
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[[File:Rami Levi original store.jpg|180px|right|thumb|Rami Levy's first store on Hashikma Street.]] |
[[File:Rami Levi original store.jpg|180px|right|thumb|Rami Levy's first store on Hashikma Street.]] |
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Rami Levy introduced supermarket [[price war]]s to Israel<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000308622 |title=Price War Bursts Out Between Israeli Supermarkets |work=Globes |date=11 February 2008 | |
Rami Levy introduced supermarket [[price war]]s to Israel<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000308622 |title=Price War Bursts Out Between Israeli Supermarkets |work=Globes |date=11 February 2008 |access-date=28 June 2011 |last=Hayut |first=Ilanit}}</ref> by promoting low prices and discounts in advance of [[Jewish holiday]]s. For example, for one week in 2008, the chain sold milk for less than the price of water,<ref>{{cite web |url=http://koshernexus.org/general-topics/supermarket-price-wars-in-israel/ |title=Price Wars at Supermarket Chains |last=Ross |first=Idele |work=KosherToday |year=2008 |access-date=28 June 2011}}</ref> and drove headline prices of chicken down to 0.79 shekels per kilo.<ref>{{cite web |url=http://new.jpost.com/Israel/Article.aspx?id=92142 |title=Rami Levy ain't chickening out, and at NIS 0.79 per kilo everyone's flocking |last=Paz |first=Shelly |work=The Jerusalem Post |access-date=28 June 2011 |date=15 February 2008}}</ref><ref>{{cite web |url=http://www.theyeshivaworld.com/article.php?p=23564 |title=Israel: Round 2 of Chicken 'War' Between SuperSol & Rami Levy |date=16 September 2008 |access-date=28 June 2011 |work=[[Yeshiva World News]] |last=Spira |first=Yechiel}}</ref> For [[Rosh Hashanah]] 2010, it again grabbed headlines by offering chicken, apples and honey at 1 shekel per kilo (13 cents per pound).<ref name="your">{{cite web |url=http://www.israelnationalnews.com/News/News.aspx/141777 |title=Zionist Entrepreneur Saves Jerusalem Neighborhood |work=Arutz Sheva|date=17 January 2011|access-date=28 June 2011}}</ref> Similar promotions were carried out for [[Passover]] 2011.<ref>{{cite web |url=http://www.israelnationalnews.com/News/News.aspx/143236 |title=Pre-Passover Miracle Prices: Chickens for 13 Cents a Pound |last=Ben Gedalyahu |first=Tzvi |date=30 March 2011 |access-date=28 June 2011 |work=Arutz Sheva}}</ref><ref>{{cite web |url=http://archive.globes.co.il/searchgl/Rami%20Levi%20again%20promotes%20one%20shekel%20chickens;%20nearby_s_hd_2L34oDZGoC5mnC30mDZCqCJ8oBcXqRMm0.html |title=Supermarket Battles Heat Up as Passover Nears: Rami Levi again promotes one shekel chickens; nearby rivals to match |last=Hayut |first=Ilanit |work=Globes |date=29 March 2011 |access-date=28 June 2011}}</ref> |
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In 2009 the chain's discounting policy began to make a dent in the market share of Israel's leading supermarket chains, Shufersal Ltd. and Blue Square-Israel Ltd.<ref name="discounts"/> Industry analysts attribute the chain's success to Levy's management strategy and marketing skills.<ref>{{cite web |url=http://www.haaretz.com/print-edition/business/is-shlomo-rodav-five-times-more-talented-than-rami-levy-1.264328 |title=Is Shlomo Rodav five times more talented than Rami Levy? |last=Amit |first=Hagai |date=8 March 2010 | |
In 2009 the chain's discounting policy began to make a dent in the market share of Israel's leading supermarket chains, Shufersal Ltd. and Blue Square-Israel Ltd.<ref name="discounts"/> Industry analysts attribute the chain's success to Levy's management strategy and marketing skills.<ref>{{cite web |url=http://www.haaretz.com/print-edition/business/is-shlomo-rodav-five-times-more-talented-than-rami-levy-1.264328 |title=Is Shlomo Rodav five times more talented than Rami Levy? |last=Amit |first=Hagai |date=8 March 2010 |access-date=28 June 2011 |work=Haaretz}}</ref> Rami Levy Hashikma Marketing stock trades in the TA-75 and TA-100 indexes at a market cap of NIS 1.77 billion (US$474 million)(2011).<ref name="Noam"/> |
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==Locations== |
==Locations== |
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[[File:Shaarbinyamin.jpg|300px|right|thumb|Rami Levy supermarket in [[Sha'ar Binyamin Industrial Zone|Sha'ar Binyamin]].]] |
[[File:Shaarbinyamin.jpg|300px|right|thumb|Rami Levy supermarket in [[Sha'ar Binyamin Industrial Zone|Sha'ar Binyamin]].]] |
