Israeli Holiday Spending Drops: More Transactions but Lower Average Amounts
Data released by fintech firm Hyp shows Israelis conducted more transactions ahead of the holiday but spent less overall. Turnover dropped by 6% while average transaction values fell across food, fashion, and retail sectors.
Fintech company Hyp released its pre-holiday consumer spending data on Tuesday, revealing that the Israeli public carried out more transactions but spent less money overall. During the ten days leading up to the holiday, the number of transactions rose by 2.3% compared to the same period last year, while total purchase turnover dropped by 6% and the average transaction amount decreased by 8%.
Supermarkets and Food Retail
The trend is particularly prominent in supermarkets and food chains, which serve as the primary category for holiday preparations. The number of transactions in this sector remained almost identical to the corresponding period last year, registering a negligible decline of 0.6%, whereas purchase turnover fell by 8.8%.
The average transaction amount in food chains dropped from 199 NIS ahead of last year's holiday to 183 NIS this year—an 8% decrease. In other words, Israelis are making nearly the same number of grocery trips, but the average amount spent per purchase is 16 NIS lower.
«The discrepancy between the number of transactions and the purchase turnover points to a shift in public spending patterns. Consumer activity continues and has even grown slightly, but transactions are executed in lower amounts.»
Compared to the 30 days preceding the test period, the average transaction amount at supermarkets rose by 3.4%. This figure may indicate the beginning of holiday provisioning, which slightly increases purchases relative to recent routines, even though the amount remains lower than that recorded ahead of Rosh Hashanah last year.
Non-Food Sectors and Hospitality
In non-food consumer sectors, a clearer decline was recorded. In the fashion and footwear industry, the number of transactions fell by 4.4% compared to the same period last year, while purchase turnover plummeted by 10.8%. The average transaction amount in this sector decreased by 6.7%, dropping from 297 NIS to 277 NIS.
Jewelry and cosmetics saw a 16.1% drop in transaction volume and about a 25% decrease in purchase turnover. The average transaction amount fell from 265 NIS to 237 NIS—a 10.6% decline, indicating a prioritization of essential hosting and meal expenses over non-critical purchases.
A different trend emerged in the hospitality and hotel sector. The number of transactions in this field surged by 58.1% compared to the corresponding period last year, and purchase turnover increased by 18.8%. Despite the rise in activity, the average transaction amount dropped by 25.4%, falling from 2,312 NIS to 1,724 NIS.
