March 21, 2016

Will Israeli Supermarket be Able to Accomplish What Pathmark Could Not?

Brooklyn, NY - The now defunct and shuttered Pathmark Supermarket on 60th Street and 13th Avenue will soon come to life with a new Osher Ad store, the first Israeli brand name supermarket to open in the US. Osher Ad has 15 supermarkets in Israel’s major cities with estimated sales of $650 million a year. The discount retailer will open the store with a U.S. partner at an investment of $9 million with expected revenue of $100 million a year, unconfirmed reports say. That would amount to almost $2 million a week, well beyond other supermarkets in the area with the exception of perhaps Shoprite on McDonald Avenue.

Kosher Today had reported several times in the past decade about the interest of Israeli supermarkets to open in the US, included the large Supersol chain. But sources say that in each case the Israelis concluded that it did not fit their business model and the plan was dropped. The Osher Ad store will open on the site of a former Pathmark store which the sources said “never made it in Boro Park.” They attribute the failure to poor marketing and management and a failure to reach out to the broader community. In the past five years, many new independent kosher stores opened in Boro Park, including Breadberry, Gourmet Glatt, and the expansion of Goldberg’s, not to speak of such major stores in nearby Flatbush as Pomegranate and Moshe’s. Osher Ad will find this competition to be extremely tough, say the sources with an expected price war. But in Israel, Army Radio in a survey found that Osher Ad was not amongst the cheapest last Passover. Such chains as Rami Levy and Yesh were found to be cheaper. Only Supersol was more expensive. Whether Osher Ad will be able to carve out its own niche remains to be seen. Sources say the store is due to open in August.