Israeli Retailers See Strong Sales Boost on Tu B'Av Except Food Sector

Tu B'Av, known as the Israeli "Love Holiday," once again drove significant increases in consumer spending across most retail sectors in Israel during the week of the holiday. Data from the Phoenix Gamma index, which tracks credit card activity and consumer behavior, showed sharp rises in jewelry, fashion, cosmetics, and flowers, with Thursday being the peak shopping day.

The jewelry sector experienced the largest surge, with revenues jumping 70% compared to the previous week, mainly due to in-store purchases where the average spend was 1,498 shekels, nearly double the online average of 804 shekels. Flower sales grew by about 30%, primarily fueled by a 60% increase in online purchases, with an average transaction of 211 shekels. Fashion and footwear rebounded after several weeks of decline, rising 23% in sales volume, driven by a 25% increase in transactions, likely influenced by end-of-season promotions.

The only sector to see a decline was food, which dropped 5% in sales. Phoenix Gamma suggests this may be because consumers shifted part of their weekly food budget toward dining out and entertainment, as restaurant sales increased by 12% during the same period.

Nadav Lachmani, CEO of Control at Phoenix Gamma, noted that July was a strong month for Israeli retail, with Tu B'Av solidifying its status as a key consumption event. He emphasized that despite economic and security challenges, Israelis continue to spend and celebrate when given a reason.

The report also highlighted that the data reflects a broader trend of consumer behavior around holidays, with significant shifts between online and physical store purchases depending on the product category.