Black Friday has become Takealot’s biggest sales peak of the year and it expects a big boost in revenue over the five-day Black Friday to Cyber Monday period.
Takealot said it expects an increase in gross merchandise value of at least 50% this year compared to the Black Friday period last year.
The company had R1 million in sales on Black Friday in 2011, R17 million in 2015, and R56 million in 2016.
A 50% increase means Takealot expects to do at least R84 million in revenue this year.
“It could be more than that. We’ve planned for a lot of headroom,” Takealot co-CEO Kim Reid told MyBroadband.
The increase in revenue could be as high as 100% or 150% – or R140 million in revenue.
Reid said retail is struggling in South Africa at the moment, yet despite the depressed economy, Takealot is seeing growth.
The company saw 70% higher sales revenue in September and October this year compared to 2016.
In 2016, the situation was different, said Reid. The market was quite depressed until Black Friday, but it triggered a flood of sales that lasted until Christmas.
Takealot is expecting high Black Friday weekend sales this year, followed by a “robust” December shopping season, said Reid.
Considering that Black Friday is all about deep price cuts, Reid said they still expect it to be worth their while in terms of profits.
Margins will be lower and individual sales won’t be as profitable, but they will see an influx of new customers – which is important for the business to grow.
“We’re certainly not going to give things away for free. We are trying to build the business sustainably,” said Reid.
Takealot has also received support from suppliers for Black Friday, as they see value in the shopping tradition.