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The Black Friday 2018 queue outside Game in Century City, Cape Town .. Photo Jay Caboz
- Rand Merchant Bank predicts that, for the first time, Black Friday sales may overshadow the usual spike of the holiday season in South Africa.
- Some retailers are offering Black Friday specials for a month.
- Additionally, with consumers suffering financial stress amid the pandemic, adequate discounts can be expected.
- For more articles, go to www.BusinessInsider.co.za
In 2019, South Africans squandered R6 billion on Black Friday deals, beating retailers’ expectations.
This year, despite the economic damage caused by the pandemic, it could be a retail event even bigger than the holiday season, for the first time.
“In the past, with the exception of one or two subsectors, we’ve seen a relatively even split between Black Friday and holiday sales,” says Debbie Law, RMB Retail Director. “But it is more than likely that it will be different this year. Retailers have been attracting consumers since the beginning of the month trying to capture as much of the consumer’s wallet as possible. “
Some retailers, including Makro and Game, have announced that they will be offering month-long Black Friday specials, rather than a single-day bonanza on November 27.
READ | The game is 20-30% off pre-Black Friday tech deals, if you can find stocks
Law adds that consumers have been actively encouraged, through evocative marketing tactics, to complete their holiday shopping during extended Black Friday. This coincides with health and safety fears around social gatherings, particularly in closed environments like shopping malls.
“Online shopping is a space that consumers are becoming familiar with and this familiarity, combined with people who do not want to venture into crowds, will contribute significantly to the role that online shopping will play on Black Friday this year.” Law explains. .
Law added that changes in consumer behavior since the lockdown began will also have an impact on Black Friday. People have become more conscious of value for money and their definitions of what they see as luxury items.
“They are also evaluating what is needed and what is essential. This puts retailers poised to offer deep discounts for valuable items at the head of the queue.
“We are seeing a small exception in technology devices that can be used for work from home, school from home, and home entertainment. Smartphones and laptops seem to have been quite popular and are considered worth spending a little more on them, ”Law said.
While other retail categories have suffered amid the shutdown, sales of office equipment and stationery soared as South Africans, including school children, were forced to work from home.
Market research organization Gfk reports that sales of these products experienced 83% year-on-year growth between January and August in South Africa.
READ | Increased Sales of Laptops, Stationery, and Toasters as South Africans Establish Home Offices
“After a grueling year that has hit many South Africans in the pocket, we expect to see demand from two types of consumers on Black Friday: the rebooted spender, who is looking for real bargains after months of holding back, and the income spender, looking for deals that allow them to switch to premium products, ”says Nicolet Pienaar, head of market knowledge at GfK South Africa.
Compiled by Luke Daniel
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