Israelis Cut Spending on Oct. 7 Anniversary Out of Solidarity
Translated & summarized from Globes by baba
Israeli consumer spending decreased significantly on the third anniversary of the October 7th attack as a show of solidarity, with the fashion and restaurant sectors seeing the largest drops. Overall retail sales declined throughout the week, though the electronics sector experienced a notable increase. The trend reflects how national sentiment impacts consumer behavior, with Israelis cutting back on non-essential purchases.
The story in 5 lines · by baba
- Israeli consumer spending dropped sharply on the October 7th anniversary due to solidarity.
- Fashion and restaurant sectors saw the biggest declines in sales and transactions.
- Online fashion sales fell by 53% on the anniversary day.
- The electronics sector recorded a 14% increase in sales volume.
- CEO Nadav Lachmani stated consumption is tied to national mood, impacting non-essential spending.
Consumer spending in Israel saw a significant drop on the third anniversary of the October 7th Hamas attack, as Israelis demonstrated solidarity by reducing purchases. This trend continued throughout the week, resulting in a decline across most retail sectors, according to data from the Phoenix Gamma index, which tracks credit card transactions.
The fashion and restaurant/cafe sectors experienced the sharpest declines on October 7th. Fashion retail saw a 27% decrease in sales volume and a 23% drop in transaction numbers compared to the previous Wednesday. Online fashion sales were particularly affected, falling by approximately 53%, while physical store sales decreased by about 21%. The food and beverage industry reported a 26% decrease in sales volume and a 9% drop in transactions.
Despite the economy operating normally, the public chose to spend less on leisure and non-essential items. While the comparison day fell during the Sukkot holiday, a period of typically higher consumption, the overall trend indicated a deliberate reduction in spending.
Looking at the entire week, the fashion industry recorded the largest overall decrease in sales volume, down 14% from the prior week. The number of transactions fell significantly, while the average transaction value remained stable at around 216 shekels. This decline is attributed to the transition from the holiday season to regular weekdays and a desire to save money after the holidays.
In contrast, the electronics sector has shown a positive trend for two consecutive weeks, with a 14% increase in sales volume compared to the previous week. This sector is expected to see a substantial boost from November sales promotions.
Nadav Lachmani, CEO of Control at Phoenix Gamma, commented that the October 7th data highlights the strong connection between consumption in Israel and the national mood. He noted that while essential goods purchases remained stable, spending on entertainment, fashion, and non-urgent online shopping was curtailed.
