Blue Square Sales Down As Downturn Strikes MGR Industry

On the back of trade-down trends inflicted by a forecast 1.9% contraction in GDP in 2009, Leading Israeli supermarket operator Blue Square has reported a 3.5% year-on-year (y-o-y) decline in H109 revenues (through to June 30) to ILS3.61bn (US$947.3mn). With a market share of about 35%, Blue Square is Israel's second biggest mass grocery retailer (MGR) behind Super-Sol. BMI points out that Israel's MGR industry is steadily saturating. Through to 2013, we have forecast supermarket sales to increase by just 8.9% and reach ILS9.8bn. Over the same period, wider MGR sales are expected to push up just 6.3%.

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