Israel's Sonol Moving Beyond the Gas Station

The convenience store industry is relatively new in Israel, and gasoline retailer Sonol is expanding rapidly.

March 04, 2010

ISRAEL - Israeli gasoline retailer Sonol is expanding beyond gas stations and into dedicated Sogood convenience stores in city centers beginning next year, Haaretz.com reports.

"We'll finish consolidating the concept in the coming months, then we'll finalize the schedule," said Tamir Polikar, CEO of Sonol, adding that the move is a strategic one for the company.

"It's the job of a retailer to constantly innovate," Polikar said. "We'll aim to adapt the product mix to the customers. I'm not sure that the concept needs to be any different from the stores at the gas stations, so it will be based on convenience."

Polikar said that he envisions a store format that averages 150 to 200 square meters in size that sells standard kiosk fare as well as produce. As for his competition, he sees convenience as his company's strong point.

"The added value will be in service and times," Polikar said. "There's plenty of room for small convenience stores; we aren't competing with Super-Sol or Rami Levy."

The convenience store industry is relatively new in Israel, with most stores less than 10 years old. However, true expansion began three years ago as gasoline retailers realized the sales potential in convenience store sales.

Polikar took over the helm of Sonol three years ago, when Sonol had 200 gas stations and 40 Sogood outlets. Since that time, Sogood has grown to 146 stores, an increase of 260 percent. It plans to open 30 more stores by the end of this year.

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