Israelis Cut Back: Supermarket Sales Volumes Decline

Israelis continue to feel the impact of the cost of living, which is reflected in their shopping habits. Data from StoreNext shows a decrease in the quantity of consumer goods purchased in the second quarter, as shoppers become more cautious with their expenses.

According to the data, monetary sales in the consumer goods market fell by 1.5% compared to the same quarter last year. However, when neutralizing the effect of price hikes, the picture becomes clearer: the real sales volume, reflecting the actual quantity of products purchased, dropped by 3.6%.

The decline was felt across almost all consumption categories, led by the food sector. Although food prices rose by approximately 2.4% compared to the same period, the real volume of purchases in this category fell by 3.8%. This means consumers are not only paying more for certain items but are also leaving the supermarket with fewer goods in their carts.

Industry experts explain that consumers have become more price-sensitive, dedicating more time to comparing prices, seeking promotions, and switching to cheaper brands or private labels. Simultaneously, retail chains are attempting to counter the decline in demand by expanding discount promotions beyond food products. In recent months, some chains have launched promotions on electrical appliances, smartphones, and even vehicles to boost customer traffic and basket size.

Despite the decrease in the quantity of goods sold, total monetary sales for the first half of the year rose to 32.6 billion shekels, an increase of 4.7% compared to the same period last year. According to StoreNext, this growth is primarily driven by price increases, alongside the impact of the holiday season and shifts in consumption patterns due to the war.

Industry analysts estimate that as long as the cost of living continues to burden households, consumers will remain cautious, focusing on promotions and ways to lower their shopping costs. Globally, major food companies are already preparing for potential demand softening by promoting efficiency programs to cope with changing consumer habits.