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developing· Economy· Updated

Israeli Shoppers Favor Overseas Trips, Hurting Domestic Retail Sales

A record number of Israelis traveled abroad during the autumn High Holidays, leading to a decline in domestic retail sales, particularly in the fashion sector. A strong shekel, a weaker dollar, and the return of foreign airlines boosted purchasing power overseas, making shopping abroad highly attractive. This trend directly impacted domestic clothing and footwear stores, as many Israelis combined their vacations with shopping trips.

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Israeli Shoppers Favor Overseas Trips, Hurting Domestic Retail Sales
Illustration by baba

What happened

  1. 01A record 1.23 million Israelis traveled abroad in September, representing a 17% increase compared to the previous year.
  2. 02Domestic fashion retail sales decreased by an average of 1.6% during the autumn High Holidays period.
  3. 03Some Israeli retail chains reported revenue drops of up to 10% due to the surge in international travel.
  4. 04A strengthening shekel and a weaker dollar increased the purchasing power of Israelis shopping overseas.
  5. 05Sales in open-air shopping centers fell by 2.6%, while large regional centers saw a minor 0.1% decrease.
  6. 06Out of the total departures in September, 1.1 million Israelis traveled abroad by air.
  7. 07Unseasonably warm weather during the holiday period further delayed domestic sales of seasonal clothing.

According to the Central Bureau of Statistics, a record 1.23 million Israelis departed the country in September, representing a 17% increase compared to the previous year. Of these travelers, 1.1 million departed by air, despite high airfare prices and congestion at Ben Gurion Airport.

Data from the retail analytics firm RIS, which analyzed sales across 2,700 comparable stores from September 3 to October 4, 2026, showed an average decrease of 1.6% in fashion store sales compared to the previous year. Some retail chains reported steeper revenue drops of up to 10%. Sales in open-air shopping centers fell by 2.6%, while large regional shopping centers experienced a minor decrease of 0.1%.

Retailers also attributed the decline to unseasonably warm weather that persisted into the holidays, which delayed the purchase of seasonal clothing. Additionally, increased consumer spending earlier in the year, during the summer vacation, contributed to reduced holiday spending domestically.

Summarized by baba from the reports of 3 newsrooms. Updated

Latest report: Cursorinfo. Read Cursorinfo’s original

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