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There are currently 44 Rami Levy supermarkets,<ref>{{Cite web|url=https://m.rami-levy.co.il/?catid=%7B589D8F30-EA33-44F8-93BB-8CB3DF6396DF%7D|title=רמי לוי שיווק השקמה|website=m.rami-levy.co.il|access-date=2018-04-25}}</ref> located in several Jerusalem neighborhoods as well as in [[Afula]], [[Acre, Israel|Akko]], [[Ashdod]], [[Ashkelon]], [[Bat Yam]], [[Beersheba]], [[Beit Shemesh]], [[Eilat]], [[Hadera]], [[Haifa]], [[Holon]], [[Tzoran-Kadima|Kadima]], [[Karmiel]], [[Malakhi Junction|Kastina]], [[Kfar Saba]], [[Kiryat Shmona]], [[Lod]], [[Mevasseret Zion]], [[Modiin]], [[Nesher]], [[Netanya]], [[Nahariya]], [[Pardes Hanna]], [[Petah Tikva]], [[Ra'anana]], [[Ramat Gan]], [[Ramat HaHayal|Ramat Hahayal]], [[Rehovot]], [[Rishon LeZion]], [[Rosh |
There are currently 44 Rami Levy supermarkets,<ref>{{Cite web|url=https://m.rami-levy.co.il/?catid=%7B589D8F30-EA33-44F8-93BB-8CB3DF6396DF%7D|title=רמי לוי שיווק השקמה|website=m.rami-levy.co.il|access-date=2018-04-25}}</ref> located in several Jerusalem neighborhoods as well as in [[Afula]], [[Acre, Israel|Akko]], [[Ashdod]], [[Ashkelon]], [[Bat Yam]], [[Beersheba]], [[Beit Shemesh]], [[Eilat]], [[Hadera]], [[Haifa]], [[Holon]], [[Tzoran-Kadima|Kadima]], [[Karmiel]], [[Malakhi Junction|Kastina]], [[Kfar Saba]], [[Kiryat Shmona]], [[Lod]], [[Mevasseret Zion]], [[Modiin]], [[Nesher]], [[Netanya]], [[Nahariya]], [[Pardes Hanna]], [[Petah Tikva]], [[Ra'anana]], [[Ramat Gan]], [[Ramat HaHayal|Ramat Hahayal]], [[Rehovot]], [[Rishon LeZion]], [[Rosh HaAyin]], [[Tiberias]], [[Yavne]], and [[Zichron Yaakov]]. There are also five locations in the [[West Bank]]: [[Beitar Illit]], [[Gush Etzion Junction|Gush Etzion]], [[Sha'ar Binyamin Industrial Zone|Sha'ar Binyamin]], [[Ariel (city)|Ariel]], and [[Mishor Adumim]].<ref>{{cite web |url= http://www.rami-levy.co.il/default.asp?catid=%7BA814458B-B5D4-4F61-925D-9CED1DAE3859%7D |script-title=he:סניפים |trans-title=Branches |publisher=rami-levy.co.il |language=Hebrew |access-date=28 June 2011}}</ref> Levy's stores in the West Bank are often cited as a model of Arab-Jewish coexistence, as Arabs and Jews shop and work there side-by-side.<ref name="media">{{cite web |url= http://www.themedialine.org/news/print_news_detail.asp?NewsID=30098 |title=Supermarkets = Superpeace |last1=Friedson |first1=Felice |last2=O'Sullivan |first2=Arieh |date=22 September 2010 |publisher=The Media Line |access-date=28 June 2011}}</ref><ref name="AFP"/> |
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In 2010, the locations in West Bank, which attract thousands of Palestinian shoppers and top [[Palestinian Authority]] officials,<ref name="warn">{{cite web |url= http://www.jpost.com/MiddleEast/Article.aspx?ID=174959 |title=PA Warns Palestinian Shoppers |last=Abu Toameh |first=Khaled |date=5 July 2010 | |
In 2010, the locations in West Bank, which attract thousands of Palestinian shoppers and top [[Palestinian Authority]] officials,<ref name="warn">{{cite web |url= http://www.jpost.com/MiddleEast/Article.aspx?ID=174959 |title=PA Warns Palestinian Shoppers |last=Abu Toameh |first=Khaled |date=5 July 2010 |access-date=28 June 2011 |work=[[The Jerusalem Post]]}}</ref><ref name="AFP">{{cite web |url=http://www.channelnewsasia.com/stories/afp_asiapacific/view/1067504/1/.html |title=Settlers worry about impact of Palestinian boycott |author=AFP |date=4 July 2010 |access-date=28 June 2011 |publisher=Asia Pacific News}}</ref><ref name="boycott"/> and which are staffed by both Arabs and Jews,<ref name="warn"/><ref name="AFP"/> were targeted by the PA's anti-Israeli goods campaign. For several months the PA attempted to discourage Arabs from shopping at Rami Levy supermarkets, culminating in an official [[boycott]] of the chain in September 2010.<ref name="boycott">{{cite web |url=http://www.israelnationalnews.com/News/Flash.aspx/194582 |title= PA Declares Official Boycott of Rami Levi |date=21 September 2010 |access-date=28 June 2011 |work=Arutz Sheva}}</ref> At the same time, there were concerns among some Orthodox Jews in the area regarding security and especially the issue of intermixing between the male Arab shelving staff and the female Jewish cashiers. All these issues have been largely put aside by the local populations, as witnessed by the multi-ethnic crowds that fill the stores on any given afternoon.<ref>{{cite web |url=http://shimshonit.wordpress.com/2010/07/04/groceries-and-politics/ |title=Groceries and politics |publisher=shimshonit.com |date=2010-07-04 |access-date=2019-05-30}}</ref> |
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==Diversification== |
==Diversification== |
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===In-house brand and outlet stores=== |
===In-house brand and outlet stores=== |
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[[File:Yafiz clothing store.jpg|225px|right|thumb|Yafiz clothing store at a Rami Levy supermarket in [[Givat Shaul]], Jerusalem.]] |
[[File:Yafiz clothing store.jpg|225px|right|thumb|Yafiz clothing store at a Rami Levy supermarket in [[Givat Shaul]], Jerusalem.]] |
