Israelis Prepare for Rosh Hashanah With Cautious Spending Habits

As Rosh Hashanah approaches, Israelis are beginning their holiday preparations, including shopping for food and gifts. However, data indicates a shift towards more cautious spending, with consumers making more transactions but spending less per purchase.

According to fintech company Hyp, which analyzed purchases in the ten days leading up to Rosh Hashanah, the number of transactions increased by 2.3% compared to the same period last year. Conversely, the total purchase volume decreased by 6%, and the average transaction amount dropped by 8%.

This trend is particularly noticeable in supermarkets and food chains. While the number of transactions remained nearly unchanged, down only 0.6%, the average spending per shopping trip fell from approximately 199 shekels to 183 shekels, a decrease of 16 shekels. This suggests that while holiday stocking is underway, it is being done at a lower volume than in the previous year.

Other sectors also show reduced spending. Fashion and footwear saw a 4.4% decrease in transactions and a 10.8% drop in purchase volume, with the average transaction amount falling from 297 to 277 shekels. Jewelry and cosmetics experienced a more significant decline, with transactions down 16.1% and purchase volume down by about 25%, and the average transaction decreasing from 265 to 237 shekels.

In contrast, the hotel and hospitality sector saw a surge in activity, with transactions increasing by 58.1% and purchase volume rising by 18.8%. However, the average transaction amount in this sector also decreased by 25.4%, from 2,312 to 1,724 shekels.

Sectors directly related to holiday meals, such as butcher shops, bakeries, and fish stores, have not yet shown a significant increase in activity. Hyp attributes the cautious spending to the proximity of Rosh Hashanah to the start of the school year and significant August expenses for many families. The company anticipates a concentrated shopping surge in the final days before the holiday, leading to potential congestion for businesses.