Israeli Consumer Spending Surges in Last-Minute Rosh Hashanah Shopping

Israeli consumers demonstrated a strong preference for last-minute shopping in the lead-up to Rosh Hashanah, according to data from the Phoenix Gama index, which tracks credit card activity and consumer behavior in Israel's retail sectors. A significant surge in spending and activity was recorded on the Thursday before the holiday, with high activity continuing in malls and shopping centers on Friday, the eve of the holiday itself, particularly in the food and fashion sectors.

Among regularly tracked sectors, fashion saw the largest increase in purchase volume, rising 18% compared to the previous week. This was driven by a 10% increase in transaction numbers and a 7% rise in average transaction value. Physical store credit card volumes increased by 21%, contrasting with a 2% drop in online sales, aligning with the trend of last-minute purchases. The food sector also experienced a notable increase, with purchase volumes up by approximately 14%, fueled by a 6% rise in transaction numbers and a 9% increase in the average transaction value. The Jerusalem and Central regions saw the most significant growth in holiday food purchases.

Seasonal sectors also experienced substantial boosts. The plant nursery sector recorded the sharpest rise in purchase volume, up 82% with an average transaction of 200 shekels. The jewelry sector saw a 69% increase in purchase volume, largely due to a 54% rise in credit card transactions, with an average transaction value of 1,375 shekels. Gift and home decor sectors saw a 27% increase in purchase volume, attributed to a rise in the number of transactions, while the cosmetics sector's turnover grew by 17%.

In contrast to previous years and other sectors, electronics and appliances experienced a decline in purchase volume during the week of Rosh Hashanah. Phoenix Gama suggests that the proximity of the holidays to the end of the summer vacation may have left Israelis with less time to plan for major electronics purchases. This sector saw an 8% decrease compared to the same period last year and a 5% decrease from the previous week.

Nadav Lachmani, CEO of Control at Phoenix Gama, summarized the trend, noting the clear shift into holiday shopping mode with sharp increases in fashion, food, jewelry, cosmetics, plant nurseries, and home goods, following consumers' delayed preparations due to the holiday's timing after the summer break.