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Rami Levy Hashikma Marketing markets a house brand called ''Hamutag'' ({{lang-he|המותג}}, lit. "the brand"),<ref name="your"/> which includes food, detergents, and toiletries.<ref name="ft">{{cite web |url=http://markets.ft.com/tearsheets/businessProfile.asp?s=RMLI:TLV |title=Company description |publisher=The Financial Times Ltd. |year=2011 | |
Rami Levy Hashikma Marketing markets a house brand called ''Hamutag'' ({{lang-he|המותג}}, lit. "the brand"),<ref name="your"/> which includes food, detergents, and toiletries.<ref name="ft">{{cite web |url=http://markets.ft.com/tearsheets/businessProfile.asp?s=RMLI:TLV |title=Company description |publisher=The Financial Times Ltd. |year=2011 |access-date=28 June 2011}}</ref> Some stores have "Pizza Hashikma" and "Burger Hashikma" outlets which sell fast food at a discount.<ref>{{cite web |url=http://www.rami-levy.co.il/default.asp?catid=%7BA9358CAE-9F4D-44B8-9E0D-8A276EA3F124%7D |script-title=he:פיצה השקמה |trans-title=Pizza Hashikma |language=Hebrew |publisher=Rami Levy |access-date=28 June 2011}}</ref><ref>{{cite web |url=http://www.rami-levy.co.il/default.asp?catid=%7B26586C43-DB9E-4417-B3CA-ABB34447B40C%7D |script-title=he:בורגר השקמה |trans-title=Burger Hashikma |language=Hebrew |publisher=Rami Levy |access-date=28 June 2011}}</ref> The chain also includes an in-house store called Yafiz which stocks low-priced clothing and shoes for men, women, teens, children and infants.<ref>{{cite web |url=http://www.rami-levy.co.il/default.asp?catid=%7B659EA239-9A09-4438-8EFC-92A8790030E2%7D |script-title=he:יפי'ז |trans-title=Yafiz |language=Hebrew|publisher=Rami Levy |access-date=28 June 2011}}</ref> |
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===Real estate development=== |
===Real estate development=== |
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In 2000 Rami Levy purchased a plot in the [[Har Nof]] neighborhood of Jerusalem zoned for 100 housing units. He also invested 145.5 million NIS (US$36.3 million) in land for 265 apartments in the [[Holyland Case|Holyland complex]]. In 2008, he bought the rights to SBH Sha'ar L'Yerushalayim for 15 million NIS (US$3.95 million), making him the controlling shareholder of a company that owns land on [[Highway 60 (Israel)|Hebron Road]] zoned for 240 housing units, a hotel, and commercial and industrial space. In 2009 he bought [[Delek#Delek Real Estate Ltd.|Delek Real Estate's]] share of the [[Jerusalem Railway Station]] compound on Derech Beit Lehem (Bethlehem Road) for about 13 million (US$3.6 million); the site is zoned for 1000 housing units. In 2010 Levy partnered with Amikam Ben-Zvi and Housing and Construction Real Estate to buy 13 million NIS (US$3.6 million) worth of land in the [[Givat HaMatos]] area in Jerusalem, also zoned for 1000 housing units. However, Levy blames slow progress on developing the company's recent acquisitions on bureaucratic red tape by planning authorities.<ref name="bio"/> |
In 2000 Rami Levy purchased a plot in the [[Har Nof]] neighborhood of Jerusalem zoned for 100 housing units. He also invested 145.5 million NIS (US$36.3 million) in land for 265 apartments in the [[Holyland Case|Holyland complex]]. In 2008, he bought the rights to SBH Sha'ar L'Yerushalayim for 15 million NIS (US$3.95 million), making him the controlling shareholder of a company that owns land on [[Highway 60 (Israel)|Hebron Road]] zoned for 240 housing units, a hotel, and commercial and industrial space. In 2009 he bought [[Delek#Delek Real Estate Ltd.|Delek Real Estate's]] share of the [[Jerusalem–Khan railway station|Jerusalem Railway Station]] compound on Derech Beit Lehem (Bethlehem Road) for about 13 million (US$3.6 million); the site is zoned for 1000 housing units. In 2010 Levy partnered with Amikam Ben-Zvi and Housing and Construction Real Estate to buy 13 million NIS (US$3.6 million) worth of land in the [[Givat HaMatos]] area in Jerusalem, also zoned for 1000 housing units. However, Levy blames slow progress on developing the company's recent acquisitions on bureaucratic red tape by planning authorities.<ref name="bio"/> |
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In 2011 Levy made headlines with his bid to take over the development of the [[Nof Zion]] luxury housing product in the East Jerusalem neighborhood of [[Jabel Mukaber]] after developer Digal made a debt settlement with creditors. When the identity of the competing bidder – Palestinian-American businessman [[Bashar Masri]] – was announced in the Israeli newspapers, nearly 77 percent<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000615108 |title=Confirmed: Rami Levy buys Digal's Nof Zion project |work=Globes |date=12 January 2011 | |
