Israel's Rosh Hashanah Sales Lag as Shoppers Face Higher Prices

Israeli retailers are anticipating lower sales for Rosh Hashanah this year, with consumer activity only picking up significantly in the past week, prompting supermarkets to increase discounts to spur holiday purchases. Retailers attribute the subdued expectations to the short period between August and the holiday, as well as Rosh Hashanah falling on a weekend in 2026. Many Israelis are still recovering from expensive summer vacations and the back-to-school rush.

Supermarket chains like Shufersal and Rami Levy have launched promotions, offering items such as honey, tuna, and grape juice at reduced prices. For example, Shufersal is selling select items for 5 shekels with a minimum purchase of 150 shekels, while Rami Levy has lowered the price of a 250-gram honey package to 4.90 shekels.

Sales in shopping malls also saw a late surge in gift demand, following a weak summer season. Data from RIS indicates a 2.5% decrease in mall sales in July-August 2026 compared to the previous year, with open-air complexes down 1% and enclosed malls down 3.5%. This decline is partly linked to a significant increase in Israelis traveling abroad during the summer, with passenger traffic exceeding 2.35 million in July and 2.65 million in August.

While the holiday's weekend placement might extend shopping days, it eliminates two distinct demand peaks typically seen when holidays fall mid-week. However, continuous supplier operations are expected to prevent shortages of milk and chicken. Prices for many holiday staples are higher than last year, though some promotions remain consistent. Honey prices show mixed trends, with some retailers offering lower prices due to a government tender, while others have seen increases of 7-15% on smaller packages. Pomegranates have seen the most dramatic price hike, with one chain reporting a 230% increase.

Other products like chicken thighs and frozen green beans have also become more expensive in several chains, though some discounts are available. Frozen salmon prices are varied, with some retailers offering reductions while others have increased prices. Tomatoes are generally more expensive than in 2025, with one chain showing a 103.45% price jump, though some promotions offer them at a lower cost. Green apples, conversely, have become cheaper across most chains.