Savvy South African Shoppers Take Strategic Approach to Black Friday 2023

A marked transformation has been observed in the South African consumers' buying patterns during Black Friday 2023, facilitated by online payment platforms like Payfast that empower users to shop more strategically. According to Brendon Williamson, Managing Director at Payfast, shoppers are demonstrating increased savvy in navigating the flurry of Black Friday deals, using technology to track price changes and plan their purchases meticulously.

The approach adopted by these consumers isn't impulsive but instead entails a deliberate strategy where they scout for desired products and eye price drops well ahead of the big day. This trend suggests a paradigm shift from the traditional frenzy of Black Friday shopping to a more calculated, informed consumer behavior.

Williamson's insights align with an apparent prioritization for value in spending, propelled by the economic pressure resulting from high inflation rates and the escalating cost of living. As a consequence, the focus has been tilted towards essentials and smaller indulgences over more luxurious or non-essential items. This has inevitably led to a decrease in the average transaction value on Black Friday itself through Payfast, from R1,689 in 2022 to R1,364 in 2023, underscoring more prudent spending habits.

Retail sectors that resonated the most with consumers during this period included those dealing in everyday items. Family clothing, discount, and general merchandise stores, along with convenience food outlets, have seemingly reaped the benefits of this shift, evidencing the consumer base's aspiration to reconcile prudential spending with the need for day-to-day goods.

One standout trend highlighted by Payfast's findings is the significant increase in grocery and essentials sales at online retail giant Takealot, which experienced a 65% boost in its "ALOT for Less" bulk sales by units when compared to the previous year.

Furthermore, although spread-out deals across November create an extended shopping context, Payfast recorded a spike in online shopping on November 24, 2023, signaling that many consumers still anticipate the most substantial discounts on the official Black Friday. The rush of transactions peaked between 09:00 and 10:00 AM, with some enthusiasts staying up past midnight to capitalize on limited-stock deals.

Additional technological trends noted by Payfast spotlight the sharp rise in the use of QR code payments and "Scan to Pay" solutions, which offer a quicker and more streamlined checkout experience for online purchasers. Innovations like these support a frictionless shopping journey, indicating a broader consumer appetite for efficiency and convenience.

In light of these evolving consumer behaviors, Williamson predicts that merchants may consider stretching Black Friday sales periods to encompass the festive season to cater to a wider audience and effectively manage inventory levels beyond the event.

With South African Black Friday shoppers becoming more informed and acting more tactically, it's clear that the day dedicated to deep discounts has evolved into a meticulous affair, as consumers astutely navigate their way through promotions to maximize value amidst challenging economic conditions.