Black Friday will mean that South Africans will spend billions of rands, but experts believe that these purchases will not include all kinds of luxuries this year, but rather necessities such as food, clothes and household products. Black Friday is on November 24 this year.
“After two years of weak economic growth, this year’s Black Friday will not reach the heights of 2021,” says Steven Heilbron, CEO of Capital Connect.
“The post-pandemic trend will rather continue, which means that consumers will look for bargains.”
Capital Connect recently commissioned research from the Bureau of Market Research (BMR) on the upcoming Black Friday period and what it is expected to mean for the economy.
According to this research, this year’s turnover after Black Friday will total R26.6 billion. Although this is almost half the amount generated in 2021, it is significantly more than the R19 billion that sales generated last year.
“The cash-strapped consumers will focus on bargains for essentials rather than spoiling themselves with luxuries,” says Heilbron.
The products that are expected to fly off the shelves in particular are necessities such as chicken, fruit, vegetables, milk, sugar, cooking oil and toilet paper.
Cheaper clothes not produced by well-known brands will also be popular, especially with children and women.
Small household appliances such as two-plate stoves and kettles will also be something consumers will be keen to purchase, with larger appliances likely to take a back seat.
“The International Monetary Fund’s (IMF) revised economic outlook for 2023 indicates that South Africa’s gross domestic product (GDP) will grow by 0.9%. This indicates slight improvements in market conditions for retailers,” says Heilbron.
The research indicates that retailers with a strong online presence will also benefit greatly from Black Friday.
“Instead of just visiting stores for Black Friday bargains, consumers are increasingly buying goods online,” he says.
“Online retail channels passed the R50 billion mark last year and are expected to grow to around 15% of total retail value by 2030.”
In addition to the boost traders can expect, the Black Friday season will also create around 150,000 jobs in the South African economy. However, most of these opportunities are only temporary.