In 2011 Levy made headlines with his bid to take over the development of the [[Nof Zion]] luxury housing product in the East Jerusalem neighborhood of [[Jabel Mukaber]] after developer Digal made a debt settlement with creditors. When the identity of the competing bidder – Palestinian-American businessman [[Bashar Masri]] – was announced in the Israeli newspapers, nearly 77 percent<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000615108 |title=Confirmed: Rami Levy buys Digal's Nof Zion project |work=Globes |date=12 January 2011 |access-date=28 June 2011 |last=Shauly |first=Avi}}</ref> of bondholders voted to negotiate with the group of Jewish investors headed by Levy.<ref>{{cite web |url= https://www.bloomberg.com/news/2011-02-02/netanyahu-s-economic-peace-tested-by-palestinian-construction-roadblocks.html |title= Netanyahu's Economic Peace Tested by Palestinian Construction Roadblocks |last=Ferziger |first=Jonathan |date=3 February 2011 |access-date=28 June 2011 |publisher=Bloomberg }}</ref> |
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Rami Levy Hashikma Marketing owns 65% of the land on which its supermarkets stand, including approximately {{convert|35000|m2}} of land in Mevasseret Zion, Modiin, Gush Etzion, and Pardes Hanna. The company uses its own [[Equity (finance)|equity]] – estimated at NIS 500 million (US$139 million) – for its commercial real estate purchases.<ref name="bio"/> |
Rami Levy Hashikma Marketing owns 65% of the land on which its supermarkets stand, including approximately {{convert|35000|m2}} of land in Mevasseret Zion, Modiin, Gush Etzion, and Pardes Hanna. The company uses its own [[Equity (finance)|equity]] – estimated at NIS 500 million (US$139 million) – for its commercial real estate purchases.<ref name="bio"/> |
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{{See also|Rami Levy Communications}} |
{{See also|Rami Levy Communications}} |
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[[File:Rami Levy supermarket.jpg|300px|right|thumb|Rami Levy supermarket in Givat Shaul, Jerusalem.]] |
[[File:Rami Levy supermarket.jpg|300px|right|thumb|Rami Levy supermarket in Givat Shaul, Jerusalem.]] |
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In September 2010 Rami Levy Hashikma Marketing became the fourth company in Israel to receive a [[mobile virtual network operator]] license from the [[Communications Minister of Israel|Israel Ministry of Communications]].<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000587385&fid=1725 |title=Supermarket Chain Rami Levi To Receive MVNO License: Rami Levi will become the fourth company to receive an MVNO license |last=Hayut |first=Ilanit|date=6 September 2010 |work=Globes | |
In September 2010 Rami Levy Hashikma Marketing became the fourth company in Israel to receive a [[mobile virtual network operator]] license from the [[Communications Minister of Israel|Israel Ministry of Communications]].<ref>{{cite web |url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000587385&fid=1725 |title=Supermarket Chain Rami Levi To Receive MVNO License: Rami Levi will become the fourth company to receive an MVNO license |last=Hayut |first=Ilanit|date=6 September 2010 |work=Globes |access-date=28 June 2011}}</ref> The company previously announced in a 2010 statement to the Tel Aviv Stock Exchange that upon receiving this license, it would open a new subsidiary, Rami Levy Hashikma Marketing Communications Ltd., and sell advanced mobile telephone services in its supermarkets.<ref>{{cite web |url=http://www.jpost.com/Israel/Article.aspx?id=184116 |title=Honey, pick up some milk and a cellphone |last=Friedman |first=Ron |date=8 September 2010 |access-date=28 June 2011 |work=The Jerusalem Post}}</ref> In February 2011 Rami Levy signed an agreement with Israeli mobile phone provider [[Pelephone]], allowing the supermarket chain to use Pelephone's infrastructure to provide cellular phone services.<ref>{{cite news |url=https://www.reuters.com/article/pelephone-idUKLDE71E2CO20110215?type=companyNewsJERUSALEM |last=Scheer |first=Steven |title=Bezeq's Pelephone inks another mobile operator deal |work=Reuters |date=15 February 2011 |access-date=28 June 2011}}</ref> In December 2011 Rami Levy Communications went live with the opening of two branches in Jerusalem.<ref>{{cite web|last=Aharoni|first=Efrat|title=Rami Levy expects 250,000 mobile carrier subscribers|url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000703642&fid=1725|access-date=6 December 2011|work=Globes|date=5 December 2011}}</ref> Rami Levy Communications is the first MVNO to buy blocks of minutes from other cellular companies and resell them to consumers for less than the providing company charges.<ref name=ami/> |
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==Criticism== |
