Israel pharmacy market “big bang”? Sapir Group enters with pharm plus as a game-changing player

For years, Israel’s pharmacy market has operated within a relatively limited competitive structure. Israeli consumers know how to compare supermarket prices, check the price of cottage cheese, wait for discounts on olive oil, or split their grocery shopping between several food chains, but in the pharmacy sector purchasing behavior has remained less aggressive. Many shoppers enter Super-Pharm or BE out of habit, convenience, nationwide accessibility, pharmacy services, rotating promotions, and a familiar shopping experience. Yet it is precisely there, on the shelves of shampoos, deodorants, baby products, vitamins, hair products, and cosmetics, that one of the most expensive household shopping baskets is often hidden.

Now entering this market is Pharm Plus, a new chain launched by the Sapir Group, owned by brothers Oren and Avinoam Sapir. In recent years, the group has become known mainly through “Neto Hisachon,” a discount retail chain aimed in part at the ultra-Orthodox sector, but which expanded through large stores, broad product variety, and an operational model combining price, availability, and purchasing power. The group is now attempting to bring that same retail DNA into the pharmacy world.

The first Pharm Plus branch has opened at Broshim Campus near Tel Aviv University, with an investment of tens of millions of Shekels and a particularly ambitious goal: 80 branches nationwide by the end of 2027. Even the choice of the first location carries a statement. This is not a launch in a peripheral consumer area or a small neighborhood store, but rather an entry into Tel Aviv - a young, urban, price-conscious environment that still values shopping experience, brands, aesthetics, and variety.

Sapir Group is not entering the pharmacy market as an outsider. It comes from the world of food retail, where competition is built on smart purchasing, rapid response, operational efficiency, and bargaining power with suppliers, consumer understanding, and a willingness to operate on lower profit margins in order to generate traffic. In this world, price is not merely a number on a shelf - it is a statement of intent.

In some ways, Sapir Group’s development story resembles the path taken by other Jerusalem-based retailers, including Rami Levy: A local beginning, closeness to consumers, an understanding of price sensitivity, gradual expansion, and eventually an attempt to evolve from a regional model into a national brand. “Neto Hisachon” grew in recent years on a similar concept: Large stores, competitive prices, and an appeal to consumers seeking savings without feeling they are compromising.

The move into pharmacy retail is no coincidence. The toiletries, cosmetics, baby products, hygiene products, and dietary supplements market is one in which consumers often pay high prices due to a combination of habit, brand loyalty, geographic accessibility, complex loyalty-club promotions, and lack of transparency. Anyone who understands food retail immediately recognizes the pain point: A recurring shopping basket, familiar brands, significant price gaps, and consumers willing to switch shopping locations if they believe the savings are real.

To understand Pharm Plus’s entry into the market, it is important to remember the role played by Good Pharm. It did not eliminate Super-Pharm’s dominance, but it shattered the perception that pharmacy products must be sold at high prices. Good Pharm taught consumers that deodorant, shampoo, toothpaste, and personal care products could be purchased at far lower prices while still receiving familiar brands.

Later, BE, owned by Shufersal, also attempted to position itself as a more competitive alternative. But as the market evolved, the gaps between some of the players began to narrow. Consumers once again found themselves in a market where promotions constantly changed, prices fluctuated, and anyone not paying close attention could still end up paying premium prices - even at chains supposedly considered cheaper.

Alongside them, Lior Adika introduced a different concept, based on parallel imports, low prices, and a focus on deal-seeking consumers. Adika succeeded in generating demand, but at this stage has not expanded at a pace capable of shaking the nationwide market. Its importance lies in proving that there is a broad audience willing to purchase pharmacy products outside the traditional pharmacy-chain model.

This is where Pharm Plus is attempting to say something different: Not just low prices, but a combination of price, shopping experience, variety, and professional products. In other words, not merely another store displaying basic products at bargain prices, but a chain seeking to expand the pharmacy category into a broader retail space: Skincare products, cosmetics, hair products, professional items for hairstylists and beauticians, dietary supplements, vitamins, sports products, baby products, and well-known brands.

