Rami Levy explains: How to reduce the cost of living
Contrary to the increasing trend of profits of retail chains, the Rami Levy chain published relatively weak figures. Businessman and owner of the network, Rami Levy, spoke about this with Anat Davidov in the program “Where is the money” on Radio 103fm.
At the beginning of his speech, Rami Levy said: “My gross profit is low. For me, the balance sheet is not disappointing, it was actually excellent. We earned seventy million shekels in the quarter. It makes me happy that we are the only chain that did not take advantage of the war and reduced its gross profit relative to all prices in the run-up to the war.”
“I tell the business reporters and consumer reporters: Anyone who can read balance sheets knows that when gross profits fall, you have lowered prices or maybe gotten a slightly better price for the supplier. Especially during a war, and the situation is not the best, we have reached out to my consumers. We have to empower them.”
Levy explains: “The consumer has enormous power. For a kilo of grapes, he has to pay a maximum of 20 shekels per kilo. For us, it is enough to sell a lot and make a small profit. It may be that the grapes are sold at a high price because they sell little. Our strategy is to earn less in percentage terms, but sell a lot.”
Levy turns to consumers and makes suggestions on how they can influence the cost of living themselves: “There is no competition in the public sector, so prices are raised arbitrarily. In our industry, there is a great deal of variety on the shelf. If there is an expensive product, you shouldn’t buy it. Cheaper equivalent products are just as good, sometimes even better. If consumers shop wisely, they also help to reduce the cost of living.”
Concluding his words, Levy stressed: “We will not take advantage of the time and towards the end of the holidays we will carry out more extensive promotions to help the public. We will not drop off the goods in one place and pick them up in another. I promise that my basket will be the cheapest and we will do that.”
