Steimatsky's is Israel's largest chain of book stores. Prices are high, but no higher than other book store in Israel. They generally carry a nice selection of English books, too.
In the past, they used to carry Magic cards, but now only carry Yu-Gi-Oh and Digimon. They also have Ravensberger puzzles, some CDs and DVDs, and assorted knick-knacks.
Silver Stars, Israel's only Euro game importer, has just made a deal with Steimatsky's to sell a few games in various branches of the book chain. The games that will be carried include Drakon, Citadels (Metsudot), Mishak Ha'atsilim (Lucca Citta) & Munchkin. Which branches will carry the games is currently unknown.
Good luck, Silver Stars.
The Dust Forms Words believes that board games will soon be history, in favor of video games. Where have I heard that before?
The Chicago Tribune apparently had an article on Settlers of Catan. I didn't want to register to see it, but you can see a copy on the Geek thread that announced it.