Don't get caught out: essential shopping strategies for Black Friday in South Africa

Forget about online shopping, it is online gambling that's  putting a strain on South Africans finances, and if you thinking of splurging this upcoming Black Friday, economists are warning that with an economy in the doldrums it would be wise to hold onto your cash.

With Black Friday falling on 28 November this year and Cyber Monday following on 1 December, experts are warning South Africans to approach the festive shopping period with caution. 

While Black Friday, his year falling on 28 November has grown in popularity, becoming a cultural phenomenon in a relatively short period of time, economic pressures, high debt levels, and the rise of online scams mean shoppers must plan carefully to avoid financial hardship.

Economist Dawie Roodt said that despite the allure of discounts and the surge of online shopping, he expects subdued demand this year. 

“Only a few years ago, we didn’t even know about Black Friday. Now it’s part of our culture, but I suspect we won’t see very strong spending here. People are used to online shopping and already have the gadgets they need. More importantly, the economy is under pressure, and demand is likely to be weak. I do not see people splashing out this festive season.”

Roodt added that although inflation is currently low, wages are not keeping pace with the cost of living. 

“On a per capita basis, South Africans are effectively getting poorer. Weak economic growth, not inflation, is the real issue. Industries like manufacturing are suffering due to poor macroeconomic policies, while essential goods remain a priority for households. 

“At the same time, some people are spending on unnecessary items like online gambling a sign of desperation in certain income groups.”

Economist Ulrich Joubert warned that many South Africans are at risk of over-extending themselves during the festive season.

“If you don’t pay for purchases, whether on a credit card or a store account, interest rates can quickly skyrocket easily to  26% or more. Many people don’t budget properly for their monthly income, and overspending in December, when 13th cheques or bonuses arrive, can create serious financial problems in January when regular salaries resume.”

Joubert explained that the impact of the economy varies across income brackets. Low-income households often spend on essentials like food and transport, with little flexibility for additional purchases. 

Middle-income families, meanwhile, face rising costs for utilities, school fees, and other living expenses, leaving them more vulnerable to overspending. Higher-income households have more financial leeway but must still consider inflation and other cost pressures when budgeting for Black Friday.

“The festive season is a time to be careful,” Joubert added. “Check whether a product is truly necessary, and make sure you understand the long-term cost if you are paying on credit. Be careful with debt because failing to settle on time leads to high interest charges, and the repercussions can affect your budget for the entire year.”

Consumer law experts are also cautioning against using retirement savings or short-term loans to fund festive spending. Fortune Chego, a candidate attorney at Trudie Broekmann Attorneys, warned: “Don’t withdraw from your pension unless it’s a question of literal life or death. Even small withdrawals today can become a major loss due to compound interest.”

Trudie Broekmann noted that consumers should start planning early to take advantage of discounts while avoiding misleading deals. 

“Suppliers may raise prices in the weeks before Black Friday and then advertise a discount that only brings the price back to the original level. Use sites like www.pricecheck.co.za  to verify the real market price,” she explained. 

She added that misleading pricing, or “bait marketing,” is illegal under Section 30 of the Consumer Protection Act, and can be reported to the Consumer Goods and Services Ombud or the National Consumer Commission, with fines of up to 10% of turnover.

Cybercrime remains a major concern during Black Friday and Cyber Monday. Fraudsters create fake websites, clone cards, and exploit online shoppers who rush to grab deals.

Colin Campbell, Director of Marketing and Operations at Finchoice, warned that online security is as important as finding the best bargains. 

He explained several practical steps consumers can take: use virtual cards separate from main accounts, strengthen passwords and use unique ones for every site, verify offers by checking URLs, reviews, and contacting merchants through official channels, and use trusted payment platforms like PayJustNow, which allows interest-free instalment payments and keeps financial information secure.

Campbell added that those considering short-term loans should only use authorised Financial Services Providers and official apps, while monitoring transactions via push notifications or SMS alerts.

Experts emphasise that careful planning is crucial. Broekmann noted that shoppers should prioritise essentials such as festive food, children’s nappies, back-to-school items, bulk groceries, electronics for side hustles, and paying down debt if possible. Consumers should research prices, identify genuine deals, and avoid impulse purchases that could lead to high-interest debt. 

“Check hidden costs such as delivery fees or import duties when shopping online, and don’t let Black Friday or Cyber Monday deals tempt you into spending money you don’t have,” Broekmann added. “Set a budget and stick to it. If you can’t afford it, make a list for next year and save gradually.”

Despite weak economic growth, the popularity of Black Friday shows no signs of waning. However, experts like Roodt and Joubert agree that this year’s festive spending will likely be more cautious. “Consumers need to be aware of the real cost of spending, both in terms of their budget and the interest charges they might incur,” Joubert said. 

“Be realistic about what you can afford, prioritise essential purchases, and ensure your festive season starts on a solid financial footing.”

tracy-lynn.ruiters@inl.co.za

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