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⚫ | Levy employs 20 family members in his business,<ref name=ami/> including his wife, Chief Financial Officer Adina Levy, and Vice President of Operations Shmulik Levy,<ref>{{cite web |url=http://english.themarker.com/rami-levi-profits-jump-in-2010-as-new-supermarkets-open-1.351680 |title=Rami Levi profits jump in 2010 as new supermarkets open |date=25 March 2011 | |
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===Involvement in Israeli settlements=== |
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{{See also|List of companies operating in West Bank settlements}} |
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On 12 February 2020, the [[United Nations]] published a [[List of companies operating in West Bank settlements|database]] of companies doing business related in the [[West Bank]], including [[East Jerusalem]], as well as in the occupied [[Golan Heights]].<ref>{{cite web|url=https://reliefweb.int/report/occupied-palestinian-territory/database-all-business-enterprises-involved-certain-activities|title=Database of all business enterprises involved in certain activities relating to Israeli settlements in East Jerusalem and the West Bank (A/HRC/43/71)|date=12 Feb 2020|publisher=UN OCHA|access-date=2021-09-12}}</ref> Rami Levy Hashikma Marketing was listed on the database on account of its activities in [[Israeli settlement|Israeli settlements]] in these occupied territories,<ref name=unlist_ohchr>{{cite news |date=12 February 2020 | title=UN rights office issues report on business activities related to settlements in the Occupied Palestinian Territory | url=https://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=25542 |work=[[Office of the United Nations High Commissioner for Human Rights]] | access-date=5 July 2021}}</ref> which are considered [[International_law_and_Israeli_settlements|illegal under international law]].<ref name=unsc2334>{{cite news |date=23 December 2016 | title=S/RES/2334(2016) | url=https://undocs.org/S/RES/2334(2016) |work=[[United Nations Security Council]] | access-date=5 July 2021}}</ref> |
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===Nepotism=== |
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⚫ | Levy employs 20 family members in his business,<ref name=ami/> including his wife, Chief Financial Officer Adina Levy, and Vice President of Operations Shmulik Levy,<ref>{{cite web |url=http://english.themarker.com/rami-levi-profits-jump-in-2010-as-new-supermarkets-open-1.351680 |title=Rami Levi profits jump in 2010 as new supermarkets open |date=25 March 2011 |access-date=28 June 2011 |last1=Sviderski |first1=Vadim |first2=Eran |last2=Azran |work=Haaretz}}</ref> and many of the stores are managed by relatives.<ref name=lean/> |
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==See also== |
==See also== |
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==References== |
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{{TA 100 companies}} |
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==External links== |
==External links== |
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*[http://www.rami-levy.co.il/ Official Website] |
*[http://www.rami-levy.co.il/ Official Website] |
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[[Category:Retail companies established in 1976]] |
[[Category:Retail companies established in 1976]] |
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[[Category:Supermarkets of Israel]] |
[[Category:Supermarkets of Israel]] |
Latest revision as of 07:52, 19 May 2024
![]() | |
Company type | Public company |
---|---|
TASE: RMLI | |
Industry | Supermarket |
Founded | 1976 |
Founder | Rami Levy |
Headquarters | , |
Number of locations | 44 supermarkets 20 cellular communications stores |
Key people | Rami Levy (Owner and CEO) Adina Levy (CFO) Shmulik Levy (Vice President Operations) |
Revenue | NIS 1.14 billion (US$401 million) (2013)[1] |
NIS 115 million (US$32 million) (2010)[2] | |
NIS 92.47 million (US$27 million) (2011)[3] | |
Total assets | NIS 643 million ($US179 million) (2010)[2] |
Total equity | NIS 500 million (US$139 million) (2010)[4] |
Owner | Rami Levy |
Number of employees | 5,000+[1] |
Subsidiaries | Yafiz clothing stores Rami Levy Communications Israir Airlines |
Website | www![]() |
Rami Levy Hashikma Marketing (Hebrew: רמי לוי שיווק השקמה, Rami Levy Shivuk Hashikma) is the third largest Israeli retail supermarket chain,[1][5] behind Shufersal Ltd. and Alon Holding–Blue Square Ltd., with annual revenues of NIS 1.14 billion (US$401 million).[1] Founded in 1976 on Rehov Hashikma (Sycamore Street) in the Mahane Yehuda Market district, Rami Levy was Israel's first discount store.[4] The chain claims to slash the price of the average basket of goods by as much as 20%.[4][6] The company went public on the Tel Aviv Stock Exchange in 2007 and has increased its sales volume and number of stores each year since. Rami Levy operates a chain of 44 discount supermarkets in Central and Northern Israel. It also distributes wholesale to 450 stores in and around Jerusalem.[7] The company has diversified into retail clothing sales, real estate, and cellular communications, with 20 stores of Rami Levy Communications selling cellular phone services at a discount.[1]