Oren Sapir’s statement is clear: To offer the same products sold at Super-Pharm and BE at price levels resembling those of Good Pharm and Lior Adika. This competitive message targets precisely the middle ground occupied by Israeli consumers. On one hand, they want low prices. On the other, they want brands, reliability, organized stores, a sense of security, and variety that goes beyond only the cheapest products.

Pharm Plus’s business model relies on two central engines: Parallel imports and the group’s purchasing power. Parallel imports allow the chain to source products from alternative suppliers and offer them at lower prices, while the group’s purchasing power strengthens its negotiating position in dealings with importers, suppliers, and distributors - especially if Pharm Plus benefits from the logistics systems, business relationships, and retail experience of “Neto Hisachon.”

But the test is not only about procurement. The pharmacy market differs significantly from food retail. Here, store appearance, positioning, trust in products, shelf experience, consultation, professionalism, and the ability to manage complex categories all play a major role. Professional hair products, for example, are not sold like rice or sugar. Consumers want to know what they are buying, why the price is lower, whether the product is authentic, where it was imported from, and whether it suits their personal needs.

Pharm Plus is attempting to bridge this gap with a store that looks and feels spacious, invested, and diverse - not simply like a warehouse of discounted products. If successful, it could create a new competitive category: Discount pharmacy retail with an accessible premium experience.

The launch prices presented by the chain deliver a clear message. Listerine at NIS 9.90 is not just a single product - it is a “loss leader.” A recognizable product consumers can instantly compare and use to determine whether they are receiving a good deal.

The same strategy is evident in deodorants: Axe at NIS 7.90, Gillette Clear Sport at NIS 11.90, and Speed Stick at NIS 13.90. These are products found in nearly every household, making them effective tools for shaping price perception. When consumers notice a difference of several Shekels on products they repeatedly purchase, they begin asking themselves not only where prices are cheaper, but why they have been paying more until now.

In haircare products, an interesting dual approach emerges. On one side are mass-market products such as Head & Shoulders shampoo at NIS 11.90 and Pantene at NIS 12.90. On the other side are Olaplex products priced around NIS 159.90 and a 4-in-1 set for NIS 599.90. This is no longer only about basic products, but about attracting consumers seeking professional and premium products typically sold in salons, specialty stores, or online platforms.

The baby-products category is especially important. Pampers Premium at NIS 22.90 and Huggies wipes at NIS 12.90 target young families - a highly price-sensitive audience that also values trust in brands. Parents who consistently save money on baby products may become loyal shoppers if the savings continue over time rather than relying solely on temporary promotions.

In dietary supplements, another strategy appears: Not only low individual prices, but quantity promotions, such as Vitamin B12 at NIS 79.90 in a “2+1” deal, or SupHerb Multi Hair Plus at NIS 109.90 in a “2+1” promotion. This is a category where Israeli consumers are accustomed to high prices, loyalty-club discounts, and significant price differences between chains, websites, natural-product stores, and overseas purchases.

One of the most interesting elements of the Pharm Plus launch is the connection between business strategy and personal story. Oren Sapir presents himself not only as a retailer, but also as an athlete competing in Ironman competitions worldwide. For him, supplements, grooming products, and professional accessories are not merely commercial categories, but personal necessities.

According to him: “When I look for quality products that suit my athletic needs, that’s where I don’t compromise. Whether it’s nutritional supplements or professional grooming products, everything in Israel is disproportionately expensive, with almost no real competition, and buying cheaply abroad is not the solution. I’m simply bringing Europe to Israel - not only in the shopping experience, but also in the price.”

This quote touches one of the deepest frustrations felt by Israeli consumers. Many Israelis travel to Europe, enter pharmacy chains, buy cosmetics, supplements, vitamins, and personal care products, and return with a clear impression: The same or very similar products are sold abroad at significantly lower prices. Some order online, some ask friends to bring products from overseas, and others simply continue paying local prices while feeling they have no real alternative.

If Pharm Plus succeeds in transforming this feeling into a permanent retail model, it may influence not only consumers’ wallets, but also their sense of consumer fairness. This is not merely a question of cheaper shampoo, but of renewed trust that real competition can change a market.

