Black Friday is expected to generate R11.3bn for the country’s retailers
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THE Black Friday 2021 bargain bonanza is expected to generate around R11.3 billion rand in additional sales for South African retailers over November according to the latest study by the Bureau of Market Research conducted on behalf of Capital Connect.
The research said the R11.3bn was only the retail impact of Black Friday, an anticipated R8.208bn wholesale impact is expected giving rise to a total retail and wholesale impact of about R19.517bn as South Africans shop up a storm.
The research estimated that general dealers were likely to make the most gains with 55 percent, or R6.2 billion, in share of the value, followed by textiles, clothing, footwear and leather at 24.7 percent (R2.79bn), hardware, paint and glass at 8.6 percent (R972 million) and household furniture, appliances and equipment at 8 percent (R904m).
Presenting the findings of the study, Professor Carel van Aardt, research director of the Bureau of Market Research, said Black Friday 2021 would not be as good as in 2019, but would be better than 2020 due to the fact that 2.164 million people lost their jobs between 2019 and 2020, and 733 000 new jobs were created during 2020 to 2021.
“Although total additional retail spending due to Black Friday will grow during 2021, it will not reach the levels achieved during 2019 – still 36.4 percent lower,” said
Van Aardt said spending would likely be driven by the middle and affluent shoppers buying luxury goods at discounted prices volume, and middle markets buying necessities in bulk. Van Aardt said consumers in the volume, middle and affluent markets are expected to purchase discounted goods as part of their Christmas shopping adding to the spending spree.
“Excellent in-store experiences with respect to customer service, value for money, variety, in-store availability of goods, shopper-tainment, strong brand and friendly staff are critical for good sales,” he said.
Van Aardt said as lockdown levels soften, consumers were moving back to in-store buying. “Even during the harder lockdowns, the biggest e-commerce winners were omni-channel store-based brands,” he said.
Black Friday originates in the US where shoppers use the Friday after Thanksgiving to take advantage of massive discounts. It was introduced in South Africa in 2014 and has become a driver of sales for the festive season.
Connect Group chief executive Steven Heilbron said since South African retailers embraced the Black Friday concept in 2014, there had been sharp rises in retail sales each November, pandemic disruption aside.
“It’s a golden opportunity for retailers to boost their sales and profits. Forward-thinking retailers have stocked up and enhanced their in-store shopping experiences in anticipation of the Black Friday weekend,” said Heibron.
The Bureau forecasts that in-store, hybrid (multi-channel) and omni-channel retail will win around 84 percent of sales, while online-only retailers will capture about 16 percent of Black Friday-related sales over November.
“This Black Friday and Festive Season retail trading period will see a global resurgence in in-store shopping as stores aim to attract lockdown-fatigued consumers with experiential shopping offerings that entertain and educate,” Heibron said. He said the stores that offer the most compelling shopping experiences would be big winners as consumers get out and about while their vaccine immunity was strong and Covid rates were low.
Meanwhile Pick n Pay yesterday launched its so-called Early Black Friday deals in stores and online, and customers could save up to 50 percent on groceries, liquor, household goods, appliances and more.
BUSINESS REPORT ONLINE