Israel's Retailers Brace for Weak Rosh Hashanah Amidst Price Hikes and Consumer Spending Shifts

Israeli supermarkets and malls are anticipating a subdued Rosh Hashanah sales period, attributing the expected downturn to the holiday's proximity to August and its falling on a weekend. While there has been a recent surge in shopping, retailers do not expect sales to match last year's figures. To stimulate purchases, major chains like Shufersal are offering product bundles for 5 shekels with purchases over 150 shekels, and olive oil for 10 shekels. Rami Levy has also reduced the price of honey. Malls are reporting a late uptick in gift purchases, following a lackluster summer season. Data from RIS indicates a 2.5% decrease in mall sales in July-August 2026 compared to 2025, with a 1% drop in open-air complexes and a 3.5% fall in enclosed malls. This decline is largely attributed to a significant increase in Israelis traveling abroad for vacation, with over 620,000 more travelers in July and an additional 385,000 in August compared to the previous year. The short interval between August and the High Holidays has limited consumer recovery time, contributing to the delayed shopping. Retailers note that consumers are now shopping but have lower expectations for the holiday, citing increased vacation spending and back-to-school expenses as reasons for the late rush. The holiday falling on a weekend is expected to boost sales days but also potentially strain supply chains, though shortages of milk and chicken are not anticipated. Prices for some items, like honey, have seen significant increases in some chains, while others offer discounts. For instance, 250g of honey has risen by 7-15% in some stores but decreased by 15.5% at Rami Levy. Grape juice prices are mixed, with some brands increasing significantly. Pomegranates have seen substantial price hikes across most chains, with Shufersal experiencing a 230% increase. Chicken thighs have also become more expensive in several chains, though some have seen price reductions. Cut green beans have generally increased in price, and frozen salmon prices show mixed trends, with some reductions and some significant increases. Tomatoes have also risen in price in most chains, though some discounts are available. Green apples have seen considerable price drops.