Israeli Retail Spending Rises as Consumers Return to Routine After Holidays

Israelis are returning to their routine consumer habits, with most retail sectors registering increases in credit card purchase volumes over the past week compared to both the previous week and the same period last year. Thursday emerged as the strongest shopping day, according to the Phoenix Gamma Index, which tracks credit card activity and retail consumer behavior.

The sharpest increase of the week was recorded in the fashion and footwear sector, surging by 19%. This growth was largely driven by dropping temperatures and autumn sales promotions launched by retail chains, encouraging both in-store and online purchases. For instance, Terminal X offered discounts of up to 30% on items labeled as "Just Landed", H&M introduced discounts reaching 50% to 70% on select online-exclusive items, and Castro slashed prices on jeans and trousers by 60% or more.

Transaction Dynamics and Averages

Despite the overall surge, the weekly increase stemmed primarily from a higher volume of transactions, while the average transaction size remained virtually unchanged at approximately 219 ₪. Physical brick-and-mortar stores saw an approximate 26% jump in shopping turnover, while online platforms experienced a slightly lower growth rate of around 20%.

Unlike the fashion sector, which rebounded following a previous decline, the computers and electronics sector extended its upward momentum with a 16% rise in purchase volumes compared to the previous week and a 19% increase year-on-year. The number of transactions rose by 7%, while the average transaction size climbed to 674 ₪, representing an increase of roughly 9%. Analysts note that upcoming November promotions and year-end sales are expected to propel the sector toward even more substantial turnover growth.

"After an extended period of holidays and the anniversary of October 7, this past week demonstrates a clear return to consumer routine," says Nadav Lachmani, CEO of Control at Phoenix Gamma. "Consumers are beginning to prepare for autumn and winter, which is particularly evident in the fashion sector. At the same kiel, the growth in electrical goods, computers, and cellular products signals that the market is already heating up ahead of year-end sales and November shopping events."