Consumer malls have become an overnight success story in Israeli retailing. More than 30 large shopping malls now exist and others are planned. Trendy, specialized national chain stores and franchises have become increasingly popular, replacing traditional food and consumer goods monopolies. The key to this success has been the increasing variety of new products and services offered to the Israeli consumer, driven by sustained growth in consumption. Thirty percent is directed to the institutional market which includes the army, hospitals, hotels, restaurants, and factories as raw materials for processing.
Distribution is direct by manufacturers, importers or wholesalers.
Over half of the food directed at non-institutional consumers is sold through supermarkets and similar retail chains. Some 400 supermarkets, with an average floor size of 600 square meters, are located throughout the country. Some of the larger stores have areas of 1,000 - 2,000 square meters. Supersol and Blue Square Co-op are the two main supermarket chains, together accounting for fifty percent of the total sales volume in supermarkets. The rest of the food market is served by typical Middle Eastern open markets and small groceries.