The Mashbir LaZarchan will expand the home furnishings department in its chain of department stores. They will now carry new categories such as exclusive light fixtures, furniture, and bathroom accessories.
Among the products to be included in the stores are standing lamps, lampshades, and bedside tables. An emphasis will be placed on design.
The Ramat Aviv store will be transformed from a concept store for cosmetics into a concept store for home goods. The emphasis on cosmetics in the Ramat Aviv was not profitable in terms of total sales per meter.
The Mashbir made the Ramat Aviv store into a cosmetics concept branch when the store's area was downsized three years ago to just one floor and following attempts made by the mall to remove the store from its premises. Price wars in the perfume category made prices drop, and revenues fell accordingly.
Mashbir LaZarchan CEO Asaf Ben-David said, "We are considering turning Ramat Aviv into a regular store with significant representation within the home goods category, which has higher profitability than fashion and cosmetics. Even though fashion still makes up 40% of the chain's sales, we see the home goods department as the motor for growth and a tool for differentiation."
The Mashbir's entry into the home goods category comes alongside similar moves being made by Fox and Zara in the field with Fox Home and Zara Home.
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