2025 Developments
Retail in Israel saw moderate expansion in 2025, registering 5% growth to reach ILS202,687 million in current value sales. The market demonstrated resilience despite weak economic growth and persistent inflationary pressures that limited discretionary spending. Israel's retail landscape is highly competitive and fragmented, shaped by the rapid shifts in shopper behaviour towards price sensitivity and digital engagement. These factors have allowed discounters and retail e-commerce to outperform traditional formats in both scale and growth, with brands capable of operational agility, value-driven innovation, digital transformation, and omnichannel investment able to capture share in a market where brand loyalty is diminishing.
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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
2025 Developments
Key Data Insights
Discounters and E-Commerce Outperform Traditional Formats as Shoppers Seek Value
Wolt’S Digital Innovation Reshapes Everyday Shopping Habits
International Brands Accelerate Digital Transformation to Meet Hybrid Demand
Rami Levy’S Value Focus Narrows Shufersal’S Lead as Innovation Accelerates
Zara Launches Innovative Flagship Store
Adidas Launches Digital Transformation in Concept Stores
Informal Retail
Opening Hours for Physical Retail
Seasonality
Jewish New Year
Passover
Convenience Retailers in Israel
Key Data Insights
Convenience Retailers Summary
Wolt Accelerates Digital Convenience as Retailers Adapt to New Consumer Demands
Sonol Transforms In-Store Experience to Drive Higher Consumer Engagement
Digital Transformation Will Elevate Convenience, Supporting Category Growth
Retailers Expand Private Label and Integrate Rapid Delivery to Meet Urban Demand
Paz Oil Co Leverages Digital Loyalty to Expand Its Leading Position Despite Outlet Reduction
Supermarkets in Israel
Key Data Insights
Supermarkets Summary
Discount Appeal Reshapes Shopper Behaviour
Carrefour Leverages Ai to Boost Loyalty and Operational Gains
Retailers Deploy Ai and Omnichannel Strategies to Sharpen Value and Loyalty
Carrefour Consolidates Banners and Accelerates Share Gains with Ai
Discounters in Israel
Key Data Insights
Discounters Summary
Rami Levy Attracts Price-Sensitive Shoppers with Affordable Private Label
Fresh Produce and Dairy Lead Growth as Discounters Expand Reach
Private Label Innovation Reshapes Loyalty as Rami Levy Cuts Milk Prices
Discounters Leverage Private Label to Drive Shopper Loyalty and Price Competition
Osher Ad Adopts Checkout-Free Technology to Meet Digital-First Shopper Demands
Rising Prices and Cautious Spending Reinforce Discounters’ Growth Prospects
Shufersal’S Defensive Rebranding Opens the Door for Osher Ad’S Rapid Gains
Small Local Grocers in Israel
Key Data Insights
Small Local Grocers Summary
Essential Goods Like Fresh Produce and Bakery Drive Everyday Shopping Patterns
Neighbourhood Grocers Embrace Digital Tools to Protect Personal Service
Grocers Use Local Partnerships and Value-Led Sourcing to Counter Discounters
Discounters Accelerate Share as Independents Prioritise Personalisation
General Merchandise Stores in Israel
Key Data Insights
General Merchandise Stores Summary
Rising Appeal of Variety Stores Creates Positive Momentum
Variety Stores Attract Budget-Focused Shoppers as Demand Rises
Direct Import and Logistics Empower Private Label Innovation
Max Stock Expands Grocery Offer to Attract Budget-Focused Shoppers
Digital Integration and Policy Reforms Intensify Retail Competition
Max Stock Expands Logistics and Private Label to Defend Lead
Yochananof Divests Zol Stock to Fuel Discount Expansion
Apparel and Footwear Specialists in Israel
Key Data Insights
Apparel and Footwear Specialists Summary
Terminal X Accelerates Digital-First Shopping with Rapid Delivery and Curated Promotions
Fox Captures Value-Driven Shoppers through Aggressive Discounting
Sportswear and Casualwear Outperform as Consumers Shift Towards Versatility
Fast-Fashion and Secondhand Platforms Capture Price-Sensitive Shoppers
Mobile-First Platforms and Experiential Stores Drive Omnichannel Integration
Casualwear and Athleisure Expand as Formalwear Stagnates
Fox Wizel Acquires Youth Brands to Strengthen Fast-Fashion Retailing
Appliances and Electronics Specialists in Israel
Key Data Insights
Appliances and Electronics Specialists Summary
Digital Transformation Gains Pace to Provide Hybrid Shopping and Value Focus
Low-Cost Innovation Meets Value-Driven Consumer Demand
International Brands Expand Digital Strategies as Price-Sensitive Shoppers Drive Polarised Demand
Electra Consumer Products Expands Store Network and Launches Value Lines to Strengthen Lead
Home Products Specialists in Israel
Key Data Insights
Home Products Specialists Summary
Value-Driven Retail Formats Reshape the Competitive Landscape
Golf & Co’S Logistics Investment Drives E-Commerce Momentum
Design Shifts and Second-Hand Demand Redefine Home Environments
Regulatory Reform Enables Agile Retailers to Lower Prices and Expand Assortments
Logistics Investments Redefine Shopper Loyalty as Expectations Rise
Private Label and Exclusive Sourcing Boost Margins Amid Intensifying Competition
Fox Wizel Shows Rapid Expansion While Soltam’S Promotions Disrupt Premium Players
Health and Beauty Specialists in Israel
Key Data Insights
Health and Beauty Specialists Summary
Discount Retailers Trigger Price War in Beauty Specialists
Budget Brands Win Loyalty as Shoppers Prioritise Value and Functionality
Beauty Specialists Accelerate Growth by Merging Wellness and Technology
Cross-Category Innovation and Digital Investment Redefine Shopper Expectations
Super-Pharm Defends Its Dominance as Price Competition Intensifies
Vending in Israel
Key Data Insights
Vending Summary
Coffee and Cold Drinks Vending Operators Capture Demand for Convenience
Operators Focus on Coffee and Cold Drinks as Health Drives Demand
Cashless Vending Operators Boost Efficiency and Healthier Offerings
Operators Prioritise Contactless Payments to Meet Rising Demand for Convenience
Collaborations with Technology Firms Drive Healthier and Eco-Friendly Offerings
Mashkar Ltd Leverages Cashless Innovation to Defend Leadership
Direct Selling in Israel
Key Data Insights
Direct Selling Summary
Digital Engagement Helps to Sustain Growth Amid Cautious Spending
Herbalife Maintains a Strong Position Even as Health and Beauty Contracts
Data-Driven Personalisation Reshapes Customer Relationships through Digital Tools
Eco-Friendly Wellness Brands Capture Rising Demand for Transparency
Hybrid Selling Attracts New Sellers as Digital-First Strategies Expand
Herbalife Nutrition Accelerates Digital Transformation
Retail E-Commerce in Israel
Key Data Insights
Retail E-Commerce Summary
Temu Reshapes Shopping Habits with Aggressive Pricing and Fast Delivery
Temu Captures Parcel Volume as Local Players Adapt to New Expectations
Super-Pharm’S Omnichannel Strategy Sets a New Benchmark for Convenience
Aliexpress and Temu Marketplaces Sustain Growth as Price Competition Intensifies
Marketplace E-Commerce Capitalises on Global Reach and Low Prices
Omnichannel Investment Becomes Essential as Shoppers Demand Flexibility
Temu Leverages Discounts and Speed to Disrupt Entrenched Leaders
Country Reports Disclaimer
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, wholesale sales (e.g. Cash and Carry), and sales through cannabis dispensaries in markets where cannabis is sold legally. 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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