The end of the pilot: The “Israel’s Basket” initiative will officially conclude on October 14, following six months of operation. Economy and Industry Minister Nir Barkat decided not to implement the second operational period, leaving the decision regarding the program’s continuation to the next government.
Following the conclusion of the project, approximately 100 products included in the discounted basket are expected to rise in price. Concurrently, the Carrefour retail chain announced the launch of an independent, broad initiative titled “Carrefour Special Deal,” which will offer promotions in stores and online throughout the entire year.
The “Israel’s Basket” pilot, which was launched with a government investment of NIS 25 million, tested a model leveraging consumer purchasing power to lower prices. According to data from the Economy and Industry Ministry, the initiative yielded direct savings of approximately NIS 40 million on purchases of basket products at Carrefour, alongside indirect savings of tens of millions of additional shekels at competing retail chains.
However, the Economy Ministry acknowledged that the pilot also sharply exposed the deep lack of competition in the Israeli food market, as only a single retail chain chose to participate in the initiative and offer the discounted basket across 54 of its branches and on its website.
The current timing plays directly into Carrefour’s hands: Had the chain withdrawn from the initiative on its own accord and ceased offering the discounted basket without an external rationale, the move would have been perceived as an admission that the model had failed. Now, owing to the election cycle and the halting of the project by the Economy Ministry, the chain can attribute the end of the benefit to the change in government and smoothly transition to an independent promotional campaign.
Carrefour branch in Netivot. (credit: PR)Why the discounted basket is coming to an end
“The idea was good, but it was not a profitable deal,” said a source familiar with the details. “Regional preferences across the country vary, and demand differs. In northern Tel Aviv, shoppers look for different products than in the North. On some products, the subsidy was too large and caused losses. The expectation was that new customers would arrive thanks to the cheap basket, but that did not happen.”
Economy and Industry Minister Nir Barkat stated: “‘Israel’s Basket’ proved that prices can be lowered. Alongside this, the pilot also starkly exposed the issue of the lack of competition in the food market.
“Carrefour’s courageous decision to join the initiative is worthy of appreciation. We are facing a transition between governments, and therefore, following a joint discussion with Carrefour management, I decided it would not be right at this time to make a decision that would bind the incoming government. We will place the accumulated knowledge and conclusions at the disposal of the next government so it can decide how to proceed.”
Conversely, Carrefour is preparing for the day after October 14 through an alternative promotional campaign.
Inbal Harson, CEO of Carrefour, stated: “Immediately upon the conclusion of ‘Israel’s Basket,’ we are launching new value for consumers with a nationwide ‘Carrefour Special Deal’ campaign. The initiative will run throughout the year and offer strong, diverse, and cost-effective promotions across all formats and in all 144 chain branches, as well as online.”