South Africans will get great deals on Black Friday 2020 because retailers will be fighting to capture whatever disposable income customers have available.
This is according to Peter Harvey, MD of DPO South Africa – which includes PayGate in its portfolio of payment services.
Harvey also highlighted that customers will take extreme measures to get the best possible deals.
“Consumers should be aware that the average South African shopper has become Black Friday savvy and bargain-hunters will be filling carts ahead of time to ensure they just have to checkout as soon as the sales begin,” said Harvey.
Retailers will also be prepared for the usual surge in traffic on Black Friday.
“The banks, payment service providers, and card associations are all ready for the surge in transactions and so technically we are confident of a well-managed experience this year,” said Harvey.
“Teams on standby around the clock and careful monitoring will be a matter of course.”
Black Friday spending to decrease
Harvey believes that while deals will be better, Black Friday spending as a whole will decrease in 2020 compared to last year.
This is specifically the case with in-store shopping, as ecommerce sales are expected to remain similar to last year’s numbers because a lack of disposable income will be countered by more people discovering online shopping during the national lockdown.
“The bleak economy, dented disposable income, and a very uncertain future will take its toll on transactional growth this year when compared to the record years that have gone before,” said Harvey.
He said that Black Friday – which will take place on 27 November – will still serve as an immensely valuable opportunity for retailers to bolster their annual revenue numbers – particularly those who sell their products online.
“We know it’s going to be difficult to predict anything this year. Everything remains uncertain, but I do think we can expect to see the 2020 ecommerce numbers remaining steady,” said Harvey.
Harvey expects fewer big-ticket items to be purchased this year, while popular purchases will include DIY and home improvement products, as well as experiential purchases.
“The travel and tourism sector is one to watch this year. We can expect a jump in experiential purchases as people look to feed their desire to get out of the house and into the world,” said Harvey.
“While international travel remains fairly limited, both by cost and by the list of countries who will admit visitors, local tourism is sure to benefit from some spend come November.”
“This is great news for our local travel businesses which should ensure they are ready with great deals for a cabin-fevered public.” said Harvey.
Get your business online
Harvey said it is critical that businesses get their products online ahead of Black Friday so that they can take full advantage of the yearly retail phenomenon.
“Getting an ecommerce offering up and running is imminently possible between now and 27 November,” said Harvey.
Harvey said that this is especially true of small retailers, and highlighted PayGate’s new DPO Store offering, which is built by the PayGate team and can accommodate up to 150 products, offers integrated delivery, and can be running within 5 days.
“Given South African’s growing preference for online offerings, it would be foolhardy to miss out on all that potential business, especially this year as even more shoppers will choose to go digital rather than risk crowded stores and malls.”