South African retailers are expected to generate around R17.3 billion in additional sales during the Black Friday promotion. This represents approximately 6.7% growth over the 2021 Black Friday period. This figure is less than he is projected to be R5.4 billion. It would have been if South Africa had not experienced so many load sheddings, which he has remained at a high level through 2022.
This is according to new research conducted by the Bureau of Market Research (BMR) on behalf of Capital Connect, a fintech company that provides opportunity capital to retailers in South Africa.
The study also found that the motor trade is expected to generate an additional R5.9 billion in sales during the busy promotional period.
“With the economy stagnant, unemployment rampant and inflation rising, this Black Friday season is shopping for survival,” said Professor Carel van Aardt, research director at BMR. “With the economic outlook bleak, consumers are expected to stock up on essentials rather than buying luxuries for themselves or early Christmas gifts for their loved ones. “
“Apart from bulk groceries, this year’s hits are likely to include gadgets and gadgets that help consumers weather the load shedding crisis. In a weaker environment, we expect consumers to switch from expensive brands and products to white-label brands and more affordable alternatives.”
Load shedding disrupts normal business
Excessive load reductions this year have exacerbated South Africa’s longstanding problems of low growth and rising unemployment. Load shedding slows GDP growth and output, and increases unemployment. It also disrupts business operations and supply chains and keeps people away from stores.
All of these factors could make Black Friday relatively weak, with growth struggling to keep up with inflation. The silver lining is the amount of demand for which alternative power solutions are being created by load shedding. Year-over-year, consumer interest in inverters increased by 56%, generators by 29%, uninterruptible power supplies by 29%, and solar systems by 34%.
The retail subsector that saw the most additional revenue during Black Friday was general dealers (R7.7 billion). Clothing, textile, footwear and leather retailers (R5.5 billion). Retailers of furniture, appliances and equipment (R1.6 billion). These figures have lost R577 million to ordinary dealers alone and could be significantly higher without road shedding.
In the automotive industry, the winners are accessories (R1.2 billion), fuel (R2.3 billion), used cars (R1.5 billion) and new cars (R516 million). Sales of new and used cars are projected to cost him R1.2 billion less than without load shedding, leaving fuel retailers to miss out on potential revenues of more than R870 million for him. .
Following recent trends, Black Friday promotions may run through most of November to early December. Consumers have already started looking for potential deals as early as October 10th. During this period, bricks-and-mortar and hybrid retail channels will account for approximately 81% of sales, while online-only channels will account for approximately 19%.
Steven Heilbron, CEO of Capital Connect, says innovative and agile retailers are finding ways to grow and boost sales even in challenging years. They are preparing for Black Friday by improving the in-store shopping experience, saving by buying in bulk with discounted rates, diversifying their merchandise, and creating revenue streams such as e-commerce to thrive. I came.
“The key to accessing these opportunities is affordable, hassle-free opportunity capital with no bureaucracy,” says Heilbron. “With Capital Connect, a retailer applies for business funding from his Connected App, selects the desired loan amount up to R5 million, selects the repayment period, and the funds are in his bank account within 24 hours. will be transferred to the