Savvy South African shoppers kick off Black Friday deals early with new payment methods

In a significant shift from traditional shopping patterns, South African consumers are embracing Black Friday earlier than ever.

What was once a singular shopping day in late November has evolved into a substantial month-long event, with bargain hunters beginning their search for deals as early as October.

This change indicates a growing trend of consumers planning ahead, particularly for end-of-year expenses and back-to-school purchases.

Major retailers are expected to respond to this new consumer behaviour by launching larger promotions ahead of the notorious shopping weekend.

While this strategy may redistribute some spending from the festive month of December, it reflects a proactive approach by shoppers seeking to manage their budgets more effectively.

Furthermore, the future of shopping in South Africa is becoming increasingly digital. Predictions suggest that ecommerce will see exponential growth by the end of 2025, with digital payment options playing a pivotal role in Black Friday transactions.

Currently, only one in five South Africans possess a credit card, but alternatives like Buy Now Pay Later (BNPL) services are transforming the shopping landscape.

Through platforms like PayJustNow, there was an astounding 94% increase in retail transaction value from November 2022 to November 2023.

Anticipation for an even more remarkable 140% increase is projected for the following year.

Consumers are valuing the convenience of BNPL as it allows them to opt for manageable payments on larger purchases, without relying on their savings.

This trend is accompanied by a noticeable shift towards quality over quantity in purchases, reflecting an increasing awareness of overconsumption.

Notably, high-end second-hand stores offering pre-loved designer fashion were among last year’s standout performers in the BNPL landscape.

As we look forward, experts predict that electronics sales will also see a significant rise, boosted by an influx of affordable technology from Chinese manufacturers.

While the growth of ecommerce is undeniable, traditional brick-and-mortar retail remains a force to be reckoned with.

Last year, over half of PayJustNow’s Black Friday transactions occurred in physical stores, with multi-category emporiums, selling everything from homeware to appliances, drawing crowds.

Nonetheless, the majority of decision-making still takes place online.

In November, PayJustNow's dedicated deals page garnered close to 50 million views, resulting in an impressive over 100% increase in unique clicks to online stores.

Interestingly, early consumer interest was evident, with a staggering 85% rise in site visits between September and October.

Discounts are a crucial consideration for shoppers, and the most sought-after deals typically fall within the 25–30% range.

While some partners have previously offered discounts as steep as 60%, analysts expect a return to aggressive promotions this year, enticing consumers to seize the opportunity.

BUSINESS REPORT