The surprising category now leading Black Friday spending in SA
South Africa has imported a slew of shopping days from the US.
Image: Unsplash
First it was Black Friday, then Cyber Monday. Adding to the list of shopping spree days taking off in the US now is Green Wednesday.
South Africans could be forgiven for missing this day – the day before the US Thanksgiving – as it hasn’t been imported here. Yet.
The cannabis industry’s sales spike the day before Thanksgiving when where cannabis dispensaries run heavy promotions on the eve of the day of commemoration there.
In 2021, Green Wednesday was one of the top five days for cannabis sales nationwide with the industry reporting $98.2 million in sales, third behind Black Friday ($99 million) and April 20 ($111.8 million), according to Axios.
At this morning’s exchange rate of R17.16, that amounts to R1.69 billion, R1,7 billion, and R2 billion respectively.
April 20 – 4/20 – when it isn’t Easter, is widely recognised as a pseudo-holiday in marijuana culture. In states where cannabis is legal, dispensaries and head shops often offer special promotions and discounts. It is a date for both celebration and advocacy for the legalisation movement.
In South Africa, adults may legally use, possess, and cultivate cannabis in private for personal consumption.
The laws criminalising private use and cultivation by adults were struck down by the courts (after a landmark 2018 ruling by the Constitutional Court of South Africa).
A new law – the Cannabis for Private Purposes Act, 2024 – was signed into law in May 2024.
And then we have Black Friday.
Shopping days South Africa has imported from the US.
Image: ChatGPT
Research indicates that South Africans spend as much as R150 billion on the day. However, it does seem to have morphed into Black November.
South Africa’s first formal Black Friday Index, conducted by Ecentric Payment Solutions and World Wide Worx, confirms just how massive the spending frenzy has become.
Total transactions via Ecentric surged 30.4% over the Black Friday weekend last year.
In-store revenue more than doubled from 5.3% to 11.1% of total holiday sales.
Takealot is credited by Standard Bank as having introduced Black Friday to South Africa in 2012 before it took off nationally two years later.
“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,” said Jonathan Sinden, COO of Liberty Two Degrees (L2D).
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, said Sinden.
As L2D saw record foot traffic in 2023, Standard Bank’s transactional data also reveals that 2023 saw the highest spending on Black Friday weekend, with both physical and online purchases soaring.
Online shopping increased by 17% and has grown by over 30% since 2021.
Statistics South Africa points to the share of wallet that Black Friday accounts for.
Image: Statistics South Africa
While Black Friday was once dominated by electronics and appliances, Standard Bank data shows a shift toward grocery retailers, clothing, and department stores leading sales.
In fact, grocery shopping accounted 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,” explained Tumelo Ramugondo, head of credit at Standard Bank.
In addition, the bank has seen rising consumer spending on experiences. Shoppers are increasingly spending on holiday packages and entertainment.
Standard Bank customers’ purchases over R3,500 have primarily 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.
“In categories like groceries, clothing, and department stores, we see 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,” added Ramugondo.
Some shoppers booked holiday packages more than R60,000 with some transactions exceeding R80,000 through tour operators.
Last year, the National Consumer Commission NCC identified about 40 suppliers that seem to have either disappeared or cannot be traced at their addresses listed on the sales records or websites provided to consumers.
“The modus operandi observed is that these suppliers accept the orders, take consumers’ money and never deliver the goods or services as expected,” the agency said.
At the same time, the National Financial Ombud has warned consumers of credit card fraud, fake offers for discounted airline tickets, and the usual overspending on credit.
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