Alon Blue Square dates back to 1932, when it was founded as the Tel Aviv Cooperative Consumer Association. This and other cooperative consumer clubs were run by the Consumer Cooperation Union, in turn run by
HaMashbir HaMerkazi. In 1970, all grocery store clubs formed a union, owing to the desire to unify grocery prices across the country for unionized workers. In 1972, the Tel Aviv club merged with the clubs from the Sharon region,
Ashkelon and
Beersheba. Later in the decade, the unified group became called Co-Op The Blue Square, with Benny Gaon appointed as its executive director. The group had a revenue of
IL2.5 billion. In 1987, the company became the Israeli franchisee of
Wendy's, reaching six branches, but failed. The cooperative founded a new business in 1991, called Co-Op Blue Square Consumer Cooperative Society Limited, in which it held an 82% stake. At the time, the company employed about 3,000 workers. The company expanded its reach significantly in the 1990s, founding the Super Center supermarket chain. It also operated the
Hamashbir Lazarchan, bought and the Home Center hardware and household goods chain, had plans to sell
Dunkin' Donuts in the Co-Op branches, and it owned the franchise rights for operating
IKEA in Israel, but was forced to sell them. In the 2000s Blue Square operated
Sbarro and
Pelephone stands in its stores and it also founded the Mega chain, geared toward its Buy and Bonus club members. In 2002, Blue Square entered the online retail business, with the Blue Center brand. In 1996 the cooperative's holdings and the for-profit company merged into
Blue Square Israel, and had a public offering in New York under that name. In November 2000 it also had a public offering in Israel. This privatization was initiated by various members of the cooperative, who had been forced to buy its shares decades earlier, but largely weren't invested in its ideology. By the 1990s they had wanted to sell their shares on the free market, and this was only possible through privatization. In 2002, most of the members voted to dismantle the company and sell its assets. In 2003, Blue Square Israel was purchased by Alon Group, owner of the energy company Dor Alon, for billion, and became Alon Blue Square. In 2015, Alon Blue Square encountered financial difficulties. The Mega supermarket chain owned by the company went into
receivership, and the latter became
insolvent. In 2016, Alon Blue Square was fully acquired by Moti Ben-Moshe and became a private company. In December 2019, Alon Blue Square acquired the Gindi family's 50% stake in TLV Fashion Mall, a shopping mall in
Tel Aviv, for million, making it the sole owner of the property. As of 2020, the company is one of the bidders for a 20% stake in
Israel Post.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001354113|title="הדואר הוא הגוף בעל ההשפעה הכי גדולה על יוקר המחיה" ==Holdings and subsidiaries==