Israeli Consumer Spending Recovers as Fashion Sector Sees Major Boost
Translated & summarized from Globes by baba
Israeli consumer spending has rebounded, with the fashion and footwear sector experiencing a significant 19% increase in sales driven by cooler weather and autumn promotions. Overall credit card transaction volumes rose across most retail sectors compared to the previous week and last year. Experts attribute this return to normalcy to consumers preparing for the fall and winter seasons and anticipating upcoming year-end sales events.
The story in 5 lines · by baba
- Israeli consumer spending has recovered, with the fashion sector seeing a 19% weekly sales increase.
- Falling temperatures and autumn sales boosted fashion purchases both online and in physical stores.
- The computer sector also showed continued growth, with a 16% increase in sales volume.
- Average transaction values remained stable in fashion, while rising in the computer sector.
- Experts see a clear return to consumer normalcy after a period of holidays and the October 7th anniversary.
Israeli consumers are returning to their usual spending habits, with most retail sectors experiencing increased credit card transaction volumes in the past week compared to both the previous week and the same period last year. Thursday marked the strongest shopping day, according to data from the Phoenix Gamma Index, which tracks credit card activity and consumer behavior in Israel's retail sectors.
The fashion and footwear industry saw the largest weekly increase, jumping 19%. This surge is attributed to falling temperatures and retailers' autumn sales, which drove purchases both online and in physical stores. For example, Terminal X offered 30% discounts on new arrivals, H&M provided 50%-70% off select online items, and Castro discounted jeans and trousers by over 60%.
While the fashion sector's growth this week was primarily due to an increase in the number of transactions, the average transaction value remained stable at approximately NIS 219. Physical stores saw a 26% rise in sales volume, while online sales increased by about 20%.
In contrast, the computer sector continued its upward trend, with sales volumes rising 16% week-over-week and 19% compared to last year. The number of transactions in this sector grew by 7%, with the average transaction value reaching NIS 674, an increase of about 9%. November and year-end sales are expected to further boost credit card spending in this sector.
Nadav Lachmani, CEO of Kontrol by Phoenix Gamma, noted a clear return to consumer normalcy after a long holiday period and the anniversary of October 7th. He observed that consumers are preparing for autumn and winter, particularly evident in the fashion industry. He also pointed to rising sales in electronics, computers, and mobile phones as indicators that the market is gearing up for year-end sales and November shopping events.