Alon Blue Square
An Israeli private holding company with roots in cooperative grocery retail and interests spanning consumer retail, energy and real estate.
Last updated August 25, 2026
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Overview
Alon Blue Square is an Israeli private holding company based in Yakum. Its origins lie in the cooperative grocery-retail movement that developed in the Yishuv and later in Israel. The business traces its history to the Tel Aviv Cooperative Consumer Association, established in 1932, and to a broader network of cooperative consumer clubs operated through the Consumer Cooperation Union and HaMashbir HaMerkazi. These organizations were eventually consolidated into a nationwide grocery-retail group commonly known as Co-Op The Blue Square. The company’s original activity was the operation of grocery stores and related consumer businesses. During the 1970s and 1980s, the cooperative system sought to unify prices and broaden its geographical reach. Under executive director Benny Gaon, the unified organization expanded beyond its traditional cooperative-store base. It became involved in franchising and other retail formats, including an unsuccessful attempt to operate Wendy’s restaurants in Israel during the late 1980s. A separate corporate structure was created in 1991 through Co-Op Blue Square Consumer Cooperative Society Limited, in which the cooperative held a controlling interest. During the 1990s, the group expanded substantially, establishing the Super Center supermarket format and acquiring or operating businesses such as Hamashbir Lazarchan and Home Center. It also pursued or held rights connected with brands and services including IKEA, Dunkin’ Donuts and other consumer offerings. In the 2000s, the group operated or hosted Sbarro and Pelephone points of sale, founded the Mega supermarket chain for members of its Buy and Bonus loyalty club, and entered online retail through the Blue Center brand. The cooperative and its for-profit company were merged into Blue Square Israel in 1996. The company subsequently became publicly traded in the United States and Israel. The privatization reflected pressure from cooperative members who sought a market mechanism for selling their shares and eventually led to a decision by most members to dismantle the cooperative structure and dispose of its assets. In 2003, Blue Square Israel was acquired by Alon Group, the owner of energy company Dor Alon, in a transaction reported at NIS 1.4 billion. The business was subsequently known as Alon Blue Square. Over time, the group moved from being primarily identified with supermarket retail toward a diversified holding-company model. Its reported interests have included Dor Alon, Blue Square Real Estate, retail chains and brands such as Mega Home, Na'aman and Vardinon, as well as interests in 103fm. The retail business experienced severe financial stress in 2015. Mega entered receivership and the related business became insolvent. In 2016, Moti Ben-Moshe acquired full control of Alon Blue Square, turning it into a private company. The group later expanded its real-estate exposure: in December 2019 it acquired the Gindi family’s 50% interest in the TLV Fashion Mall in Tel Aviv for NIS 225 million, making it the sole owner according to the cited reference material. In 2020, the company was also reported as one of the bidders for a 20% interest in Israel Post. Alon Blue Square should therefore be understood as a corporate group and holding company rather than as a single supermarket banner. Its historical consumer-retail operations remain central to its identity, but its business scope has also included energy, property and other investments. The exact current portfolio, operating subsidiaries and management structure require verification against contemporary corporate disclosures.
History
Alon Blue Square developed from Israel’s cooperative grocery-retail movement. Its historical origins are traced to the Tel Aviv Cooperative Consumer Association, founded in 1932. That association and similar consumer clubs operated within a cooperative system linked to the Consumer Cooperation Union and HaMashbir HaMerkazi. In 1970, grocery-store clubs were brought together in a union intended in part to standardize grocery prices for unionized workers. In 1972, the Tel Aviv organization merged with cooperative clubs in the Sharon region, Ashkelon and Beersheba. During the remainder of the decade, the consolidated organization adopted the name Co-Op The Blue Square, with Benny Gaon serving as executive director. The group broadened its activities beyond conventional cooperative grocery stores. In 1987 it became the Israeli franchisee of Wendy’s and opened six branches, but the venture failed. In 1991, the cooperative established Co-Op Blue Square Consumer Cooperative Society Limited, retaining an 82% interest. The company employed approximately 3,000 people at that stage, according to the cited reference. Expansion accelerated during the 1990s, when the group created the Super Center supermarket chain and operated or acquired other retail businesses, including Hamashbir Lazarchan and Home Center. It also held or pursued franchise and operating rights associated with IKEA and Dunkin’ Donuts. The cooperative holdings and the for-profit company were combined in 1996 as Blue Square Israel. The company later completed public offerings in New York and Israel. This transformation was connected to the privatization of the cooperative: many members had been required to purchase shares in earlier decades but later wanted the ability to sell them on the open market. In 2002, most members voted to dismantle the company and sell its assets. In 2003, Alon Group acquired Blue Square Israel for a reported NIS 1.4 billion. Alon Group owned Dor Alon, an energy company, and the acquired business became Alon Blue Square. During the 2000s, its activities included the Mega supermarket chain, which was aimed at members of the Buy and Bonus club, as well as online retail through Blue Center. The group also operated Sbarro and Pelephone stands in stores and held interests in several retail and service businesses. Financial pressure intensified in 2015, when Mega entered receivership and became insolvent. In 2016, Moti Ben-Moshe acquired the company in full and Alon Blue Square became private. The post-2016 group was described as a diversified holding company rather than solely a supermarket operator. Its reported holdings included Dor Alon, Blue Square Real Estate, Mega Home, Na'aman, Vardinon and interests in the radio station 103fm. Earlier holdings or associated businesses included Doctor Baby, Kfar HaSha'ashu'im, YouPhone, the Israeli Diners Club franchise and Israel Post’s newspaper. The company’s real-estate activity became more prominent when it acquired the Gindi family’s remaining 50% interest in TLV Fashion Mall in December 2019, making it the sole owner. In 2020, it was identified as a bidder for a 20% stake in Israel Post. The company was also included in a United Nations database concerning businesses connected with Israeli settlements in occupied territories, a matter that generated criticism. Because the group’s assets and subsidiaries have changed repeatedly, its current portfolio should be confirmed through up-to-date company records rather than inferred solely from its historical retail identity.
