South Africans to spend billions on Black Friday

IT is estimated that about R88 billion will be pumped into the South African economy by consumers, directly and indirectly, this Black Friday, on November 29, through the wholesale, retail and fuel sectors.

This is according to research conducted by the Bureau of Market Research on behalf of Fintech Capital Connect. The research indicates that retailers in South Africa will generate R22 billion in additional direct revenues due to Black Friday sales this year and will generate R28 billion in indirect economic impact.

In this same period, the wholesale sector will gain additional sales of R32.1 billion while an additional R6.2 billion in fuel sales will be generated. “The positive outlook for Black Friday 2024 indicates that the tide is turning for South African retailers after a long period of economic and retail stagnation,” said Capital Connect CEO Steven Heilbron.

Also Read: 5 tips on how to spend smart and safely this Black Friday

The study also indicated that consumer interest in Black Friday looks to be higher in 2024 than any of the past three years. The data shows that total retail sales are forecasted to be 19% higher in November and 48% higher in December than they were, on average, for the first 10 months of the year.

“Among the factors that have helped to improve the economic outlook include vastly reduced load-shedding, the introduction of the two-pot retirement system, an interest rate cut and lower inflation. Innovative retailers with the right product mix and promotions will benefit from the resulting rise in consumer confidence,” said Heilbron.

Amid the excitement and anticipation of Black Friday sales, caution has also been urged. Frugal-living expert and 1 Family 1 Stockpile founder Ncumisa Fandesi-Ndelu said, “Before you go out and buy in the Black Friday sales, stop and think if you really need the item or if you have any use for it. Be mindful before you complete your purchases. Double-check if the item is really on sale and what its original price was. Remember that Christmas is around the corner and that schools will be opening in January.”

The same was urged by Dr Farai Nyika, an academic in MANCOSA’s Department of Economics, who called on shoppers to take a step back and question whether the items they want are truly discounted and are necessary. He said, “Many retailers sell an item for, say, R1 400 with a sign saying the price has been reduced by 70%, so the original price was R2 000. However, if the consumer were to track the price of the same item throughout the year, they would find that the original price of the item in June or July was R1 400. Statistics show that retailers often inflate the prices of products in the months leading up to Black Friday to give consumers a false sense of savings,” said Dr Nyika.

Fandesi-Ndelu also warned online shoppers about scams that are already running with opportunists looking to take advantage of shoppers caught up in the frenzy. “Be careful to check during the rush. Triple-check everything, especially the link to the website that you are shopping on – there are plenty of reputable ones out there, but there are also fake ones. Be wary of giving your money and banking details to strangers; it is happening a lot on social media. If it looks too good to be true, then it is,” said Fandesi-Ndelu.

Two major beneficiaries of Black Friday will be the wholesale sector as a major supplier to retailers, as well as fuel sales due to the heightened level of deliveries of goods to retailers and consumers. Total Black Friday direct retail gains will amount to R22.08 billion, with most gains coming from consumers buying necessities rather than luxuries.

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