Hamashbir 365 Holdings Ltd. is one of Israel’s largest holding groups in the retail and loyalty club sectors. The Group is consolidated under a public company, which serves as the holding company and professional headquarters, controlling activities while considering business opportunities that fit the Group’s vision. Head office also stresses the importance of synergy between the Group’s companies including, inter alia its Club 365 subsidiary, which holds and manages the Club 365 Customer Loyalty Club. The Group’s vision is to provide a comprehensive retail solution for Club 365 members, by acquiring operations, and launching or creating new partnerships with other leading companies.
About the Company
The original Hamashbir La’Zarchan Ltd. was founded in 1947 as the Hamashbir La’Zarchan department store chain. In 2003, activities were acquired by the Shavit Group (2003) Ltd. The company’s shares have been traded on the Tel Aviv Stock Exchange since its 2007 IPO. In early 2010, the Group underwent a structural reorganization and became a holding company, splitting off its department store retail activities into a new subsidiary. The new structure of the group is as follows:
Hamashbir Department Stores Ltd.
Hamashbir Department Stores operates Israel’s only department store chain, and is one of the country’s leading trade companies. The chain has 39 branches located throughout Israel in malls and other central locations with a total commercial space of more than 100 thousand square meters. In 2012, revenue totaled NIS 1.28 billion (including New-Pharm sales points at Hamashbir stores) through the efforts of a skilled workforce of 2,000 employees and 2,100 sales assistants.
The chain provides a full range of quality products, including cosmetics; women’s, men’s and children’s fashion; clothing; lingerie; footwear; house ware; electronics and jewelry, and offers customers international brands, quality domestic products and a department store environment shopping experience.
New-Pharm Drugstores Ltd.
New-Pharm is active in cosmetics, toiletries, natural products, and general pharmacy activities. The company has 68 branches covering more than 27.5 thousand square meters, including 58 sales points located throughout the country in the traditional drugstore format, 10 medical branches, and 5 “store in store” outlets in Hamashbir department stores. Founded in 1991, New-Pharm has 1,400 employees and 500 sales assistants. Revenue in 2012 totaled NIS 1.1 billion (including revenue from sales points in Hamashbir stores).
Club 365 Ltd.
“Club 365” was founded in 2005. Most of the Group’s business development is through its Club 365, which owns Aviation Links, Cost 365, 365 Technologies and 365 Financial. Club. 365’s principal asset is its Club 365 Loyalty Club membership database of 570 thousand households and about 1 million cardholders (some households have more than one loyalty club card).
Club 365 is considered the leader of its field in Israel, offering its members a range of benefits in all fields of the chain’s operations, throughout the year.
Aviation Links Ltd.
Aviation Links was founded in 1984, with its shares publicly traded since 1993. Aviation Links is a wholesaler, organizing incoming and outgoing charter flights in the package tours and leisure market, and provides ground services and related tourism services to outgoing travelers from Israel flying to dozens of destinations.
Through its inland tourism department, the company also provides tourism and leisure services throughout Israel, and flight and related services to the business sector. Aviation Links’ revenue in 2012 totaled $ 110 million.
Cost 365 is a nationwide food chain and is expected to have 30 branches by 2015. In December 2012, its first branches (Afula and Kfar Saba) were opened to the public. Each branch is expected to cover an average of 2,500 square meters. The chain’s business model is based on a stable and loyal customer base, who are members of the Club 365 loyalty club, as part of the group’s philosophy to offer its members a variety of retail services. According to this model, the chain does not focus only on various special deals, but offers its club members’ low prices on all products throughout the year, backed up by quality and professional service.
The Group will benefit from the loyalty card fees that the members pay and the synergy created within the Group. To highlight this synergy, some of the retail outlets are expected to include branches of Hamashbir and / or New-Pharm and / or other companies of the Hamashbir Group.
365 Finance is the financial arm of Club 365. Its main objective is the promotion and development of platforms for marketing financial products to club members, using retail sales floors and Club 365 databases.
In June 2012, the Group and Club 365 signed an agreement with CAL - Israel Credit Cards, to set up a joint club credit card and the launch of a new non-bank credit card called CAL 365. The joint credit card entitles Club 365 members to fixed and variable discounts and benefits, at outlets, which are part of the 365 Coalition, services and credit products (on the credit card platform), a cash-back program, and unique promotions and discounts tailored to the customers’ buying habits.
The company was founded in 2012 to realize the potential of a technology platform, parts of which were originally developed by Cibus. The company intends to initiate other ventures, in other areas of activity of Cibus abroad, such as mobile payments as well as clearing services.
The Hamashbir Group will continue its expansion into new and synergistic business sectors, while optimizing business opportunities, including developing the Club 365 loyalty club, and commercial opportunities in various areas such as finance, Internet, and business cooperation such as with Sonol, Tzomet Sfarim and other sectors, as detailed in the chart below.