Returning to normal: October was, of course, a difficult month for malls, but only now, a month and a half after the outbreak of the war, is the trend changing a bit.
In November, and especially in the past two weeks, there was a recovery in malls following the November holiday sales. Shopping malls are reporting many purchases following Black Friday deals, now also known as Blue Friday. However, mall executives note that this year's November holidays will represent a significant decline from last year.
According to Shva data, there has been a decline in purchases by Israelis since the beginning of the war, which varies according to weeks: in the first week of the war there was a decline of 24% compared to the average regular week, and in the second week the decline was 27.7%. In the third week there was a slight recovery and the decline was 20.5%, in the fourth week it was 17.4% and in the fifth week it was 10.5%. In the sixth week of the war, however, the decline was 20.8%.
Black Friday // Black Friday, Photo: None
According to Omer Ogolnik, CEO of Ofer Malls, "Black Friday is traditionally remembered with the pictures of the long lines in the US on the last Friday of November. In practice, Black Friday is celebrated online and offline for almost half of November, in one form or another. This year, as a result of the war, this holiday does not exist, so everyone is joining this thing - the malls, chains and consumers, who are acting out of a real opportunity to strengthen local businesses due to the severe damage they have suffered.
"In the last two weeks we have seen an amazing recovery. In the past week, the pace of visitors and sales has been good. It should be said that there are industries that are excluded from this celebration: in fashion less find themselves, but this is mainly due to the fact that there are no events and celebrations."
"Very challenging time"
Alex Kaplan, Dizengoff Center's marketing manager, also talks about the influence of the period. "We are in a very challenging period, in several ways. On the subject of commerce, the tools we can use from the world of commerce and advertising are limited today, and rightly so. They have to adapt themselves to the national mood. We are concerned about the economic front, which is important in this war.
Dizengoff Center, Photo: Moshe Shai
"In the past two weeks, we have seen a recovery in trade, and mainly improved conversion rates of people coming to shopping centers and purchasing. It's a combination of the deep operations of the networks and the improvement in the national mood. I can assume that by next week, with the return of the abductees, the mood of the Israelis will improve.
"The restaurant sector has recovered more, and the shopping sector is now recovering. We hope that the combination of the right deals and the improvement in mood will also lead to a lot of shopping and strengthening the economy."
Hila Noy, marketing manager of Big Shopping Centers, also talks about the need to strengthen businesses: "In order to strengthen the Israeli economy, we decided to put our hand in our pocket and launched a big sale campaign that will last until Saturday night. All the stores go outside with tables and promotions. At the same time, we distribute stickers to vehicles calling for the release of the abductees and 'Am Yisrael Chai.' Flight attendants also hand out hot drinks.
"As for the deals, all the stores offer a 40-80% discount. These are very attractive deals, which is rare at the beginning of winter. We see very beautiful movement. People need to buy because the weather has changed."
Sales will actually go up
Danielle Alfi, VP Marketing and Commercial Meex Real Estate Complexes of the Semi-Free Group, adds: "Compared to October, we are experiencing a gradual recovery. Our team is working hard to return to a normal and good routine of activity, for the benefit of our tenants and customers. The month is not over yet, and we are confident that we will continue to see an upward trend and that we will end with optimistic numbers."
Although the war is far from over, some malls say there could even be an increase in sales.
Nitzan Ariel, CEO of Ir Yamim Mall, said: "Due to the current situation and the planned ceasefire in the fighting, we estimate that if quiet is maintained, optimism will directly affect the number of visitors and purchases at the mall.
The first store in the Golden Mall, photo: Tamir Rogovsky
"It is important to remember that unlike in the past, most Israelis are in Israel and prefer to purchase here, and therefore, the support for the local economy and the focus on blue-and-white products, alongside the chains' in-depth promotions, will, in our opinion, lead to an increase in the number of buyers and the volume of purchases ahead of Black Friday."
Dotan Shalom, CEO of the Northern Gate Mall, added, "The complex reality created this year due to the security situation and against the background of the temporary ceasefire, which we hope will be maintained in favor of the return of the hostages, creates a sense of optimism ahead of the approaching Black Friday. The various networks initiate extensive and significant in-depth operations. This year we are offering a special benefit - a free menorah for every purchaser in the mall for 199 NIS. There is no doubt that the national atmosphere and the tendency to support the local economy, together with the security calm that we hope and will maintain, will directly affect the increase in the number of visitors and the volume of purchases at the mall."
According to Uri Smith, CEO of TLV Mall: "We feel the desire of consumers to return to routine, spend time in the mall, purchase fashion items, cosmetics, electrical appliances, and visit cafes and restaurants. Already on Tuesday we saw a significant increase in the number of visitors to the mall and the large number of participants in the sale out of the total gifts. For every purchase over NIS 599 in the mall's stores, you can receive a gift from the variety of gifts we offer.
Busy shopping center, photo: Meir Partosh
We are glad to see throughout the mall many visitors loaded with bags. We are pleased to see a double-digit percentage increase in visitors compared to Black Friday in 2023. We estimate that redemptions over the coming weekend will return to normal following the variety of promotions."
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