Bought a New TV for the World Cup? These Sectors Are Seeing Revenue Growth
The computer and mobile phone sector recorded the largest increase in credit card purchase turnover last week, while the fashion and footwear sector posted the sharpest decline, according to Phoenix Gamma Index data that tracks credit card activity and consumer behavior in Israel's retail sectors. Thursday, June 1, was the strongest shopping day of the week.
The turnover in the computer and mobile phone sector rose by 12%, as a result of a 7% increase in the number of credit card transactions and a 5% rise in the average purchase amount, which stood at NIS 628. Most purchases were made in physical stores, where credit card purchase turnover rose by 8% and the average transaction value increased by the same rate.
The travel and tourism sector also recorded an increase for a second consecutive week, with purchase turnover rising by 4% due to a 3% increase in the number of transactions. This comes after an 82% jump in purchase turnover the previous week. However, that comparison was against the Shavuot holiday, when there were fewer working days. This is a volatile sector, heavily affected by the security situation, and a current example is a single day of fighting with Iran, which was enough to prompt flight cancellation notices from airlines such as Wizz Air and Austrian Airlines. In recent weeks, however, there has been intense competition in the sector, mainly among credit card companies offering aviation-related benefits ahead of the summer, which could affect revenue turnover.
High purchase volumes in most sectors should be noted. On an annual basis compared with May 2025, most sectors are up and posted higher purchase turnover. The electrical appliances sector, for example, rose by 12% compared with May last year, thanks to a 6% increase in the number of transactions and an increase of about 5% in the average transaction value, which stands at NIS 1,515, compared with NIS 1,442 in May last year. The increase is attributed to football fans preparing for the World Cup, which opens this week, by purchasing television screens and projectors.
In contrast to the increases in most sectors compared with last year, the fashion and footwear sector saw a 10% decline in turnover. Compared with the previous week, it also posted a negative figure of 8% minus, due to a 6% drop in the number of transactions and a 2% decline in the average purchase amount. Phoenix Gamma says the reason may be that after Shavuot and the launch of holiday and summer collections, there is a natural drop in the number of purchases.
Nadav Lachmani, CEO of Control, part of Phoenix Gamma, pointed to a move made this week in the Knesset: "Following the lowering of the VAT exemption ceiling from $130 back to $75 on purchases and orders from international websites, we expect Israel's retail sectors, and particularly the fashion and footwear sector, to benefit."
