With Black Friday approaching, consumer spending during this retail bonanza is expected to surpass $166 million. However, mixed feelings persist among shoppers about the event's relevance and value.

While some consumers are gearing up to splurge, particularly on technological items, others remain sceptical about the authenticity of the discounts.

Social media platforms like TikTok are rife with videos alleging that many Black Friday deals are merely marketing ploys. Shoppers claim prices are often inflated before being marked down to create the illusion of a discount.  

One consumer expressed their frustration, stating, "Black Friday is like a scam. You see videos showing prices that haven't changed. It's not exciting, and with the economy being bad, people can't afford much."

This sentiment reflects broader concerns over the rising cost of living, unemployment, and high interest rates, which have dampened enthusiasm for retail splurges.  

While traditional in-store shopping is expected to decline, electronic transactions and e-commerce are seeing significant growth.

Christopher Boxall, Head of Card and Fraud Detection at First National Bank, highlighted the increasing adoption of digital wallets, projecting a 40% surge in usage year-on-year. Online sales are expected to grow by over 10%, indicating a clear shift in consumer preferences.  

"Electronic transactions are growing at double digits, with a year-on-year increase of 25% in the first quarter,"said Boxon.

This growth spans various income groups, with younger consumers and older demographics alike embracing digital payment platforms.  

Similarly, CP Alexander, Absa Bank's executive for card issuing and rewards, noted that e-commerce transactions are outpacing physical retail spending. On average, online purchase values have risen from $350 to $430, while in-store spending has slightly decreased.  

This year, Black Friday falls on November 29, just after major paydays for many consumers. According to Alexander, this timing is expected to drive higher spending levels.  

"When Black Friday coincides with payday, we typically see increased spending as customers have more funds available," he explained.  

This trend is further supported by data from First National Bank’s merchant services division, which processed 18.4 million transactions in October 2024. The number is expected to climb to 19.5 million this Black Friday, showcasing the growing momentum in retail activity.  

While technological items remain a popular choice, there are signs of diversification in spending habits. Travel-related purchases are gaining traction, indicating a shift in consumer priorities.  

Boxon remarked, "There is notable growth in sectors like travel-related spending, which could see a significant boost this year."  

Improved consumer confidence and stabilising economic conditions have contributed to the optimistic spending projections. However, the lingering effects of the cost-of-living crisis continue to affect many shoppers. Unemployment and high prices are prominent barriers, with some consumers reluctant to participate in Black Friday promotions.  

"Everything is still expensive, and unemployment remains a big issue. Black Friday feels like just another sale," one consumer lamented.  

As Black Friday approaches, African consumers are navigating a landscape of optimism and scepticism.

While improved economic conditions and the convenience of digital transactions are boosting spending prospects, concerns over inflation and the authenticity of discounts remain prevalent.

Retailers will need to address these challenges to fully capitalise on the continent’s resilient consumer base.

--ChannelAfrica--