Israeli Retail Sees Holiday Spending Surge, Eilat and North Lead Gains

Overall credit card spending in Israel's retail sectors increased during the intermediate days of the Sukkot holiday compared to the previous week, which included Yom Kippur. However, when comparing Tuesday through Saturday of Sukkot alone to the same days in the prior week, a decrease was observed. This trend is attributed to many households potentially advancing their holiday purchases before the festival, while others traveled abroad or toured the country during the holiday itself. The food and beverage sector, including cafes and restaurants, experienced the most significant growth, with a 35% rise in spending. This increase was driven by a 25% jump in transaction volume and a 10% rise in the average transaction value. The computer and mobile phone sector saw a 27% increase in spending, with an average transaction of 703 shekels, while fashion and footwear rose by 21%, averaging 217 shekels per transaction. Eilat and the northern region of Israel recorded the most substantial increases in spending, with Eilat showing a 54% surge, primarily due to a 65% increase in transactions despite a 7% drop in average spending. The north saw a 45% increase, with many visitors exploring nature reserves and dining locally. Malls also benefited, with a 26% rise in spending, and open-air shopping centers saw a 28% increase. Nadav Lachmani, CEO of Control from Phoenix Gamma, noted that following the High Holidays, the economy is entering a transitional period. He anticipates a return to normal work and shopping routines, but also a potential slowdown in November as consumers await year-end sales and shopping events.