Shufersal Falls to Lowest in Almost 3 Years as Store Sales Drop
Shufersal Ltd. (SAE), Israel’s largest supermarket chain, dropped to the lowest level since June 2009 after reporting a fourth-quarter decline in same-store sales.
The shares retreated 1.8 percent to 12.90 shekels at the 4:30 p.m. close in Tel Aviv, bringing the 12-month decline to 39 percent.
Shufersal and competitor Alon Holdings Blue Square-Israel Ltd. (BSI), the country’s second-largest food retailer, have tumbled as protests calling for more affordable housing and lower prices for food and other consumer products curbed the companies’ ability to raise prices. Shufersal said today that fourth- quarter revenue was unchanged at 2.79 billion shekels ($735 million) amid a 4.1 percent decline in same-store sales.
“Concerns still remain regarding growing competition from smaller chains, further consumer activism,” Gil Dattner, an analyst at Bank Leumi Le-Israel Ltd. (LUMI), Israel’s largest bank by assets, wrote in an e-mailed report today.
Alon Holdings shares, which have declined 61 percent in the past 12 months, were unchanged at 13.20 shekels.
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