Israeli Shoppers Spend More in July, But Mall Store Sales Decline

Despite a record high in credit card spending in July 2026, sales in Israeli malls and shopping centers fell compared to the previous year. Data from RIS, a performance comparison system, shows that sales in approximately 2,800 identical stores, those operating both this year and last, dropped by about 2.5% compared to July 2025. Regional malls saw a 3% decline, while power centers like Big complexes experienced a 2.5% decrease.

This divergence indicates that although Israelis increased their overall expenditures, the growth did not benefit mall retailers. Instead, spending shifted towards tourism, entertainment, services, and online purchases. Online daily purchases averaged 1.031 billion shekels in July, significantly surpassing physical store transactions, which averaged around 740 million shekels.

The comparison base also affects the results, as July 2025 saw a sharp spending rebound following Operation "With the Lion" and prior economic restrictions, possibly reflecting pent-up demand that inflated last year’s figures. This makes the current year’s sales appear weaker against a high benchmark.

However, some malls bucked the trend with notable sales increases per square meter. Oranim Mall led with a 19% rise, followed by Big Karmi Gat at 18%, and Tzim Beit Shean at 14%. Big Fashion Glilot and Dizengoff Center also posted gains of 7% and 6%, respectively.

With half of the summer vacation behind, the data highlights a shift in Israeli consumer behavior away from traditional mall shopping towards other sectors and online platforms.