History
![](https://upload.wikimedia.org/wikipedia/commons/thumb/c/c0/Hashikma_Street%2C_Jerusalem.jpg/225px-Hashikma_Street%2C_Jerusalem.jpg)
Rami Levy Hashikma Marketing was founded by Rami Levy (born 1955, Jerusalem, Israel[4][8]), one of six children of an Israeli-born father and Iraqi-born mother. He grew up in poverty in a one-room tin shack[8] with a shared kitchen and bathroom in the Nachlaot neighborhood.[4] Shopping with his mother in the nearby Mahane Yehuda Market (the "shuk"), Levy came to the realisation that there were price differentials available to wholesalers, who preferred selling to retailers than dealing with individuals. Upon completing his army service in 1976,[9] he began selling goods at wholesale prices directly to individuals out of a 40 square metres (430 sq ft) stall that his grandfather had left to the family[1] on Hashikma Street, one of the commercial streets of the shuk. He named his new company after himself and the street he was located on.[4]
Levy said he initially bought goods from a wholesaler and sold them at cost. After three months, he bought goods directly from the importer whilst maintaining his wholesale selling prices, thus becoming the first discount store in Israel.[1] In the early 1980s Levy opened his second, 80 square metres (860 sq ft) store.[4] He opened his first supermarket in Talpiot in 1992; he has since opened two other supermarkets in Talpiot to accommodate business.[9]
In May 2007 the company, with eight branches and a market valuation of NIS 430 million, made its initial public stock offering on the Tel Aviv Stock Exchange.[10] Within two years, the number of branches doubled to 16.[4]
![](https://upload.wikimedia.org/wikipedia/commons/thumb/d/d1/Rami_Levi_original_store.jpg/180px-Rami_Levi_original_store.jpg)
Rami Levy introduced supermarket price wars to Israel[11] by promoting low prices and discounts in advance of Jewish holidays. For example, for one week in 2008, the chain sold milk for less than the price of water,[12] and drove headline prices of chicken down to 0.79 shekels per kilo.[13][14] For Rosh Hashanah 2010, it again grabbed headlines by offering chicken, apples and honey at 1 shekel per kilo (13 cents per pound).[15] Similar promotions were carried out for Passover 2011.[16][17]
In 2009 the chain's discounting policy began to make a dent in the market share of Israel's leading supermarket chains, Shufersal Ltd. and Blue Square-Israel Ltd.[6] Industry analysts attribute the chain's success to Levy's management strategy and marketing skills.[18] Rami Levy Hashikma Marketing stock trades in the TA-75 and TA-100 indexes at a market cap of NIS 1.77 billion (US$474 million)(2011).[10]
Locations
![](https://upload.wikimedia.org/wikipedia/commons/thumb/9/9b/Shaarbinyamin.jpg/300px-Shaarbinyamin.jpg)
There are currently 44 Rami Levy supermarkets,[19] located in several Jerusalem neighborhoods as well as in Afula, Akko, Ashdod, Ashkelon, Bat Yam, Beersheba, Beit Shemesh, Eilat, Hadera, Haifa, Holon, Kadima, Karmiel, Kastina, Kfar Saba, Kiryat Shmona, Lod, Mevasseret Zion, Modiin, Nesher, Netanya, Nahariya, Pardes Hanna, Petah Tikva, Ra'anana, Ramat Gan, Ramat Hahayal, Rehovot, Rishon LeZion, Rosh HaAyin, Tiberias, Yavne, and Zichron Yaakov. There are also five locations in the West Bank: Beitar Illit, Gush Etzion, Sha'ar Binyamin, Ariel, and Mishor Adumim.[20] Levy's stores in the West Bank are often cited as a model of Arab-Jewish coexistence, as Arabs and Jews shop and work there side-by-side.[21][22]
In 2010, the locations in West Bank, which attract thousands of Palestinian shoppers and top Palestinian Authority officials,[8][22][23] and which are staffed by both Arabs and Jews,[8][22] were targeted by the PA's anti-Israeli goods campaign. For several months the PA attempted to discourage Arabs from shopping at Rami Levy supermarkets, culminating in an official boycott of the chain in September 2010.[23] At the same time, there were concerns among some Orthodox Jews in the area regarding security and especially the issue of intermixing between the male Arab shelving staff and the female Jewish cashiers. All these issues have been largely put aside by the local populations, as witnessed by the multi-ethnic crowds that fill the stores on any given afternoon.[24]
Diversification
In-house brand and outlet stores
