Black Friday acts as a launchpad for festive season sales success

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The research, commissioned by Capital Connect, shows total retail sales for 2024 are forecasted to be 19% higher in November 2024 and 48% higher in December 2024, than the average retail sales for the first 10 months of the year.

The data, from research conducted by the Bureau of Market Research (BMR), projects total retail sales of nearly R169bn in December 2024 and R136bn in November 2024, compared to a monthly average retail sales of R114bn for January 2024 to October 2024.

This shows how consumer behaviour has evolved in recent years, with shoppers using November as a warm-up for a month-long festive season shopping spree.

Retail sales performance can be broken down as follows:

ºNumbers rounded up or down to one decimal point.

“Black Friday has become more than just a single day of deals—it’s the kick-off for festive season shopping,” says Steven Heilbron, CEO of Capital Connect.

“With signs of improved consumer confidence this year, Black Friday is a potential springboard into a strong holiday season for South African retailers.

“Our data projects that sales momentum will carry from November into December this year, particularly in sectors like general goods, clothing, specialised food and beverages, furniture and electronics. To maximise revenues, retailers should strategically plan inventory and marketing to meet rising demand.”

How retailers can navigate the prolonged Black Friday shopping season

14 Nov 2024

Retailers can capitalise on the springboard effect through actions such as:

• Tight management of inventory and logistics: Retailers should align inventory levels with expected spikes in demand in December. Having stock that can meet the demands for both last-minute holiday shoppers and pre-planners, will help prevent missed opportunities.

• Leveraging Black Friday insights for December strategies: By tracking Black Friday sales data, retailers will gain valuable insights into customer preferences and buying behaviours, allowing for targeted promotions and product highlights. As the festive season peaks, adjusting marketing campaigns to reflect trends observed in November can help keep momentum going.

• Optimising online and in-store experiences: Retailers should offer omnichannel customer journeys that maximise reach and sales. Expert advice or hands-on demos in-store could attract customers who value real-world experiences and love to shop. Online ordering, delivery options and in-store pickups can target consumers looking for convenience.

• Making it festive: Targeting customers with festive events can help drive foot traffic. Examples are festive treats served in your coffee shop, Christmas lunch cooking and baking classes, or an opportunity for kids to meet ‘Father Christmas’. The right signage and store décor also go a long way during this time of the year.

• Positioning for wallet share: Savvy retailers will aim to capture as much revenue as they can from each customer with a diverse, well-priced product selection. Offering a mixture of price points and products can help to maximise revenue share. White label brands and product bundles can also provide effective basket value.

“As retailers prepare for the holiday shopping season, fast access to opportunity capital becomes crucial to maximise profitability,” says Heilbron.