Israel - so well-known for its high-speed development of start-up businesses - is a small country of 9.2M people with one of the highest private consumption per capita in the world.

The Israeli retail market is exceptionally recognized since the country is in its exciting progression as it continues to move upward, currently standing at number 19 on the list of the world’s top 20 economies based on GDP per capita.

Here are some important highlights from the 2021  Retail Review:

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• + 15% Retail turn-over compared to 2019

• 6,000 USD PCE per capita average in 2021 (hitting its record high)

• 98% occupancy rate in retail real estate

• + 10.6 % housing prices increase

• + 10 international brands entering Israel in 2021

• 200 sqm of retail space per capita

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As we review the numbers today, we look back at the beginning of 2021 when it was difficult to be positive entering the lockdowns. The year 2021 brought uncertainties, fears, opportunities, and success!

Israel was being carefully observed by countries all over the world during  2021 due to its first and successful vaccination campaign and being the first country to come out of the lockdown series right before the spring shopping season. Interviews and reports from top managers of Israel's main developers spoke about the spring sales they have not seen for many years.

Israeli retail is not that dependent on tourism however. Therefore, when met with flight restrictions and lockdowns, it brought an unprecedented demand within local consumption. Not only online sales boomed, but local stores enjoyed an abundance of customers this year. Local brands and franchises had to keep up with the rising shopping demands of their customers. Among the success of local businesses, the hotel industry is an interesting example. As the country closed to tourists for more than a year, Israel surprisingly announced three times more sqm for the development of new hotels in 2021 than what was delivered in 2019.

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A NEW LUCRATIVE LOCATION FOR EXPANSION

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2021 started off with some exciting news of Victoria Secret arriving to the Israeli market, putting Israel on the list of most lucrative development locations.
 
Israel has been advancing in retail growth for several years now. Already from 2017 to 2019, Israel became one of the main targets in the global expansion plans of many international brands.

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The expansion to Israel did not slow down in 2021 – we welcomed the announcement of a dozen new store openings for brands such as Dior Perfume, Victoria’s Secret, Bath & Body Works, Jumbo, Flying Tiger, All Saints, & Other Stories, Petit Bateau, Scotch and Soda, 7 Eleven, Lego, Tesla and many others.

Having a 2.4% share of millionaires in the adult population with this number rising every year due to the Israeli tech boom, the market creates amazing opportunities for luxury brands.
Along with Dior Perfume opening in the best possible location in Jerusalem, luxury retail has moved way forward in recent years. 2021 luxury retailers used this as an opportunity to renovate existing concepts and opened doors for new designs of  Dolce and Gabbana, Saint Laurent, Dsquared2 and Moncler concepts at Israeli Kikar Hamedina.