Israel’s Osher Ad chain is set to become the country’s first supermarket to open a foreign branch, with an outlet in New York, according to two people familiar with the matter.
The discount retailer will open the store with a US partner at an investment of $9 million, with expected revenue of $100 million a year, said the people, who asked not to be named because the plans aren’t public. Osher Ad, which specialises in strictly kosher products, acquired the 70,000-square-foot store in Brooklyn from the receiver of the Pathmark supermarket chain. It is expected to open at the end of August this year, the people said.
The privately held Jerusalem, Israel-based network is seeking to cater to Brooklyn’s most observant ultra-Orthodox Jews, a potential target audience of about 45,000 households, the people familiar with the deal said.
Osher Ad has 15 supermarkets in Israel’s major cities, with estimated sales of $650 million a year, one person said. That would make it Israel’s fourth-largest chain by sales, according to data compiled by Bloomberg. The company expects to open more stores in the US in areas with a high concentration of observant Jews, the people said.
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