Research and Markets: Israel Retail Report Q3 2010 - Vehicle Sales Are Forecast To Rise By 59.5%, From US$5.60bn in 2010 to US$8.93bn By 2014

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/c6d397/israel_retail_repo) has announced the addition of the "Israel Retail Report Q3 2010" report to their offering.

Business Monitor International's Israel Retail Report provides industry professionals and strategists, corporate analysts, retail associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Israel's retail industry.

BMI's Q310 Israel Retail Report forecasts that the country's retail sales will grow from ILS132.06bn (US$36.82bn) in 2010 to ILS151.37bn (US$42.20bn) by 2014. Key factors behind this growth are Israel's underlying economic growth, sophisticated consumption habits, its growing population and rising disposable incomes.

Israel's nominal GDP is predicted to be US$219.4bn in 2010. GDP growth is forecast to accelerate to 3.4% in 2010 from 0.7% in 2009 as the economy slowly begins to recover. Average annual GDP growth of 2.9% is predicted by BMI between 2010 and 2014. With the population increasing from 7.6mn in 2010 to 8.1mn over the forecast period, GDP per capita is predicted to rise to US$35,237 by 2014.

The Jewish tradition of offering gifts to relatives and friends at festivals during the year - Hanukah in December, Passover in March/April and Rosh Hashanah (Jewish New Year) in September - generates healthy demand for products such as consumer electronics, fashion goods and accessories, jewellery and other quality goods. Also, with about 30% of the Israeli population under 14, the youth market presents great potential for toy and game retailers. In 2005, 63.3% of the Israeli population was described by the UN as economically active, with 35.5% in the 20-44 age range important for retail sales. In 2010, 64.3% of the population is expected to be economically active, but the proportion of those in the 20-44 age band is forecast to fall slightly to 35.3%.

A very high level of urbanisation is also contributing to retail growth. In 2005, 91.7% of the population was classified by the UN as urban, and this is forecast to increase to 92.0% by 2015.

In terms of retail sub-sectors, Central Bureau of Statistics (CBS) data indicate that in 2006, 3.9% of the Israeli household budget was spent on furniture and household equipment. 3.4% went on clothing and footwear, 1.3% on cosmetics and 0.4% on jewellery and watches.

According to BMI data, retail sub-sectors that are likely to show strong growth over the forecast period include consumer electronics, with sales predicted to rise by 22.5%, from US$2.84bn in 2010 to US$3.48bn by 2014. The over the counter (OTC) pharmaceuticals sector is forecast to grow from US$0.38bn in 2010 to US$0.48bn by the end of the forecast period, a rise of more than 25%. Food and drink sales are expected to rise from US$16.83bn in 2010 to US$19.41bn by 2014, an increase of over 15%. Vehicle sales are forecast to rise by 59.5%, from US$5.60bn in 2010 to US$8.93bn by 2014.

Retail sales for our set of Middle East and Africa (MEA) countries in 2010 are predicted to amount to US$183.52bn, based on the varying national definitions. Total consumer spending for the region based on BMIs macroeconomic database is forecast to reach US$673.32bn. For 2010, BMI predicts that 2 South Africa and Israel will together account for an estimated 56.8% of regional retail sales, and their combined share is expected to rise to 57.2% by 2014. For Israel, its estimated 2010 market share of 20.1% is expected to decline to 17.3% by 2014.

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