September 19, 2011

Price Cuts in Israel Come at Wrong Time as Effects of Social Media are Felt

Tel Aviv … The social protests in Israel have succeeded in at least one area -- food prices at the country’s supermarkets are lower by as much as a third in some cases.  Ahead of the high holiday season, the larger chains have all launched major campaigns to convince shoppers that they have the lowest prices.  A survey of 32 food items done by The Marker, the Haaretz business supplement, found one chain belonging to Rami Levy at 24 percent cheaper than the nearest competitor.  The survey also found that there was little difference among the rest of the chains which included Supersol Deal, Mega Bul and the newer competitor Kimat Chinam (Practically for Free).  Observers noted that a price war on the eve of Rosh Hashanah is extremely rare, but given the recent historic impact  of the consumer revolt attributed to social media, the retailers were brought to their knees.