South African businesses and consumers alike could reap the rewards during November and, possibly, long after, as retailers look to take advantage of increased consumer confidence before the festive season (officially) begins.



Seen as ‘the largest trading weekend on the Retail Calendar’ for some, the knock-on effect of Black Friday and Cyber Monday can be used to create economic movement over a longer period.



Reports online recently forecasted consumer spend of ZAR3 billion ($164.7 million) over the Black Friday weekend, according to First National Bank (FNB), partly due to an increase in consumer purchasing power and the fact that it fell after payday.



Further to this, research commissioned by&nbsp;Capital Connect, a platform that offers financing for retailers, indicated that South Africa’s wholesale, retail and fuel sectors were forecasted to generate more than ZAR88 billion ($4.8 billion) in additional economic value for the economy as a whole during November 2024.



Udhveer Sookraj, Data Integration Specialist at Insight Consulting, emphasizes to FORBES AFRICA that Black Friday is not just a retail event but rather an important stimulus of the economy.



“There is a very widespread impact to the economy in general from this boom. This is as simple as driving the need for the transportation to stores and delivery logistics, to the impact to manufacturing, supply chain and marketing, positively impacting direct participants and indirect participants.



“Black Friday could in fact be seen as one of the most important economic events in the country.”



The knock-on effect of these retail days could, equally, be seen in other sectors of the economy.



“With consumers focusing largely on retail on Black Friday, this puts more focus on the social industry – holidays, restaurants and entertainment – in the festive season as consumers feel less pressured with the traditional festive shopping, moving more towards social experience,” Sookraj explains.



“In other instances, there is an increased focus in preparing for the new year – back to school, a new car – thus in turn stimulating these industries. This pattern of economic activity results in increased consumer confidence, and creates the important knock-on effect that results in active economy well&nbsp;into the new year.”



Steven Heilbron, CEO of Capital Connect, explained, in a statement in October, that the positive outlook for&nbsp;Black&nbsp;Friday&nbsp;2024&nbsp;indicates that “the tide is turning for South African retailers after a long period of economic and retail stagnation”.



In a thought leadership piece on the frenzied festive shopping season, Ulana van Biljon, Chief Operating Officer of Emira Property Fund, states that consumers are more likely to spend during seasonal shopping peaks when they perceive their financial situation as stable or improving.



Following the announcement from Reserve Bank Governor, Lesetja Kganyago of a rate cut of 25 basis points, with the repo rate falling from 8% to 7.75%, consumers may feel more confident about their spending power.



However, van Biljon did caution that, for the 2024 festive season overall, consumers would remain cautious and focus, primarily, on essentials.



Sookraj believes that Black Friday has truly been adopted as a mainstay event by South Africans.



“It’s an event that is so focal to South Africans that budgeting and saving for this event happens months in advance, firmly underlining the joy this event brings,” he says.



“South Africa’s rise in the technology space has also seen [an] incredible increase in online sales participation. For a larger number of retailers, Black Friday and Cyber Monday have become the highest trading days in the retail calendar, with some retailers doing over half the annual turnover in that single weekend than in the entire year.”

Tag: Chrismas Shopping

FORBES AFRICA SOCIAL MEDIA

Stimulating Consumer Spending In South Africa: Could ‘Black Friday’ Become The Gift That Keeps On Giving?