Holiday Shopping Slows as Rosh Hashanah Nears Amid Back-to-School Rush

Consumer spending in Israel has been sluggish in the week leading up to Rosh Hashanah, with many Israelis apparently delaying major holiday purchases. This slowdown is attributed to the close proximity of the Jewish New Year holiday to the end of summer and the start of the new school year. The strongest shopping day of the week was Monday, August 31, the last day before schools reopened.

While the food sector saw a 9% increase in credit card activity, driven by a 3% rise in transaction volume and a 6% increase in average transaction value, other retail sectors have not experienced the usual pre-holiday surge. In previous years, significant growth in fashion, electronics, and home goods typically began two weeks before Rosh Hashanah, followed by a jump in food purchases. This year, however, fashion sales are down 3% from the previous week, and electronics saw only a modest 2% increase. Home goods and gift sales saw a similar low increase, with online activity weakening while physical store sales remained steady.

Exceptions to the trend include the jewelry sector, which saw an 8% rise in shopping volume with an average transaction of 1,254 shekels, and the cosmetics industry, which experienced a 30% surge in online activity due to promotions. Average online cosmetic purchases were 327 shekels, compared to 112 shekels in physical stores.

Nadav Lachmani, CEO of Control at The Phoenix Gama, noted that the public appears to still be in a summer vacation mindset, with holiday preparations postponed. He anticipates a pickup in demand for hospitality, gifts, and home goods as Rosh Hashanah approaches, with food demand already showing signs of holiday preparation.