Israeli Retail Sees Subdued Holiday Shopping Ahead of Rosh Hashanah
Data from the Phoenix Gamma index shows subdued pre-Rosh Hashanah consumer activity, with food sales up 9% and fashion dropping 3% as shoppers focused on back-to-school expenses.
Ahead of the upcoming Rosh Hashanah holiday, consumer activity remained subdued during the preceding week, with many households seemingly delaying their major holiday shopping.
The food sector recorded the highest increase, though it was a relatively modest 9%, according to data from the Phoenix Gamma index, which monitors credit card activity and consumer behavior across retail sectors in Israel. The growth in the food sector stemmed from a 3% increase in the number of transactions combined with a 6% rise in the average transaction amount.
Shifts in Pre-Holiday Consumer Trends
According to Phoenix Gamma, previous years followed an almost fixed pattern: about two weeks before Rosh Hashanah, shopping volumes began to surge in the fashion, electronics, home gifts, and design sectors, followed later by a spike in food purchases for holiday meals.
However, this year the picture is quite different. The fashion sector registered a 3% decline compared to the previous week, while the electronics sector saw a modest increase of just 2%. A similarly low growth rate was recorded in the gifts and home design sector, driven primarily by purchases in physical stores, whereas online activity actually weakened.
The central reason for this trend is likely the close proximity between Rosh Hashanah, the end of summer, and preparations for the new school year. Accordingly, the strongest shopping day in the surveyed week was Monday, August 31, the final day before the start of the school year.
Resilience in Jewelry and Cosmetics
Against this backdrop, two sectors stood out:
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The jewelry sector recorded an 8% increase in shopping volumes compared to the previous week, with the average transaction amount standing at 1,254 NIS.
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The cosmetics sector registered a 30% surge in online activity compared to the previous week, fueled by promotional sales.
To illustrate, the average online transaction in cosmetics stood at 327 NIS, compared to 112 NIS in physical stores.
Commenting on the findings, Nadav Lachmani, CEO of Control from Phoenix Gamma, stated:
"It appears that the public is still largely in a summer and vacation mindset, while preparations for the holidays have been postponed. In the food sector, a significant rise in demand is already noticeable, indicating the beginning of holiday preparations. As we get closer to Rosh Hashanah, we expect to see an acceleration in additional consumer sectors related to hospitality, gifting, and festive renewals."
