Tag: Black Friday

Black Friday is not a charity, consumers warned

Source: Supermarket & Retailer

Black Friday, which falls on 29 November this year, may feel like an annual treat for thrifty shoppers, but it has little to do with altruism. For retailers it is all about maximising consumer spend.

Some Black Friday bargains will save you money, with some items selling at or below cost price, but profit-starved stores, especially those in South Africa under extreme pressure, do not plan to come in at a loss for the day.

Rather, online and brick and mortar stores use the annual shopping day to manipulate consumers, get feet through doors, win hearts and minds, and generate additional revenue.

In South Africa, shoppers spent close to R3 billion at stores on Black Friday 2018 – a leap in spending so high that it even helped ‘save’ the country’s economy after a torrid year. And with South African consumer spending habits often dictated by pay day deposits, it’s an expense that few local consumers can actually afford.

In order to get consumers parting with their cash, and then, ironically, thanking the stores while doing so, retailers employ several tricks and techniques – many of which are refined each year as the shopping day continues to gain traction in South Africa.

This is how stores will try to trick you into spending more money than you probably should on Black Friday 2019.

Stores will build up your bargain-seeking arrogance – to your detriment.

The psychological manipulation starts long before anyone bangs on the store doors early on Black Friday morning itself, and all the retailers taking part are conspiring against you.

Stores use several psychological tricks to manipulate shoppers, but one of the most important is boosting your certainty of finding a great deal on days like Black Friday, according to brand and consumer specialist Martin Lindstrom.

He argued on Bloomberg that most of what we do while shopping is irrational and subconscious, and calls the mall “the soul of seduction”. The more rational shoppers think they are, he says, the more likely they are to be manipulated.

In other words, you might think it’s entirely rational, and even pretty genius, to be tracking down that amazing deal on Black Friday – but if anything, this confidence just means you’re more likely to fall prey to their tricks.

Building up the hype prior to Black Friday reinforces the idea that great bargains are to be had. Also watch out for messages that tease limited availability and the need to pounce on deals while they are available, rather than sitting on the idea of buying that brand new washing machine until it is “too late”.

“Limited stock” is just that – especially if the numbers aren’t specified.

Mainstream stores will not risk being caught for fraud; if they advertise a once-in-a-lifetime discount of tens of thousands of rands, they really will sell at that price. But there is no requirement for them to have enough stock to make sure you too can get that item at that price.

Be especially worried when the level of stock is not specified, because “limited” can mean “one”.

Stores count on the fact that the adrenaline rush of Black Friday will make you grab a “deal” you haven’t properly researched when limited stock means you can’t get exactly what you want – especially after you’ve camped out on a cold floor all night or obsessively clicked “refresh” on a web page.

Retailers lure you in with great deals, and then subtly tempt you to buy stuff that is not on sale

The concept of loss leaders – items that aren’t necessarily profitable, but sold to attract customers to other items – is nothing new, and not exclusive to Black Friday, either.

Between online research and social media, retailers have to offer genuinely good deals to get feet through their doors rather than those of competitors. If they draw enough traffic they may be able to offset the losses with higher volumes on regularly-priced goods, and they tend to do everything in their power to convince you to buy those.

In some cases it seems as if stores also subtly mark up items they think shoppers may not know the value of, and let the halo-effect of Black Friday give the impression that these too are really good deals.

Loss-leading is not a failsafe way for stores to generate profits, but they do work – to the extent that they’re banned in many US states and European countries.

The products on sale may be old….

Check the model numbers of the hot ticket items that are deeply discounted, and you may find that the products are anything but new.

Events like Black Friday are a great way to move old items that haven’t sold through the year, and probably won’t move during Christmas shopping either – and which will only drop in value as they are outpaced by newer models with new features or technologies.

These can still be great deals if you know what you are in for, and if you are happy with last year’s model, or one with limited features. Just don’t be caught with a “new” TV that isn’t quite what you expected.

… or inferior

Because American consumers can now be counted on to flood into stores for Black Friday, some manufacturers create products especially to capitalise on that spending.

