Israel's largest department store chain Hamashbir Lazarchan Ltd, controlled by Rami Shavit, has been hit by the growth of online retail. It is closing its 1,500 sqm branch in Tel Aviv's Gan Ha'Ir, where it has been operating for the past eight years. Hamashbir is also reducing its branch in the Kiryon mall in Kiryat Bialik in Haifa Bay from 6,400 sqm to 3,000 sqm. Hamashbir will also close its branch in the Lev Ashdod mall and open a smaller 1,800 sqm branch in Ashdod's Sea Mall.

At the same time, however, Hamashbir will open a new 2,300 sqm branch in March in a new mall in Atarot in northern Jerusalem. Some of the space vacated by Hamashbir in Tel Aviv's Lev Ha'Ir will be taken by Shufersal Ltd's pharmacy chain Be, while fashion chain Zara will move into Hamashbir's vacated space in Kiryat Bialik.