Israel's Rosh Hashanah Shopping Sees Sluggish Demand Amid Price Hikes

Israeli retailers are facing unusually weak consumer demand ahead of Rosh Hashanah, prompting widespread sales and promotions to stimulate the market. The upcoming holiday season is marked by delayed purchasing and strained household budgets, according to ynet. Retailers reported a significant drop in pre-holiday sales compared to last year.

Experts attribute the sluggish demand to a combination of factors, including Rosh Hashanah falling at the end of the week, a tight window between summer vacations and the start of the school year, and depleted household finances. A substantial increase in Israelis traveling abroad over the summer, with Ben Gurion Airport seeing record passenger numbers, also impacted domestic retail sales, which declined by 3.5% in enclosed malls and 1% in open-air complexes during July and August.

Price trends for holiday staples are mixed. While government import quotas have made honey more affordable, with prices ranging from 12.90 to 17.80 shekels per kilogram, some smaller packages saw a 7-15% increase. Carmel grape juice prices rose by 9-18% to 17.50-18.90 shekels per bottle.

However, significant price hikes were noted for traditional holiday items. Pomegranates saw a dramatic increase, with one chain, Shufersal, reporting a 230% jump from 3.90 to 12.90 shekels per kilogram. Chicken drumsticks increased by 19-26% in several major chains, and tomatoes more than doubled in price in some stores, though competitive pricing offers some budget options. Conversely, green apples became cheaper, available for around 10 shekels per kilogram.

In an effort to boost sales, major retailers like Shufersal and Rami Levy are offering aggressive discounts, including package deals on basic items like honey, juice, and tuna for a symbolic 5 shekels with a minimum purchase. Consumer advice includes using price comparison platforms like CHP and Pricez to monitor real-time prices and save money.