Black Friday is the nirvana of shopping addicts, and consumers spend a lot of money on bargains. It’s a clear pleasure for retailers who want to make a loud noise after the tragic years of the Covid-19 fallout. It remains to be seen if underfunded consumers can afford retail therapy. Key pioneers for consumer economic health, such as Price, Woolworths and Fosquini, are turning points for a very tough year on Black Friday, helping to ease numerous restrictions on trade, travel and leisure. Hope to convince shoppers to open their wallets. – Derek Albert
SA retailers support themselves at the long-awaited Black Friday annual shopping event, whether or not they are preparing to sell bumpers.
Many people have already started selling “mini” from the beginning of November for the big day of this Friday.
Some of these discounted deals will be offered online as part of Cyber Monday.
Read also: Black Friday stole Christmas from SA retailers
For shoppers, this is the time to get great deals, and many consumers spend more on travel and entertainment.
FNB Card CEO Chris Labuschagne says consumers were booking flights and vacations for the upcoming holiday season.
He says spending on digital and technology, groceries, and home improvement products has been consistently high since the blockade began.
“We expect this to continue until Black Friday, as restrictions continue to prevent the pandemic from spreading.”
Spending after a hard lockdown on travel and entertainment is increasing, but it is unlikely to reach the levels seen on previous Black Friday.
However, the retail sector suffered the most as a result of the Covid-19 and blockade. According to the June 2020 MSCISA biennial report, net income growth declined, with retail being the most affected.
GLA + 100000m Super Regional Mall2 Net operating income decreased by 23.7% compared to the previous 6 months.
According to Statistics South Africa last week, retail sales fell 2.7% year-on-year in September, from a revised 4.1% reduction in August.
This was the sixth straight month of decline in retail activity. However, on a seasonally adjusted monthly basis, retail sales increased 1.1%.
Expect a muted Black Friday event
Retailers predict that there will be no in-store night queues to get the most out of the bargains, as the Covid-19 pandemic remains a factor.
Among other Covid 19 protocols, SA retailers are expected to limit the number of shoppers in the store, says Nashil Shotoki, Retail State Asset Manager at Redefine Properties.
He explains that some retailers are expanding their promotions to counter this.
“We expect November to be black in November or December as retailers are trying to win available lands and cents.”
Promoting a safe environment for shoppers differentiates retailers from shopping centers, and these perceptions can promote both scaffolding and spending, says Shotoki.
He says retailers have done a good job of getting customers back into the store safely. This has helped retail footprint and sales recover more than expected.
Since its reopening, convenience stores have outperformed large shopping centers, he says.
“Customers find Covid-19 safer in outdoor and outdoor malls compared to closed shopping environments.”
According to Chotoki, retailers are less likely to carry out discount promotions this year compared to 2019. He says no reduction in margins after a series of pandemic-related blockades is allowed.
“SA retailers admit that it’s likely to be a modest case, but consumers are confident in their spending. Historically, low interest rates have paid and hired for retail sales. We have partially mitigated the effects of the decline, “said Shotoki.
Black Friday will increase shopper activity, but will history repeat itself?
Lightstone data has reviewed Black Friday traffic patterns over the last two years to predict what will happen this Friday.
Data show that in 2019, overall shopping activity increased by 35% compared to regular Fridays. A similar pattern was apparent in 2018 between Black Friday and the usual end of the month, says Linda Reed of Lightstone.
“In 2019, a combination of Black Friday behavior and end-of-month shopping behavior, activity became even more active.”
For the past two years, shopping destinations have been busy two days before Black Friday compared to regular weekdays, Reed said.
“It would be interesting to compare the activity of the entire month with the activity of the previous year, as many SA retailers will offer a” Black History Month “discount in 2020. “
In 2019, the number of Hirsch stores doubled from regular Fridays. The Makro store recorded a 65% increase (after correcting the increased activity at the end of the month).
Small shopping centers recorded 10%, while large malls saw 35% jumps.
|the mall||2019 Black Friday ranking order||Normal Friday month-end ranking||Friday additional activities|
|Gateway Theater of Shopping||1||1||33%|
|Menrin Park Shopping Center||2||6||70%|
|Mall of Africa||3||2||35%|
|Liberty Midlands Mall||Four||Five||51%|
|Cresta Shopping Center||6||Four||39%|
|Clear Water Mall||7||14||65%|
|Northgate Shopping Center||8||15||59%|
|Canal Walk Shopping Center||9||17||72%|
|Wonder Park Shopping Center||Ten||3||14%|
|South Gate Mall||11||9||19%|
|Colonnade Shopping Center||12||16||42%|
|Westgate Shopping Center||13||8||28%|
|Liberty Promenade Shopping Center||15||Ten||12%|
|Eastgate shopping center||16||20||60%|
|Ink Azi Mall @ Boardwalk||17||11||twenty five%|
|Fourways Mall||19||twenty five||54%|
|V & A Waterfront Victoria Wharf||20||12||13%|
According to Michael du Preez, product and marketing executive at Tracker South Africa, local towns recorded the largest proportional increase due to restricted access to e-commerce sites by shoppers in these areas.
“The number of shoppers may be less than in cities, but the increase in shoppers was still noticeable,” he says.
Notable towns that have recorded increased activity include the city of Luitrichart, Lichtenburg, the city of Matrosona and its surroundings (Klerksdorp), Musinga in Kwazur Natara, Bella Bella and the suburbs of Dilaben (Bethlehem).
Read also: SAA on the precipice again; Black Friday Sale Boost; Zondo Extension, New Eskom Chair
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SA retailers offering big discounts on Black Friday this week. Will this change the fate of the sector?
Source link SA retailers offering big discounts on Black Friday this week. Will this change the fate of the sector?