After its first year of operations in Israel, the international supermarket chain SPAR is accelerating its expansion plans in the local market. In the coming weeks, the chain is expected to open its second branch on Shaul Hamelech Street in Tel Aviv, followed by a third branch in Kibbutz Beit Alfa in the Jezreel Valley, under a unique collaboration model with the kibbutz.
These moves reflect a strategy of adapting the chain to a variety of markets in Israel – from major cities to rural settlements – while maintaining the chain’s signature style alongside adjustments to local needs.
The branch opening soon on Shaul Hamelech Street in Tel Aviv will be the first in Israel in an urban format, and significantly different from the large flagship store in Kfar Saba, which spans 2,500 square meters. The new store will operate seven days a week and will include a café, a variety of sandwiches and pastries, along with SPAR's private-label products imported from around the world.
The branch will also offer delivery services to local residents through the WOLT app, marking the chain’s first step in its strategy to enter city centers with smaller-format stores.
A Unique Model in Kibbutz Beit Alfa
The more significant innovation is coming from the periphery: In May, SPAR’s third branch is expected to open in Kibbutz Beit Alfa, under a model not yet seen in Israel. The kibbutz’s longstanding general store will be rebranded under the SPAR name, but will continue to operate under the ownership and management of the kibbutz itself.
The initiative for this collaboration was mediated by Hamarlog, a wholesale food distributor owned by the Jezreel Valley Kibbutzim Corporation. The model allows the kibbutz to benefit from the purchasing power and logistics of the international chain, while preserving its community identity and local service.
Alon Haggai, chairman of Kibbutz Beit Alfa, stated: “We are proud to lead a first-of-its-kind collaboration in Israel, allowing us as a kibbutz to benefit from the purchasing power of an international retail chain, combined with a unique selection of private-label products, advanced branding, and technological innovation – all while maintaining full independence in the store’s management and operation.”
Amit Ze’ev, CEO of SPAR Israel, spoke about the chain’s future plans: “After a challenging but highly successful first year, we are ready to expand our reach and operate in additional formats. Alongside large stores like the one in Kfar Saba, we are beginning to launch mini-market branches ranging from 200–500 square meters, which will serve customers in neighborhoods and city centers.”
Ze’ev added that the chain is also preparing to introduce the SPAR Express convenience store format to Israel – small stores ranging from 30–100 square meters, expected to open at gas stations, office complexes, and other high-traffic strategic locations.
Combining Tradition with Innovation
The meeting point between an international chain and a historic kibbutz like Beit Alfa, which is celebrating its 102nd anniversary, creates an intriguing fusion of tradition and innovation. The local general store operates in a preserved historic building, Ha'urva, as part of the old farmyard which includes about 20 structures from the early days of rural settlement in Israel.
Following the expected success of the Beit Alfa model, Hamarlog and SPAR are working to expand the model to other kibbutzim in northern Israel, as part of a strategic initiative to upgrade kibbutz grocery stores and the rural environment.
According to SPAR Israel’s business plan, the chain is expected to open about 10 stores within its first three years of operation in Israel, and about 35 additional stores over the next three years. In addition to company-owned branches, the chain will also allow other independent retailers to join and enjoy the combination of running a local independent business with the advantages of a nationwide network.