This is the central question. Nearly every new chain knows how to launch aggressively. Opening promotions are a familiar tool, especially in industries where public attention matters. The real question is what will happen three months, six months, and a year from now. Will prices remain low? Will suppliers continue cooperating? Will parallel imports be sufficient to maintain inventory consistency? Will the chain be able to expand without losing its operational advantages? And are 80 branches by the end of 2027 a realistic target, or merely an overly ambitious marketing statement?

A discount model can succeed when it is based on genuine efficiency rather than promotions alone. If low prices are the result of purchasing power, parallel imports, lean cost structures, and smart category management, there is real potential for deep competition. If a significant portion of the prices relies mainly on opening promotions or temporary subsidization, the market will identify that quickly.

Israeli consumers have already learned to distinguish between genuinely low prices and temporary deals. They know that promotions on 30 products can create a perception of affordability without necessarily meaning the entire basket is cheap. Therefore, the true professional test for Pharm Plus will not be the price of Listerine, Axe, or Pampers on launch day, but the price of a full shopping basket over time.

Super-Pharm is one of Israel’s strongest retail chains. Its power lies not only in price, but in nationwide presence, brand recognition, loyalty programs, pharmacy services, accessibility, operating hours, shopping experience, and consumer loyalty built over many years. It is difficult to challenge such a player through price alone. To take market share from it, consumers must be given a clear reason to change habits.

BE, operating within the Shufersal Group, enjoys logistical advantages, customer-club infrastructure, and consumer data, but has not always succeeded in creating sufficiently sharp differentiation in consumers’ eyes. When a new player enters with declarations of lower prices, parallel imports, and an upgraded shopping experience, pressure may be placed not only on Super-Pharm, but also on BE.

Good Pharm and Lior Adika may feel the competition from another angle. If Pharm Plus offers similar pricing while providing larger stores, more polished presentation, broader professional variety, and faster expansion, it could erode part of their differentiation. In other words, the competition is not only against expensive chains, but also against players already positioned as affordable alternatives.

The pharmacy sector in Israel is ready for competition because many of its products are recurring purchases. Consumers do not buy shampoo once in a lifetime. They buy it repeatedly. The same applies to deodorant, toothpaste, mouthwash, diapers, wipes, supplements, and personal care products. When price gaps repeat throughout the year, cumulative savings become significant.

In addition, Israeli consumers have become more price-sensitive. The cost of living is no longer an abstract economic issue, but part of the daily conversation among families. If consumers once focused mainly on comparing supermarket prices, today they also compare prices on appliances, cleaning products, baby products, flights, insurance, and financial services. Pharmacy retail is the next frontier.

Parallel imports have also become more accepted in consumer consciousness. Consumers are no longer automatically alarmed by products arriving through alternative channels, as long as they are authentic, properly labeled, and sold by trusted retailers. If Pharm Plus can explain parallel imports clearly, maintain reliability, and avoid creating the impression of questionable merchandise, it may benefit from one of the market’s most powerful tools for lowering prices.

Pharm Plus is entering the market at the right moment. Consumers are searching for alternatives, the pharmacy sector needs refreshing, prices in many categories remain too high, and the gap between Israel and Europe is strongly felt in personal care, supplements, and everyday pharmacy products. Sapir Group brings retail experience, purchasing power, a discount-oriented philosophy, and a desire to present a fast and lean operational model.

But the real test will not come on opening day - it will come during routine operations. True competition is not measured by the price of one product displayed on a large sign, but by the ability to maintain a broad basket at consistently low prices, provide stable inventory, preserve reliability, expand without losing control, and give consumers the feeling that they did not simply buy cheaply - they bought wisely.

If Pharm Plus succeeds in delivering on its promise, it could become a true game-changing player. Not necessarily by defeating Super-Pharm outright, but by creating competitive pressure that forces the entire market to move. And that is exactly what Israeli consumers need: Not another temporary promotion, not another loyalty club complicating prices, but simple, clear, transparent, everyday competition.