Israeli Malls Embrace Entertainment to Compete for Customers’ Time and Attention
Israeli shopping malls are transforming their traditional retail offerings to remain relevant amid changing consumer habits, especially as many shoppers prefer online deals or purchases abroad. To attract visitors and boost revenue, malls are increasingly incorporating entertainment elements such as rooftop paddle courts, extreme sports parks, concept restaurants, exhibitions, and gaming zones, a trend known as retailtainment, which blends retail with entertainment to make shopping an experience.
Yaniv Feinshneider, CEO of Seven Stars Malls by Heftsiba, highlights that malls now compete primarily for customers’ time rather than just their money, noting that over 75% of Millennials and Gen Z prefer experiences over physical products. For example, Seven Stars Mall in Herzliya invested about 50 million shekels to open Gravity Park, a children’s amusement park, and plans to add two restaurants soon. Similarly, the Seven Stars Mall in Eilat launched a new rooftop restaurant with a 10 million shekel investment.
Other malls are following suit: Gold Mall in Rishon Lezion plans a rooftop complex with four paddle courts, a Thai chef’s restaurant, a bar, and open seating. Yossi Lagziel, the mall’s CEO, emphasizes the need to innovate beyond typical brand stores to draw visitors. Last year, the mall hosted a 1,000-square-meter Rubik’s Cube exhibition and this year opened "Build City," an interactive construction-themed exhibit for children.
Ranen Mall in Ra’anana, part of the JTLV group, is also evolving, with CEO Dror Okashi describing the shift as an "evolution of malls." The mall is adding Israel’s largest paddle complex with 12 courts on its parking tower, costing 8 million shekels, and expanding its billiards hall. Ranen invested about 50 million shekels in renovating the mall’s appearance to create an airport lounge-like atmosphere.
At Kanyon Arim in Kfar Saba, CEO Meital Menshes says the mall is updating its business mix and opening new restaurants like Port 19 to shift focus from shopping to experience. Dizengoff Center in Tel Aviv has long embraced this approach, combining retail with architecture and entertainment. CEO Dan Filts notes the center hosts numerous events, including sports, gaming, wine, coffee, and cinema, which help increase visitor dwell time and revenue. Filts believes many malls regret removing cinemas, now seen as valuable for enhancing the shopping experience and customer loyalty.
