First Israeli Supermarket Chain Said to Open Branch Abroadby
Israel’s Osher Ad chain is set to become the country’s first supermarket to open a foreign branch with an outlet in New York, according to two people familiar with the matter.
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, said the people, who asked not to be named because the plans aren’t public. Osher Ad, which specializes in strictly kosher products, acquired the 70,000-square-feet store in Brooklyn from the receiver of the Pathmark supermarket chain. It’s expected to open at the end of August this year, the people said.
The privately-held Jerusalem, Israel-based network is seeking to cater for Brooklyn’s most observant ultra-Orthodox Jews, a potential target audience of about 45,000 households, the people familiar with the deal said.
Osher Ad has 15 supermarkets in Israel’s major cities with estimated sales of $650 million a year, one person said. That would make it Israel’s fourth-largest chain by sales, according to data compiled by Bloomberg. The company expects to open more stores in the U.S. in areas with a high concentration of observant Jews, the people said.