Why doesn't Israel have a Costco?

Israel maintains a very European lifestyle. There are markets to buy fruits, butchers for meat, and grocery stores for staples. Tel Aviv even has a store for only eggs and honey. Not all of Israel is like this. There definitively are places where people have yards with grass, SUV’s, big fridges, and even bigger homes. In Tel Aviv there simply doesn’t seem like there is room for a Costco.

The average Costco shopper, in the US, has a higher level of income than I would have guessed. I have read two separate reports that said these upper middle class shoppers have an average income of over $72,000 - $100,000 a year. If we assume that the Israeli market would also attract these higher income buyers, those who have the trunk and closet space to store all of their purchases, it becomes realistic to have a Costco. Why not bring this warehouse giant to a country that loves a good bargain?

I was on my way down south when the people I was driving with took me to a supermarket in Ber Sheva. I was in love. It looked like a Costco. Everything was big, in bulk, and cheap. The Israeli’s were shocked, who wouldn’t be. In most cities all you see are the little makolets (general stores) and grocery stores called “Super Something”.

I understand not taking up valuable real-estate in the country’s center with a Costco Warehouse, but why not the North or South? Heck, if people are willing to rent a car to drive to Ikea, and assemble DIY furniture, why not drive out to buy 100 of something at a 14% markup?

http://upload.wikimedia.org/wikipedia/commons/3/34/CostcoMoncton.JPG