Israelis Spend Less on Holiday Shopping Despite More Transactions

Fintech company Hyp released data showing a nearly 9% drop in average spending per transaction in the ten days leading up to the Jewish holiday, compared to the same period last year. While the number of transactions increased by 2.3%, the overall purchase turnover decreased by 6%, and the average transaction amount shrank by 8%.

Supermarkets saw a slight 0.6% increase in transaction volume but an 8.8% drop in turnover. The average supermarket purchase fell by 8%, from approximately NIS 281 last year to NIS 258 this year, a NIS 16 decrease per shopping trip. However, compared to the 30 days prior to this period, the average supermarket transaction amount rose by 3.4%, suggesting initial holiday preparations are underway, though still below last year's levels.

Non-food sectors experienced more significant declines. Fashion and footwear saw a 4.4% decrease in transactions and a 10.8% drop in turnover, with average spending down 6.7%. Jewelry and cosmetics saw a sharp 16.1% fall in transactions and a 25% decrease in turnover, with average spending dropping 10.6%.

These trends indicate a shift in consumer behavior, with Israelis prioritizing essential holiday food purchases over non-essential items. The data suggests that significant holiday shopping may still occur in the days immediately preceding the holiday, as butcher shops, bakeries, and fish stores showed no substantial activity increase.

In contrast, the hotel and hospitality sector saw a substantial 58.1% rise in transactions, though the average transaction amount decreased by 25.4%. This could reflect a shift towards lower-cost bookings or shorter stays.