Back-to-School Shopping Drives Surge in Fashion, Electronics, and Mobile Sales in Israel

Following several weeks of increased spending on vacations and entertainment, Israeli consumers shifted their focus last week toward back-to-school preparations and end-of-summer sales. This change boosted key retail sectors such as fashion, computers, and electrical appliances, which recorded the highest growth in credit card purchase volumes, according to data from the Phoenix Gamma index that tracks credit card activity and consumer behavior in major retail sectors.

The three leading sectors saw an overall 12% increase in sales. In fashion and footwear, the number of transactions rose by about 10%, with an average purchase amount of 189 shekels. Online sales showed particularly strong growth, with basic clothing and footwear increasing by approximately 20%, compared to 9% in physical stores. Boutique fashion online sales surged 26%, outpacing the 16% rise in-store.

The computers and mobile sector experienced a 6% increase in both transaction numbers and average purchase value, which reached 596 shekels. Electrical appliances had an average transaction value of 1,538 shekels, though total sales in this sector remain about 13% lower than the same period last year.

Meanwhile, the tourism sector's growth slowed, with only a 2% increase in total purchase volume despite an 11% jump in transaction numbers. This was due to an 8% decline in average transaction size, possibly reflecting a shift toward shorter, less expensive vacations as summer ends.

Nadav Lachmani, CEO of Control at Phoenix Gamma, noted that the data reflects a shift in consumer priorities from leisure spending to back-to-school readiness, a trend expected to intensify approaching September 1st.