In at least some cases, these special product lines are cheaper to make, and inferior, to mainstream product lines that carry the same name. Because of this, Forbes suggests that the very bastion of a Black Friday deal – the not-so-humble flat screen television – is better bought at other times of the year to avoid buying “toned down, derivative models”.

If you can’t find the model number for a common item from a big name with a simple Google search, beware.

You are not being paranoid: some stores will quietly increase prices before Black Friday to claim bigger discount levels.

As with some online stores in South Africa, those dramatic double-digit percentage discounts on offer come 29 November will not necessarily be as attractive as simple math would suggest.

That’s because in order to hit the advertised discounts, some retailers quietly increase the retail price of sale items a few weeks before the event.

That way they can genuinely claim a discount compared to what they were charging before, even though that is not necessarily the price that was generally charged.

Chances are you’ll get the same thing at the same discount later – and you may do even better.

It’s easy to fall into the temptation trap of Black Friday and think it’s the only sale of the year. But, in the US market at least, CNN claims that there are the same – if not better – deals to be had at other times of the year.

And the South African seasonal retail cycle is looking more and more like that of America, as Black Friday and Cyber Monday take hold here.

Sales on things like clothes and outdoor equipment are often dictated by the changing weather, so if you’re after summer fashion items, you may be better off waiting a few months after Black Friday.

Likewise, South African electronics stores increasingly release items like smart phones and televisions soon after they launch elsewhere. Those launch dates are often linked to big international events, such as the Consumer Electronics Show in the US.

So if you lust after a big-ticket item such as a new iPhone or a large TV, you might be better syncing your sales clock with, say, Apple’s international releases, and waiting for the fire-sale price drops that come when that now top-of-the-line phone suddenly becomes a previous model.

Pick n Pay has big Black Friday 2019 plans

Pick n Pay’s planning for Black Friday 2019 began straight after the shopping holiday ended last year.

  • The retailer worked to gauge what customers most enjoyed
  • They looked to improve shopping experience
  • They ran a trial Black Friday on 27 September
  • Plans were made months in advance with suppliers to ensure that it has the right stock available, at the right prices, in the right quantities across the right stores
  • Arrangements for extra deliveries to stores over the weekend and add extra delivery and collection slots to our online shop
  • The staff complement was increased
  • Black Friday 2019 will involve deals at different times throughout November as well as weekly online-only deals for customers
  • It will involve a range of products from fresh food to grocery staples, appliances, liquor and clothing

Black Friday sales expected to soar in SA

Source: African News Network

South African business have begun preparing for what looks to be another bumper Black Friday trading day, with sales predicted to be up 30% from last year, online largest payment service provider PayGate said.

South Africa has like several other countries adopted “Black Friday”, the informal name for the day after Thanksgiving in the United States which marks the beginning of the Christmas shopping season. This year, it will fall on November 29.

Data from retail tracker Black Friday Global shows interest in Black Friday deals in South Africa has grown by 9,900 percent over the past five years, PayGate said in a statement on Tuesday.

“PayGate’s tracking of payments for Black Friday, meanwhile, shows the number of transactions doubling every year for the past three years, and payment clearing house BankservAfrica says it saw a 55 percent growth in transactions in 2018 compared to the previous year,” it said.

“PayGate expects 2019 Black Friday transactions to grow by 30 percent this year.”

It however said South Africa’s e-commerce growth was generally coming off a very low base, having really taken off only in the past three years or so.

The company said it had processes some 64 percent of Black Friday transactions last year, and expected this to rise to as much as 70 percent in 2019.

South African business have begun preparing for what looks to be another bumper Black Friday trading day, with sales predicted to be up 30 percent from last year, online largest payment service provider PayGate said on Tuesday.

Source: Supermarket & Retailer

Data shows that 2 out of 3 South African consumers participated in Black Friday shopping at some point, according to Isana Cordier, sector head for consumer goods and services, corporate and investment banking at ABSA.

ABSA card data indicates that, on average, every last Friday of the month consumers spend about 55% of purchases on groceries.

