Election Day Spending Surges 37% as Israelis Flock to Malls

Israel's election day, a national holiday, transformed into a major shopping and entertainment event, with credit card spending surging by approximately 37.5% compared to the previous election day. Between 8:00 AM and 2:00 PM, consumers spent around 731 million shekels using debit cards, according to data from Shva, the national payment system operator. This figure represents a significant increase from the previous election day's 532 million shekels during the same hours and a 5% rise compared to the local elections day, which saw 696 million shekels in spending. The peak of activity occurred around 12:40 PM, with over 15,500 transactions totaling approximately 3.6 million shekels in a single minute.

Major retail chains, including fashion, footwear, and cafes, capitalized on the holiday, offering limited-time promotions to attract consumers. Mall operators reported substantial increases in visitor numbers and transaction volumes. Ofer Malls, part of Melisron, saw a 30% rise in visitors and triple the usual redemption rate, with fashion, home goods, cafes, and restaurants being popular choices. Azrieli Malls also experienced triple the usual traffic during peak hours, preparing for the day like a holiday eve with extended hours and increased staffing for cleaning and security. BIG Gdealot recorded over 17,000 entries, with nearly 7,000 visitors present simultaneously at one point, describing the day as busier than a regular Friday, holiday eve, or intermediate holiday day.

Data from the fintech company Hyp revealed specific sector trends. Fashion transactions nearly tripled, with the average transaction value increasing from 279 shekels to 327 shekels. Restaurant transactions rose by 10%, and the average amount spent per transaction increased by 50%, from 50 shekels to 75 shekels. Conversely, food delivery transactions saw a sharp decline, likely due to people being out of their homes and offices.

While overall spending increased, Counterpoint, a company monitoring mall traffic, presented a more nuanced picture regarding visitor numbers. By noon, their sample showed a 20% decrease in mall entries compared to the previous election day but a 38% increase compared to a regular Tuesday. This suggests that while the election day was stronger than a typical weekday, it was still weaker in terms of foot traffic than the previous election day, despite higher spending per card.

For real estate companies like Melisron, Azrieli, and BIG, which own malls, and for retail chains, the holiday provided a significant revenue opportunity through promotions and increased physical store traffic. For households, the surge in credit card spending may reflect both a shift in purchasing timing, bringing forward planned purchases, and genuine additional consumption. The economic impact of the election day holiday, however, comes at a cost to the broader economy, with an estimated loss of billions in gross product, even as some economic activity shifted from offices to shopping centers.