- 2019
TLV Fashion Mall became wholly owned
[1]The company acquired the Gindi family’s remaining 50% stake in TLV Fashion Mall.
- 2016
Company became privately controlled by Moti Ben-Moshe
[1]Moti Ben-Moshe completed the acquisition of Alon Blue Square and took full control.
- 2015
Mega entered receivership
[1]Financial difficulties led to the Mega supermarket chain entering receivership and subsequent insolvency.
- 2003
Acquisition by Alon Group
[1]Alon Group acquired Blue Square Israel, after which the business became known as Alon Blue Square.
- 2002
Members voted to dismantle the cooperative structure
[1]Most cooperative members voted to dismantle the company and sell its assets.
- 1996
Blue Square Israel created
[1]The cooperative holdings and for-profit company were merged into Blue Square Israel, which later became publicly traded in New York and Israel.
- 1991
Co-Op Blue Square consumer company established
[1]A new corporate vehicle was created, with the cooperative holding an 82% stake.
- 1987
Wendy’s franchise launched in Israel
[1]The group became the Israeli Wendy’s franchisee and reached six branches before the venture failed.
- 1972
Regional cooperative clubs merged
[1]The Tel Aviv club merged with organizations from the Sharon region, Ashkelon and Beersheba.
- 1970
Grocery clubs formed a national union
[1]Cooperative grocery-store clubs joined in an effort to unify prices across the country for unionized workers.
Products and positioning
Israeli diversified holding company rooted in food and everyday-goods retail, with additional interests in energy and real estate.
Supermarket chain
Mega
Mega was a supermarket chain developed within the Blue Square group and positioned toward members of the Buy and Bonus club. It became one of the group’s most visible retail businesses before entering receivership during the group’s 2015 financial crisis and subsequently becoming insolvent.
Supermarket format
Super Center
Super Center was a supermarket chain or format created during the group’s expansion in the 1990s. It represented the company’s effort to extend its cooperative grocery base through larger-scale modern retail locations.
Online retail · 2002
Blue Center
Blue Center was the group’s online-retail initiative, launched as Blue Square entered internet commerce in the early 2000s. Available reference material identifies the brand but does not establish its current operation or complete product assortment.
Hardware and household retail
Home Center
Home Center was a hardware and household-goods retail chain operated or acquired during the group’s 1990s expansion. It extended Blue Square’s consumer proposition beyond food into home improvement and everyday household merchandise.
Shopping mall
TLV Fashion Mall
TLV Fashion Mall is a Tel Aviv shopping-mall property in which Alon Blue Square acquired the remaining 50% stake in December 2019. The transaction made the company the sole owner according to the cited reference.
Controversies
2020
United Nations database listing concerning settlement-linked business
The United Nations included Alon Blue Square in a database of companies involved in business activities related to Israeli settlements in the West Bank, including East Jerusalem, and the occupied Golan Heights. The listing prompted criticism and is politically and legally contested in the broader context of the Israeli-Palestinian conflict.
Brand decisions
2019
Acquisition of the remaining TLV Fashion Mall stakeM&ABackground
Alon Blue Square already held a 50% interest in the Tel Aviv shopping mall.
Action taken
The company purchased the Gindi family’s remaining 50% stake and became the sole owner.
Aftermath
The transaction increased the group’s direct exposure to commercial real estate and retail property.
Purchase price. NIS 225 million (December 2019)
2016
Full acquisition by Moti Ben-MosheM&ABackground
The company had experienced financial distress following the collapse of the Mega supermarket business.
Action taken
Moti Ben-Moshe acquired Alon Blue Square in full, making it a private company.
Aftermath
Control shifted to Ben-Moshe and the group continued as a privately held, diversified holding company.
2003
Alon Group acquisition of Blue Square IsraelM&ABackground
Blue Square Israel was undergoing ownership and structural changes after the cooperative members’ decision to dismantle the existing organization.
Action taken
Alon Group acquired Blue Square Israel and the business adopted the Alon Blue Square name.
Aftermath
The group became part of a wider corporate structure connected to Dor Alon and later developed interests beyond supermarket retail.
Reported acquisition value. NIS 1.4 billion (2003)
1996
Consolidation into Blue Square IsraelStrategyBackground
The cooperative holdings and the associated for-profit company were being reorganized as part of a broader privatization process.
Action taken
The entities were merged into Blue Square Israel, which later accessed public capital markets in New York and Israel.
Aftermath
The restructuring moved the organization away from its original cooperative model and toward a conventional corporate structure.
Recent events
- 2020
Alon Blue Square reported among bidders for a stake in Israel Post[1]
M&A · Other
Alon Blue Square was reported as one of the bidders for a 20% interest in Israel Post.
- 2019
Alon Blue Square acquired the remaining interest in TLV Fashion Mall[1]
M&A
In December 2019, the company acquired the Gindi family’s 50% stake in TLV Fashion Mall, becoming the mall’s sole owner.
- 2016
Moti Ben-Moshe acquired full control of Alon Blue Square[1]
M&A · Leadership change
Moti Ben-Moshe fully acquired Alon Blue Square, after which the company became privately held.
- 2015
Mega supermarket chain entered receivership[1]
Bankruptcy · Other
Alon Blue Square encountered serious financial difficulties, and its Mega supermarket chain entered receivership. The retail business subsequently became insolvent.
Sources1 sources
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