Retail in 2024: The big picture
The Israel-Hamas war severely disrupted the retail environment throughout 2024. Many businesses faced labour shortages, due to military mobilisation.
Grocery retailers thrive amid Israel-Hamas war
While many sectors suffered from the impact of the Israel-Hamas war, grocery retailers experienced positive current value growth. Several factors contributed to this trend, including reduced international travel due to flight cancellations and limited airline operations, which kept more locals at home and shopping for essentials.
Polarised spending reshapes the market
The market is undergoing a clear shift away from mid-level offerings, with consumers increasingly gravitating toward both premium and budget-friendly options. While this trend has been evident in the grocery sector for some years, it is now expanding across multiple industries as inflation and the rising cost of living reshape spending habits.
What next for retail?
In response to the escalating deficit resulting from the Israel-Hamas war, the Israeli government has implemented tax increases for 2025. Notably, the VAT rate has risen from 17% to 18%, effective 1 January 2025.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in Israel, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in Israel report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Israel?
- Which are the leading retailers in Retail in Israel?
- How are products distributed in Retail in Israel?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Israel?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in Israel
Retail in 2024: The big picture
Grocery retailers thrive amid Israel-Hamas war
Polarised spending reshapes the market
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Jewish New Year
Passover
DISCLAIMER
Convenience Retailers in Israel
KEY DATA FINDINGS
Competition has intensified in recent years
7-Eleven exits Israel
Wolt Market expands as demand for fast delivery services grow
Rising grocery prices could lead to shift in purchasing behaviour
Rapid grocery delivery to reshape market
Security concerns will sustain demand for convenience stores
Supermarkets in Israel
KEY DATA FINDINGS
Shifting consumer behaviour drives growth
Carrefour sees significant expansion
Dutch chain SPAR enters the market
Supermarket shoppers to face further price hikes
Questionable future for SPAR
Electra reportedly weighing sale
Discounters in Israel
KEY DATA FINDINGS
Growing preference for dining at home boosts grocery sales through discounters
Rising grocery prices drive consumers towards discounters
Israel-Hamas war sparks stockpiling behaviour
Discounters to retain momentum as grocery prices rise
Delayed expansion plans poised for acceleration
Osher Ad to implement innovative technology
Small Local Grocers in Israel
KEY DATA FINDINGS
Small local grocers struggle to compete
Focus on technology to enhance customer convenience
Anise closes many outlets
Flat performance for small local grocers
Experiential retail will play greater role
Market will remain fragmented
General Merchandise Stores in Israel
KEY DATA FINDINGS
Improved performance in 2024
Variety stores gain traction amid economic uncertainty
Supply chain disruptions pose challenges
Department stores face uncertain outlook
Tax hikes will push consumers towards budget-friendly retailers
Variety stores to compete with other retail formats
Apparel and Footwear Specialists in Israel
KEY DATA FINDINGS
Tough year for apparel and footwear specialists
Shift towards domestic spending fails to ignite demand
Major retailers restructure amid market slowdown
Ongoing economic and political uncertainty to weigh on consumer spending
Logistics firm’s financial collapse threatens apparel supply chain
Global players to invest in Israeli market
Appliances and Electronics Specialists in Israel
KEY DATA FINDINGS
Ongoing war impacts consumer spending
Issues with Turkish imports
Worker shortages and construction delays impact the market
Import reforms push up air conditioner prices
Euronics to enter local market
Return of overseas travel could impact domestic electronics sales
Home Products Specialists in Israel
KEY DATA FINDINGS
Modest growth amid sluggish construction
Retailers adjust inventory levels amid higher domestic demand
Pet store market attracts major investors
Possible changes to home furnishing landscape
Home improvement stores face growing competition
Golf unveils plan to downsize its outlets to increase profitability
Health and Beauty Specialists in Israel
KEY DATA FINDINGS
Shift from luxury to accessible beauty
Israeli pharmacy market faces new regulations
Increasing competition in optical goods
Low-cost beauty segment will continue to expand
Stronger regulations could affect Super-Pharm’s expansion
Good-Pharm to open more outlets
Vending in Israel
KEY DATA FINDINGS
Israel-Hamas war has negative impact on sales
Cibus makes deal with Nayax
Class lawsuit against Mashkar and Mashkat over credit card fees
Market should benefit from greater stability
OTC medications may be offered through vending machines
Competitive status quo unlikely to change
Direct Selling in Israel
KEY DATA FINDINGS
Direct selling retains niche presence
Herbalife launches protein bars
Retailers adapt to evolving consumer preferences
Market will remain niche
Consumer health products offer growth potential
Direct selling companies will attempt to tap into consumer trends
Retail E-Commerce in Israel
KEY DATA FINDINGS
Israel-Hamas war provides boost to local online retailers
Azrieli Com shuts down its e-commerce platform
Temu breaks into local market
International retailers expected to recover
Ali Express opens Up new distribution centre in Tel Aviv
Possible end to VAT-free orders
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Retail research and analysis database.
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