Online Shopping Surges During 'Shopping IL' Event, Hurting Brick-and-Mortar Stores
Translated & summarized from Globes by baba
Israel's "Shopping IL" event, powered by Google, led to a significant increase in online sales across various retail sectors, while physical store transactions declined. The cosmetics and computer sectors saw substantial growth, with online transactions driving the surge. Consumers also boosted tourism sales, but the fashion industry experienced a dip as shoppers await deeper discounts later in November.
The story in 5 lines · by baba
- Online shopping surged during Israel's "Shopping IL" event, impacting physical stores.
- Cosmetics and computer sectors saw significant sales increases, especially online.
- Physical store sales declined as consumers shifted to online purchasing.
- The fashion industry experienced a drop, with shoppers awaiting deeper November discounts.
- Consumers used the event to book vacations amid reduced security tensions.
The recent "Shopping IL" event, held on Wednesday and Thursday and powered by Google, resulted in the strongest shopping day of the week for key retail sectors. Data from The Phoenix Group's index, which tracks credit card activity and consumer behavior, revealed a significant surge in online purchases across all sectors. Conversely, physical store sales experienced a decline.
The cosmetics industry saw a 20% increase in overall sales, with online transactions alone jumping by 106%. The average online transaction value was approximately 345 shekels, nearly triple the average of 118 shekels in physical stores.
The computers and mobile devices sector experienced the most substantial growth, with a 20% rise in sales volume compared to the previous week, driven by a massive increase in the number of transactions. The tourism sector also saw a notable 14% increase, attributed to consumers taking advantage of the sales and relative calm in security tensions to book future vacations.
In contrast, the fashion and footwear industry recorded a 5% decrease in sales, likely due to consumers anticipating more aggressive sales later in the month. While online sales in this sector climbed 37% (with footwear specifically up 82%), physical stores and malls saw a 13% drop in revenue.
Nadav Lachmani, CEO of Control at The Phoenix Group, stated that "Shopping IL proved that the battle for the consumer has moved online." He added that the public generally acted cautiously, utilizing discounts on cosmetics, computers, and fashion while saving larger purchases for the deeper end-of-month sales.
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