Israeli Consumers Favor Physical Stores Over Online Shopping

Israeli consumers are increasingly returning to brick-and-mortar stores, shifting away from the dominance of online shopping. Recent studies indicate a change in purchasing behavior, where shoppers prioritize perceived value, including quality, service, and immediate availability, over simply finding the lowest price. Deloitte's 2026 retail forecasts suggest that 40% of consumers actively seek promotions and better value, not just the cheapest option. Industry leaders believe this trend reflects a deeper shift in consumer habits, not just a reaction to the rising cost of living.

Factors beyond price significantly influence purchasing decisions, with up to 40% of perceived value stemming from quality, service, and convenience. An Optimove study found that 81% of respondents consider product quality important, compared to 70% for price. Moti Azoulay, a consumer behavior researcher, explains that consumers want to feel they've gotten the best deal, considering factors like delivery time, purchase uncertainty, return ease, and immediate possession when comparing online and in-store prices.

This desire for immediacy could benefit shopping malls. A holiday shopping survey by Optimove revealed that while promotions encourage early purchases for 78% of respondents, product availability is cited by 67%, and shorter delivery times by 40%. Online delivery expectations are also rising, with consumers now expecting free delivery in an average of 2.6 days, down from 3.5 days previously, and 94% citing free delivery as a key purchase influencer.

Physical stores retain advantages, especially in fashion, allowing customers to try on clothes and assess quality directly. While e-commerce still offers benefits like wider selection and price comparison, the key consumer question may be shifting from 'where is it cheapest?' to 'how much am I willing to save by waiting?'.