Grocery shopping accounted for 27 percent of all spending during Black Friday weekend in 2023, according to Standard Bank. Picture: Tracey Adams / IOL News
Ahead of Black Friday on November 29, data from Standard Bank and Liberty Two Degrees (L2D) showed that 2023 saw the highest spending on Black Friday weekend and record foot traffic.
Standard Bank data showed that both physical and online purchases soared with online shopping increasing by 17% and has shown 30% growth since 2021.
While Black Friday was once dominated by electronics and appliances, there has been a shift towards other purchases, according to Standard Bank.
Grocery retailers, clothing, and department stores were leading sales with grocery shopping accounting for 27% of all spending during the weekend in 2023, up from 26% in 2022.
“The average transaction in electronics and department stores is still higher than in grocery stores. However, more people are shopping for groceries on Black Friday than for electronics other discretionary items,” Tumelo Ramugondo, Head of Credit, Standard Bank said.
Another trend that is on the rise is consumer spending on experiences where spending on holiday packages and entertainment has increased.
Standard Bank has showed that purchases by customers over R3,500 have mainly been in travel and tour operators, airlines, and car rentals. Home furnishing, wholesale clubs, and cruise lines follow closely, with average transactions exceeding R2,500.
For categories like groceries, clothing, and department stores, there has been high transaction volumes.
“In contrast, holiday and entertainment categories have lower volumes but higher spending, suggesting that consumers who can afford such save throughout the year for Black Friday deals on their dream vacations,” Ramugondo said.
“Some shoppers booked holiday packages for more than R60,000, with some transactions exceeding R80,000 through tour operators.”
Despite Black Friday's growing popularity, foot traffic at many L2D malls are still higher in December in comparison to November.
Jonathan Sinden, COO, L2D said: “Customer spending reflects the same trend. In 2023, December saw a strong rebound, reaching its highest level in five years and surpassing pre-pandemic 2019 levels.”
Sinden attributes this to consumers making family experiences a priority over material goods, driven by financial pressures like high interest rates, inflation, and unemployment.
Another factor is the popularity of festive activities in December which also boosts spending.
These insights show Black Friday’s growing significance in South Africa and the record numbers in 2023 marks it as a major retail event.
Thomas Woods, Market Intelligence Lead, NIQ in South Africa said that Black Friday’s popularity in South Africa started with the growth of online retail events, similar to Prime Day in America.
These events were designed to promote online shopping and encourage consumers to embrace buying on their computers - something we take for granted today.
“By around 2014, major South African retailers started incorporating Black Friday into in-store promotions, establishing it as an annual shopping event,” Woods said.
“Black Friday really took off in 2018, and by 2020, it shifted to 'Black November' as retailers spread discounts throughout the month to manage crowds during Covid-19,” Sinden said.
“At the same time, shopping experiences became the main focus, with spending trends moving away from hectic mall rushes and bulk buying on a single day, towards safer, more interactive experiences.“
Sinden said that while many SA retailers now run specials all weekend, Friday remains the top shopping day for consumers.
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