![](https://upload.wikimedia.org/wikipedia/commons/thumb/0/02/Yafiz_clothing_store.jpg/225px-Yafiz_clothing_store.jpg)
Rami Levy Hashikma Marketing markets a house brand called Hamutag (Hebrew: המותג, lit. "the brand"),[15] which includes food, detergents, and toiletries.[3] Some stores have "Pizza Hashikma" and "Burger Hashikma" outlets which sell fast food at a discount.[25][26] The chain also includes an in-house store called Yafiz which stocks low-priced clothing and shoes for men, women, teens, children and infants.[27]
Real estate development
In 2000 Rami Levy purchased a plot in the Har Nof neighborhood of Jerusalem zoned for 100 housing units. He also invested 145.5 million NIS (US$36.3 million) in land for 265 apartments in the Holyland complex. In 2008, he bought the rights to SBH Sha'ar L'Yerushalayim for 15 million NIS (US$3.95 million), making him the controlling shareholder of a company that owns land on Hebron Road zoned for 240 housing units, a hotel, and commercial and industrial space. In 2009 he bought Delek Real Estate's share of the Jerusalem Railway Station compound on Derech Beit Lehem (Bethlehem Road) for about 13 million (US$3.6 million); the site is zoned for 1000 housing units. In 2010 Levy partnered with Amikam Ben-Zvi and Housing and Construction Real Estate to buy 13 million NIS (US$3.6 million) worth of land in the Givat HaMatos area in Jerusalem, also zoned for 1000 housing units. However, Levy blames slow progress on developing the company's recent acquisitions on bureaucratic red tape by planning authorities.[4]
In 2011 Levy made headlines with his bid to take over the development of the Nof Zion luxury housing product in the East Jerusalem neighborhood of Jabel Mukaber after developer Digal made a debt settlement with creditors. When the identity of the competing bidder – Palestinian-American businessman Bashar Masri – was announced in the Israeli newspapers, nearly 77 percent[28] of bondholders voted to negotiate with the group of Jewish investors headed by Levy.[29]
Rami Levy Hashikma Marketing owns 65% of the land on which its supermarkets stand, including approximately 35,000 square metres (380,000 sq ft) of land in Mevasseret Zion, Modiin, Gush Etzion, and Pardes Hanna. The company uses its own equity – estimated at NIS 500 million (US$139 million) – for its commercial real estate purchases.[4]
Cellular communications
![](https://upload.wikimedia.org/wikipedia/commons/thumb/0/03/Rami_Levy_supermarket.jpg/300px-Rami_Levy_supermarket.jpg)
In September 2010 Rami Levy Hashikma Marketing became the fourth company in Israel to receive a mobile virtual network operator license from the Israel Ministry of Communications.[30] The company previously announced in a 2010 statement to the Tel Aviv Stock Exchange that upon receiving this license, it would open a new subsidiary, Rami Levy Hashikma Marketing Communications Ltd., and sell advanced mobile telephone services in its supermarkets.[31] In February 2011 Rami Levy signed an agreement with Israeli mobile phone provider Pelephone, allowing the supermarket chain to use Pelephone's infrastructure to provide cellular phone services.[32] In December 2011 Rami Levy Communications went live with the opening of two branches in Jerusalem.[33] Rami Levy Communications is the first MVNO to buy blocks of minutes from other cellular companies and resell them to consumers for less than the providing company charges.[1]
Criticism
Involvement in Israeli settlements
On 12 February 2020, the United Nations published a database of companies doing business related in the West Bank, including East Jerusalem, as well as in the occupied Golan Heights.[34] Rami Levy Hashikma Marketing was listed on the database on account of its activities in Israeli settlements in these occupied territories,[35] which are considered illegal under international law.[36]
Nepotism
Levy employs 20 family members in his business,[1] including his wife, Chief Financial Officer Adina Levy, and Vice President of Operations Shmulik Levy,[37] and many of the stores are managed by relatives.[5]
See also
References
- ^ a b c d e f g h i Gantz, Nesanel. "Lunch Break: With Rami Levy". Ami, 15 January 2014, pp. 40–42.
- ^ a b "Rami Levi Chain Stores Hashikma Marketing 2006 Ltd". Tel Aviv Stock Exchange. Retrieved 28 June 2011.
- ^ a b "Company description". The Financial Times Ltd. 2011. Retrieved 28 June 2011.
- ^ a b c d e f g h i j Nahum-Halevy, Ranit (8 March 2010). "Rami Levy blames high housing prices on ILA". Haaretz. Retrieved 28 June 2011.
- ^ a b Hayut, Ilanit (18 June 2012). "Can Rami Levy remain lean?". Globes. Retrieved 14 April 2013.
- ^ a b "Rami Levy Banks on Deep Discounts: The Israeli supermarket chain, plans to boost its market share by mid-2011 with new stores and price cuts". Bloomberg. 25 August 2009. Retrieved 28 June 2011.
