South African shoppers may need to temper their expectations for Black Friday discounts this year as market trends reveal a decline in consumer enthusiasm for the annual shopping extravaganza. <\/p>\n\n\n\n
Retailers, meanwhile, are adjusting their strategies by extending promotions throughout November, creating a “Black November” rather than a single-day spending spree.<\/p>\n\n\n\n
Data from Absa Corporate and Investment Banking (CIB) paints a sobering picture. <\/p>\n\n\n\n
In previous years, Black Friday saw double-digit growth in consumer spending and transaction volumes, with significant spikes in 2021 and 2022. <\/p>\n\n\n\n
However, in 2023, this growth slowed to just 4% in spending and 8% in transaction volumes. <\/p>\n\n\n\n
Moreover, same-day spending for Black Friday 2023 declined by 4% in rand value compared to the previous year, and foot traffic in physical stores plummeted by a staggering 80% year-on-year.<\/p>\n\n\n\n
Some of this decline can be linked to timing\u2014Black Friday 2023 occurred before payday for many South Africans. <\/p>\n\n\n\n
However, the data also signals a broader shift in consumer behaviour. <\/p>\n\n\n\n
Online shopping surged by 20% in the first 23 days of November 2023, while in-store spending rose by a modest 8% over the same period. <\/p>\n\n\n\n
This indicates that shoppers are increasingly spreading their spending across the month, opting for deals available throughout November rather than waiting for a single day.<\/p>\n\n\n\n
Christelle Joseph, Senior Coverage Banker for Consumer Goods and Services at Absa CIB, attributes this shift to South Africa\u2019s challenging economic environment. <\/p>\n\n\n\n
\u201cSouth Africa\u2019s economic strain is fundamentally reshaping how, when, and where consumers choose to spend,\u201d she explains. <\/p>\n\n\n\n
Sharp price increases in essentials like food, fuel, and electricity are forcing many consumers to prioritise basic needs over discretionary purchases.<\/p>\n\n\n\n
Joseph also notes that the retail sector is feeling the impact of this shift. <\/p>\n\n\n\n
Traditionally, the fourth quarter has been a critical period for retailers, buoyed by holiday spending.<\/p>\n\n\n\n
However, this year, retailers are unlikely to see the same level of performance due to prolonged economic pressures. <\/p>\n\n\n\n
High interest rates, persistent inflation, unemployment, and low household incomes are squeezing consumers\u2019 wallets and reshaping spending habits.<\/p>\n\n\n\n
Retailers are also facing their own challenges. <\/p>\n\n\n\n
Balancing competitive pricing while navigating rising costs has become increasingly difficult.<\/strong> <\/p>\n\n\n\n The rise of e-commerce giants has further complicated matters, as consumers now expect discounts year-round. <\/p>\n\n\n\n This has led to a phenomenon Joseph describes as “discount fatigue,” where the ubiquity of deals dilutes the urgency traditionally associated with Black Friday. <\/strong><\/p>\n\n\n\n To adapt, many retailers have shifted to offering regular price reductions, making one-day events like Black Friday less critical.<\/p>\n\n\n\n The move towards a “Black November” strategy reflects these changing dynamics. Instead of dramatic, one-day-only discounts, shoppers now encounter more modest deals spread across the month. <\/p>\n\n\n\n For consumers, this shift necessitates a more measured approach to bargain hunting, as the standout deep discounts that once defined Black Friday have become less common.<\/p>\n\n\n\n Ultimately, the data and market trends suggest that both consumers and retailers are recalibrating their approach to Black Friday, driven by economic realities and evolving shopping behaviours. <\/p>\n\n\n\n The era of frenzied, one-day shopping sprees appears to be giving way to a more protracted, deliberate period of promotions, leaving South Africans to navigate a new landscape of deal-hunting.<\/p>\n\n\n\n
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