Election Day Sales May Boost October Retail Activity
Translated & summarized from Globes by baba
Israeli retail sectors, excluding tourism, saw slight declines last week, with tourism experiencing a double-digit drop due to security concerns. However, election day promotions and returning Israelis are expected to boost sales, potentially reversing the trend. Retailers are offering significant discounts, but face the challenge of competing with upcoming November sales.
The story in 5 lines · by baba
- Israeli retail sectors saw slight declines last week, with tourism experiencing a double-digit drop.
- Election day promotions and returning Israelis are expected to boost retail sales.
- The fashion and footwear sector saw a modest 1% rise, with online sales performing better.
- Retailers like Adidas, Castro, and Lee Cooper are offering significant election day discounts.
- Retailers face the challenge of convincing consumers to buy during election day sales versus waiting for November promotions.
Recent data from the Phoenix Gamma index, which tracks credit card activity and consumer behavior in Israel's retail sector, indicates a slight decline in most major consumer sectors over the past week. The tourism industry, in particular, has seen a double-digit drop. This downturn in tourism is attributed to security uncertainties and fears of further conflict with Iran, deterring Israelis from booking future vacations.
However, the upcoming election day, a national holiday, is expected to potentially reverse this trend. The influx of Israelis returning to the country for the elections could boost airlines and the hospitality sector. The Phoenix Gamma index suggests that the election day, coupled with special promotions announced by various retailers and brands, might significantly impact October's retail performance, which is typically a moderate month between the High Holidays and November sales.
Specifically, the electronics sector experienced a 9% decrease in purchase volume last week, despite an average transaction value increase of 6% to 1,611 shekels. The number of transactions fell by 13%. The fashion and footwear sector saw a modest 1% rise in purchase volume compared to the previous week, with online sales showing a stronger performance with a 9% increase in purchase volume and a 6% rise in transactions, reaching an average transaction value of approximately 222 shekels.
Several retailers are offering significant election day promotions, including Adidas in Tel Aviv Port with 50% off the second item, Castro offering VAT-free prices with double discounts on its entire store and website, and Lee Cooper providing 30% off its entire winter collection.
Nadav Lachmani, CEO of Control at Phoenix Gamma, noted that the current week's declines represent a correction after previous increases. He highlighted the key question of whether the public will engage in significant purchasing on election day, as is typical, and the challenge for retailers to persuade consumers to buy now rather than wait for deeper November sales.