- ^ "About". rami-levi.co.il. Archived from the original on 26 April 2011. Retrieved 28 June 2011.
- ^ a b c d Abu Toameh, Khaled (5 July 2010). "PA Warns Palestinian Shoppers". The Jerusalem Post. Retrieved 28 June 2011.
- ^ a b Veeder, Nechama (15 August 2003). "Shop Talk". The Jerusalem Post. Archived from the original on 6 November 2012. Retrieved 30 August 2012.
- ^ a b Bar, Noam (19 May 2011). "Why did Rami Levi stock rise so much: Shoppers, or rightists?". Haaretz. Retrieved 28 June 2011.
- ^ Hayut, Ilanit (11 February 2008). "Price War Bursts Out Between Israeli Supermarkets". Globes. Retrieved 28 June 2011.
- ^ Ross, Idele (2008). "Price Wars at Supermarket Chains". KosherToday. Retrieved 28 June 2011.
- ^ Paz, Shelly (15 February 2008). "Rami Levy ain't chickening out, and at NIS 0.79 per kilo everyone's flocking". The Jerusalem Post. Retrieved 28 June 2011.
- ^ Spira, Yechiel (16 September 2008). "Israel: Round 2 of Chicken 'War' Between SuperSol & Rami Levy". Yeshiva World News. Retrieved 28 June 2011.
- ^ a b "Zionist Entrepreneur Saves Jerusalem Neighborhood". Arutz Sheva. 17 January 2011. Retrieved 28 June 2011.
- ^ Ben Gedalyahu, Tzvi (30 March 2011). "Pre-Passover Miracle Prices: Chickens for 13 Cents a Pound". Arutz Sheva. Retrieved 28 June 2011.
- ^ Hayut, Ilanit (29 March 2011). "Supermarket Battles Heat Up as Passover Nears: Rami Levi again promotes one shekel chickens; nearby rivals to match". Globes. Retrieved 28 June 2011.
- ^ Amit, Hagai (8 March 2010). "Is Shlomo Rodav five times more talented than Rami Levy?". Haaretz. Retrieved 28 June 2011.
- ^ "רמי לוי שיווק השקמה". m.rami-levy.co.il. Retrieved 25 April 2018.
- ^ סניפים [Branches] (in Hebrew). rami-levy.co.il. Retrieved 28 June 2011.
- ^ Friedson, Felice; O'Sullivan, Arieh (22 September 2010). "Supermarkets = Superpeace". The Media Line. Retrieved 28 June 2011.
- ^ a b c AFP (4 July 2010). "Settlers worry about impact of Palestinian boycott". Asia Pacific News. Retrieved 28 June 2011.
- ^ a b "PA Declares Official Boycott of Rami Levi". Arutz Sheva. 21 September 2010. Retrieved 28 June 2011.
- ^ "Groceries and politics". shimshonit.com. 4 July 2010. Retrieved 30 May 2019.
- ^ פיצה השקמה [Pizza Hashikma] (in Hebrew). Rami Levy. Retrieved 28 June 2011.
- ^ בורגר השקמה [Burger Hashikma] (in Hebrew). Rami Levy. Retrieved 28 June 2011.
- ^ יפי'ז [Yafiz] (in Hebrew). Rami Levy. Retrieved 28 June 2011.
- ^ Shauly, Avi (12 January 2011). "Confirmed: Rami Levy buys Digal's Nof Zion project". Globes. Retrieved 28 June 2011.
- ^ Ferziger, Jonathan (3 February 2011). "Netanyahu's Economic Peace Tested by Palestinian Construction Roadblocks". Bloomberg. Retrieved 28 June 2011.
- ^ Hayut, Ilanit (6 September 2010). "Supermarket Chain Rami Levi To Receive MVNO License: Rami Levi will become the fourth company to receive an MVNO license". Globes. Retrieved 28 June 2011.
- ^ Friedman, Ron (8 September 2010). "Honey, pick up some milk and a cellphone". The Jerusalem Post. Retrieved 28 June 2011.
- ^ Scheer, Steven (15 February 2011). "Bezeq's Pelephone inks another mobile operator deal". Reuters. Retrieved 28 June 2011.
- ^ Aharoni, Efrat (5 December 2011). "Rami Levy expects 250,000 mobile carrier subscribers". Globes. Retrieved 6 December 2011.
- ^ "Database of all business enterprises involved in certain activities relating to Israeli settlements in East Jerusalem and the West Bank (A/HRC/43/71)". UN OCHA. 12 February 2020. Retrieved 12 September 2021.
- ^ "UN rights office issues report on business activities related to settlements in the Occupied Palestinian Territory". Office of the United Nations High Commissioner for Human Rights. 12 February 2020. Retrieved 5 July 2021.
- ^ "S/RES/2334(2016)". United Nations Security Council. 23 December 2016. Retrieved 5 July 2021.
- ^ Sviderski, Vadim; Azran, Eran (25 March 2011). "Rami Levi profits jump in 2010 as new supermarkets open". Haaretz. Retrieved 28 June 2011.