Big shift in Black Friday spending in South Africa
Online payment platform Payfast says South African shoppers were more strategic in their Black Friday purchases in 2023.
Payfast managing director Brendon Williamson explained experienced Black Friday enthusiasts approached the day with a meticulously crafted strategy, pre-selecting desired products and leveraging price reductions weeks before the retail event.
“With access to platforms that monitor item products over time, shoppers can gain valuable insights into price fluctuations throughout the year, and gauge whether their wish-listed products really are at a good price,” Williamson explained.
“It’s no longer just about shopping — it’s a strategic approach.”
Payfast said retailers with general merchandise or convenience food stores, family clothing stores, discount stores, and clothing stores came out on top in Black Friday sales this year.
Payfast said people stocked up on essentials and small treats after a tough financial year.
“As the cost-of-living climbs, and inflation remains high, the choices around when and where to spend money have gained greater significance – particularly when considering significant purchases like appliances or electronics,” said Williamson.
Payfast’s findings from these shopping trends correlate with South Africa’s biggest online retailer — Takealot — which also found that groceries and essentials were its most popular products.
Takealot’s bulk shopping proposition — “ALOT for Less” — saw a 65% jump in sales by units over last year.
Brendon Williamson, Payfast managing director
With shoppers spending more on lower-cost essential goods and less on luxuries, the average basket size of transactions made on Black Friday itself through Payfast’s gateway declined from R1,689 in 2022 to R1,364 in 2023.
The single biggest transaction that Payfast recorded this year was R627,000 — a record amount for the platform.
Despite multiple retailers offering discounted products throughout the month, online shopping activity on Payfast spiked on 24 November 2023, because some retailers saved their best prices for Black Friday itself.
The highest number of transactions occurred between 09:00 and 10:00 AM, although Payfast also noticed shoppers who waited up earlier in the morning to be first to grab limited stock deals when they went live at midnight.
Other trends it noticed on the day included an uptake in QR code payments, with the volume of payments made using platforms like Zapper increasing by 63%.
“Scan to Pay facilitated payments also increased by 44%,” Payfast said. “This highlights a key trend towards quicker and more convenient payments, that facilitate a seamless checkout experience.”
Payfast speculated that as Black Friday became more commonplace, merchants might start extending their sales period through to the festive season.
“This aims to attract a broader range of buyers and manage the surplus stock from Black Friday,” said Williamson.
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