On Black Friday, however, this changes and durable goods make up about 20% of purchases.

“It, therefore, seems that consumers are holding back spending on those durable items to buy them on Black Friday. South Africans especially like to spend on electronics on Black Friday,” Cordier said at a recent consumer insights event hosted by ABSA in Cape Town.

Black Friday has become the biggest spending day of the year in the SA retail sector, with more than R3bn spent last year.

Another interesting trend for her is that, whereas Black Friday shopping in SA was initially mostly centred around Gauteng and the Western Cape, the “frenzy” has started to spread to other provinces as well.

For instance, the Eastern Cape now makes up about 7.2% of Black Friday spending in SA, KwaZulu-Natal 14.2% and the Free State 4.1%. Gauteng still accounts for 37% of spending in SA on Black Friday.

Fin24 reported last year that retail sales over the Black Friday and Cyber Monday period most likely “saved” the South African economy in November, according to the BankservAfrica Economic Transaction Index (BETI).

On Black Friday and Cyber Monday, a total of 5.2 million card transactions were recorded.

More significantly, according to the BETI report, there was 55% growth in online sales for Black Friday and 36.4% for Cyber Monday.

Black Friday weekend in numbers

According to an article by Business Tech, online sales for Black Friday and Cyber Monday 2018 exceeded figures for 2017.

BankservAfrica provided Business Tech with the following figures on one of the biggest shopping days of the year:

  • A total of 581 189 online transactions were processed over the weekend
  • 404 594 online transactions were recorded on Black Friday
  • The single most expensive transaction for Black Friday was over R6-million
  • The single most expensive transaction for Cyber Monday was R5-million
  • Black Friday shopping peaked between 08h00 and 09h00
  • Cyber Monday shopping peaked between 10h00 and 11h00
  • The average number of transactions per minute peaked at 695 on Black Friday
  • Transactions averaged at 281 per minute on Black Friday
  • The average number of transactions per minute peaked at 277 on Cyber Monday
  • Transactions averaged at 1251 per minute on Cyber Monday
  • Black Friday saw 55% year-on-year growth in online transactions
  • Cyber Monday transactions were up 36% year-on-year 

The United States, where the trend originated, also saw some big numbers:

  • Cyber Monday sales surged to a record $7.9-billion spent online
  • This is a year-on-year increase of 19.3%
  • Black Friday pulled in a record $6.22-billion in e-commerce sales
  • Transactions on mobile devices were up 55.6% on Cyber Monday, generating $2.2-billion in sales
  • Cyber Monday marked the biggest shopping day in Amazon’s history
  • Amazon Black Friday and Cyber Monday combined saw the purchase 18-million toys and more than 13-million fashion items

Source: 702

On Black Friday, most shops opened very early to allow shoppers to start helping themselves to the deals.

EWN reporter Shamiela Fisher reported that Checkers in Goodwood had long queues before 6 am. According to the manager, the staff had to be collected as early as 2 am to ensure that everything is in order by the time shoppers arrive.

EWN reporter Refilwe Pitjeng was monitoring Mall of Africa, Sandton and Woodmead in Gauteng.

She says toilet paper was the most popular item and Mall of Africa was out of stock.

Source: Fin24

Deeply indebted consumers have been warned not to splurge on Black Friday and Cyber Monday sales as retailers tempt even the most financially distressed, said Debt Rescue CEO Neil Roets.

Black Friday is taking place on Friday, 23 and Cyber Monday, 26 November.

“While it is true that there will be some very tempting deals on offer, consumers should think long and hard before plunging themselves even deeper into debt by splurging on luxury goods that they most likely don’t need.”

Roets said that over the past several years, his firm has seen the impact that Black Friday and Christmas shopping sprees have had on consumers over reckless spending .

He pointed out that South African consumers collectively owe their creditors in excess of R1.7trn with most of them three months or more in arrears with their repayments.

“We are far from seeing the light at the end of the tunnel. It is our belief and many leading economists share that belief that we are far from staging a recovery.”

Roets was on the view that things are going to get a lot tougher before they get better.

