Rosh Hashanah Shopping Spree: Israeli Retail Sees Last-Minute Surge in Spending
Data from the Phoenix Gamma index reveals that last-minute Rosh Hashanah shopping drove sharp increases in Israeli retail, led by an 82% surge in nurseries and an 18% jump in fashion sales.
Many Israelis are known for leaving things to the last minute, a trend clearly reflected in holiday shopping for Rosh Hashanah, according to data from the Phoenix Gamma index, which tracks credit card activity and consumer behavior in Israel's retail sectors.
On the Thursday before the holiday, a sharp surge in spending and peak activity was recorded, while the holiday eve itself (Friday) also saw exceptionally high activity in malls and shopping centers, particularly in the food and fashion sectors. Alongside this, shopping volumes increased in sectors that typically thrive during the holiday season—such as cosmetics, jewelry, plant nurseries, and homeware.
Surge in Fashion and Food Retail
Among the regular sectors tracked, the largest increase this week was recorded in the fashion sector, where purchasing volume grew by 18% compared to the previous week (a roughly 10% increase in the number of transactions and about 7% in transaction value). Credit card turnover in physical stores jumped by 21%, contrasted with a 2% decline in online shopping, a figure that aligns with the fact that most purchases were made at the very last minute.
Another expected high increase was recorded in the food sector, where shopping volumes rose by approximately 14% compared to the previous week, driven by a 6% increase in transaction count and a 9% rise in average transaction value. The most significant growth in holiday food purchases was felt in the Jerusalem and central regions.
Seasonal Sectors and Electronics Decline
Among the seasonal sectors reviewed around holidays, plant nurseries registered the sharpest spike, with an 82% surge in shopping volumes, where the average transaction stood at 200 NIS. The jewelry sector rose by 69% in shopping volumes, driven largely by a 54% increase in credit card transactions, with the average transaction reaching no less than 1,375 NIS.
The gifts and home design sector recorded a 27% increase in shopping volume, primarily attributed to transaction count, while cosmetics turnover rose by 17% compared to the previous week.
In contrast to all of these, and unlike previous years, the electronics and home appliances sector actually registered a decline in shopping volume during the Rosh Hashanah week. Phoenix Gamma experts point to the proximity of the holidays to the end of the summer vacation as a factor that left Israelis with less free time to plan electronics purchases, marking an 8% drop compared to the same period last year and a 5% decrease from the previous week.
"Unsurprisingly, after consumers delayed their holiday preparations to the very last minute due to the proximity to the end of the summer break, this past week saw a clear shift into holiday mode with sharp increases in the fashion, food, jewelry, cosmetics, nurseries, and homeware sectors," summarizes Nadav Lachmani, CEO of Control at Phoenix Gamma.
