Israeli Shoppers Abroad Drain Malls as Summer Travel Surges

Israeli retail sales in malls experienced a notable decline during the summer vacation months, with regional malls seeing a 3.5% drop in sales per square meter in July and August compared to the previous year. This trend, according to data from the company Retail, which monitors 2,800 stores, is attributed primarily to a significant increase in Israelis traveling abroad.

Power centers, a type of open-air shopping complex, fared slightly better with only a 1% decrease in sales. Nationally, the average decline in mall sales per square meter for the summer period was 2.5%. August alone also showed a decrease, with regional malls down 2.5% and open shopping centers down 1.5%, resulting in a national average sales drop of approximately 1% for the month.

This pattern of decreased summer sales is not unprecedented. In July-August 2019, malls also saw a 3.5% decrease in sales per square meter, with increased international travel cited as a contributing factor. Last summer, 2023, also showed weakness, with a 3.5% drop in July and an additional 1% in the first half of August, coinciding with high passenger traffic at Ben Gurion Airport.

Retail industry professionals believe the surge in overseas travel is the main driver behind the current sales slump. Data from the Airports Authority reveals a substantial increase in departures: 2.35 million passengers left Israel in July 2026, a jump of 620,000 from July 2025's 1.73 million. In August, approximately 2.65 million passengers traveled abroad, an increase of 385,000 compared to 2.26 million in August 2025. Overall, for July and August combined, about half a million more Israelis traveled abroad this year compared to last year.