Supermarket Prices Rise Ahead of Rosh Hashanah Amid Weakened Competition

With just four days until Rosh Hashanah, Israeli supermarkets are experiencing lower-than-usual customer traffic, according to store managers. While some shoppers are present, the volume does not reflect the typical pre-holiday rush, with many Israelis reportedly traveling abroad. This subdued demand has led retailers to scale back on deep discounts and promotions usually seen during this period, prioritizing profit margins instead.

A price comparison conducted by the "Retail Research Institute" examined 52 products across eight supermarket chains. The study found no widespread price increases across all items, but significant hikes were noted for several products central to the Rosh Hashanah holiday meal. Avocado prices have surged by 44.3% compared to last September, followed by dry onions at a 39.3% increase, and sweet corn kernels up by 21.8%. Other notable price jumps include fresh chicken liver (21.3%), packaged carrots (19.6%), nectarines (17.2%), packaged white potatoes (16.5%), Carmel Private Collection Cabernet Sauvignon wine (16.4%), and peaches (15.5%).

Overall, fruits and vegetables show an average price increase of 7.3% year-over-year, with wine up 6.3% and fresh chicken by 4.4%. These are precisely the items that feature prominently in holiday feasts. Dr. Hazi Gor Mizrahi, founder and CEO of the "Retail Research Institute," stated that competition in the sector has weakened, leading to higher prices for consumers compared to both last year and the previous month. He explained that reduced customer traffic and sales volumes prompt chains to lessen promotional depth and price competition to protect profitability.

While prices for staples like fresh meat, salmon, and coffee have seen slight decreases or remained stable, the increases in holiday-specific items are particularly felt. The research also highlighted significant price discrepancies between different chains for the same products. For instance, fresh whole chicken varied by approximately 40% between stores, and chicken wings by nearly 39%. Similar large gaps were observed for fresh chicken schnitzel and even for a bottle of ketchup. This suggests that while average prices for some items may not have changed drastically, the choice of where to shop can still lead to substantial differences in the final bill, especially with diminished competition this year.