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With war keeping customers and workers away, retailers struggle to keep doors open

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25.03.2026

For almost two decades, Erez Davidov’s Bezalel Market stall has been a go-to spot for budget-friendly swimwear, catering to customers of all sizes and ages.

The stall at the open-air pedestrian market has a prime spot in the heart of Tel Aviv, nestled off King George Street near trendy Sheinkin Street and a stone’s throw away from the Carmel food market.

The period just before the Passover holiday, which begins next week, normally marks the start of Davidov’s busy season, with the warming weather bringing shoppers looking to renew their beachwear for the summer, he said.

During a recent visit to the store, with the war against Iran more than three weeks old, Davidov, 36, was sitting on an old black office chair waiting for shoppers, who were nowhere to be seen.

It’s not just that consumers are avoiding shopping with missiles flying overhead. It’s also that they have nothing to shop for, with beaches closed and international travel shut down.

“Business has all but disappeared,” said Davidov. “Many Israelis, who booked a vacation or were hoping to travel during Passover, had their plans canceled because of the war.”

“This also hurts my business because no one needs to or wants to get a new swimsuit for the season as they are not going away and pools are closed,” he added.

Though initially closed by emergency guidelines at the start of the war, Davidov’s and other nonessential businesses have since been allowed to open up. But many of them are barely functioning, lacking both customers and workers. The hospitality and the food and beverage industries are particularly hard-hit.

Roughly one in four businesses is closed, partially closed, or working at minimum capacity, according to a March survey by the Central Bureau of Statistics sampling 1,779 businesses across Israel. Nearly half of all hotels, event halls and restaurants reported being shut down or barely functioning, the survey found.

Among small businesses with 5 to 10 employees, 31% reported that they were shut down or barely working, thanks to staffing shortages and school closures. Four percent of large firms said the same.

Almost half of the business owners participating in the survey cited the closure of educational institutions as the main economic obstacle. Schools have been closed in most places for the duration of the war and are now set to remain closed into the second week of April for Passover break, leaving parents trying to juggle work and childcare.

Least affected by the war have been non-retail industries that can easily shift to remote work, such as tech and financial firms, the survey showed.

In many places, including Tel Aviv, which........

© The Times of Israel