Cosmetics Sales Surge 20% as Summer Break Boosts Israeli Retail Activity

As Israeli elementary school students began their summer vacation, Thursday emerged as the strongest shopping day of the past week, according to the Phoenix Gamma index, which analyzes credit card activity and consumer behavior across retail sectors in Israel. While most consumer sectors showed minor fluctuations, the cosmetics industry stood out with a 20% increase in sales turnover. This growth was driven by a 10% rise in the number of transactions and a similar increase in average transaction value, which reached 260 shekels. The surge coincided with the start of the summer break and numerous promotions across various retail chains and online platforms like glam42.

The sports and leisure sector, including sports shoes, apparel, swimwear, and fitness equipment, also saw a 19% increase in sales turnover. This was fueled by a 16% rise in transaction volume and a 2% increase in average purchase size, which averaged 262 shekels. Notably, street stores experienced the highest growth with a 32% increase in turnover compared to the previous week, while online sales declined by 6%.

Conversely, the tourism sector recorded a slight 2% decrease after several weeks of growth, and the fashion and footwear sector saw a 5% drop in sales turnover. The decline was mainly online, with an 11% decrease, whereas malls and open-air shopping centers experienced a smaller 3% reduction.

Nadav Lachmani, CEO of Control from Phoenix Gamma, explained that the onset of the summer vacation prompted retail chains to launch discounts and promotions to attract customers. Cosmetics and pharmacy chains, for example, offered discounts and VAT-free purchases, significantly boosting their sales. However, fashion retailers' promotions have yet to translate into increased sales turnover.