Israeli Shoppers Abroad Hurt Mall Sales; Power Centers See Growth
Translated & summarized from Maariv by baba
Israeli retail sales per square meter dropped 2.5% in summer 2026, with regional malls hit hardest, while power centers saw growth. A surge in Israelis traveling abroad is cited as a primary reason for the decline.
The story in 4 lines · by baba
- Israeli retail sales declined 2.5% in summer 2026, with malls suffering more than power centers.
- A significant increase in Israelis traveling abroad is linked to the drop in domestic retail sales.
- Power centers and some open-air retail locations experienced sales growth despite the overall downturn.
- Specific centers like Big Fashion Galiloot and Big Karmiel reported substantial sales increases.
Retail sales per square meter across Israel saw a 2.5% decline during the summer of 2026, according to an analysis by RIS based on approximately 2,800 stores. The downturn was more pronounced in regional malls, which experienced a 3.5% drop in sales per square meter, while power centers saw a more moderate 1% decrease. However, August alone showed a slight improvement, with overall market sales down only 1% compared to August 2025. Power centers even recorded a 1.5% increase in August, while regional malls continued to struggle with a 2.5% decline.
RIS attributes the overall sales dip significantly to a surge in Israelis traveling abroad during the summer. Data from the Airports Authority indicated a substantial increase in passenger traffic, with approximately 2.35 million travelers in July 2026, a 620,000 increase from the previous year, and 2.65 million in August, up by 385,000. RIS estimates this translates to an additional half a million departures abroad in July and August compared to the prior summer.
The divergence between mall types was stark throughout the summer. While regional malls lost 3.5% of their sales per square meter, power centers only dropped 1% and even saw growth in August. Despite the general decline, several specific retail centers reported significant sales increases. Big Fashion Galiloot stood out with a 10% rise in sales per square meter for July-August, and other centers like Big Karmiel (12.5% increase) and Ofer Marom (9% increase) also performed well.
August saw even higher growth rates at some locations. Big Fashion Galiloot climbed 13%, G Kfar Saba rose 8%, and Big Karmiel saw a 4% increase. In the broader category of centers with high sales per square meter, Big Karmiel led with a 16% surge in August compared to the previous year, followed by strong performances from Ofer Marom (13%) and Ofer Center Nof HaGalil (9%).
In summary, the RIS data reveals a mixed retail market. While national sales, particularly in regional malls, decreased, some power centers and open-air retail locations managed to achieve growth. This occurred against the backdrop of a summer with a significantly higher number of Israelis traveling abroad compared to the previous year.
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