“Now is not the time to act recklessly. On the contrary – it is more important now than ever before to implement fiscal discipline and save whatever money is left over at the end of the month.”

Roets suggested that consumers only buy what is absolutely necessary.

“While we all feel that we desperately need a holiday and the end of a brutal year, keep those holidays within budget and don’t think that if you don’t have the money for school fees in December that the money will somehow, magically become available in January when the schools reopen,” he said.

SA retailers reveal deals for Black Friday 2018

By Lauren Hartzenberg for BizCommunity

Retailers and shoppers are gearing up for the biggest sale day on the retail calendar, Black Friday, taking place on 23 November this year. The event marks the beginning of the festive shopping season. It also allows consumers to save on Christmas shopping and retailers to boost sales and move stock before the festive season really kicks in.

Black Friday has picked up steam in South Africa since its entry into the local market in 2015, with a growing number of retailers and brands participating in the event each year. 2017 was the strongest Black Friday to date for consumer electronics sales in South Africa, and Superbalist celebrated its biggest trading day with over 118% year-on-year growth.

This year, many local retailers opted to extend the sale weekend into a week- or month-long affair, possibly to secure spend from those consumers whose payday only falls in the week after Black Friday.

Below are some of the retailers that have confirmed participation in Black Friday 2018:

@home
@home will offer discounts across categories on Black Friday. Deals include R3000 off a Smeg Mixer, R7000 off couches, up to R1,000 off pot sets, and further deals on kitchen, dining, décor, bedding and furniture ranges.

American Swiss and Sterns
TFG-owned jewellery stores American Swiss and Sterns will be offering in-store specials of up to 50% off selected jewellery and watches.

Clicks
Clicks is holding an online only Pre-Black Friday Extravaganza from 16 November to 22 November, that continues over the Black Friday weekend, in stores and online, and concludes with Cyber Week from 25 November to 2 December (online only). The deals are exclusive to ClubCard members.
The retailer has promised the following specials: Up to 70% off technology and accessories, up to 50% off beauty products, up to 50% off electrical products, up to 50% off household products, up to 40% off health products, up to 30% off baby products.

Dion Wired
Starting on 22 November at midnight, right through to 23 November, Dion Wired shoppers can save up to 53% on a variety of brands both in-store and online.

Faithful to Nature
Faithful to Nature is running its Black5Day Sale on its site from 19 to 23 November. Each day reveals new specials with savings of between 40% to 50% on wellness and eco-friendly brands like Wazoogles, Back2Nature, Bee Natural and Triple Orange.
The retailer will also donate a portion of their turnover from the Black5Day Sale to Endangered Wildlife Trust to support them in their animal protection movements, from poaching to climate change, habitat destruction and pollution.

FirstShop
FirstShop will run Black Friday deals from 21-27 November, with discounts across categories including laptops, desktops, monitors, hard drives, PC components, headphones, speakers, and PC peripherals.

Foschini
Shoppers can get access to Foschini’s best Black Friday deals by signing up to TFG Rewards to qualify for an exclusive preview taking place in stores nationwide on Thursday 22 November at 4pm. For extra offers and more info around the sale, customers are urged to sign up to Foschini’s newsletter.

Game
Game launched deals as early as 7 November to build up momentum for the main shopping event on Black Friday. The retailer promises discounts across all categories at all its 145 stores in South Africa and Africa on the day, and some stores will be opening several hours earlier than normal – some as early as midnight on 22 November – to accommodate the rush.
Additionally, on Cyber Monday shoppers will be able to pick up “phenomenal deals” on a variety of tech products including laptops, tablets, smartphones and digital accessories.

Makro
Makro is running a 5-day Black Friday promotion from 21-25 November 2018, with price cuts on over 26,000 products. Mobile POS systems will be rolled out during the sale, letting customers purchasing a small number of items pay while standing in a queue. In-store trading hours have also been extended for the period.
Interestingly, the retailer has partnered with Uber to offer a R50 discount on rides to and from Makro outlets in Johannesburg, Cape Town, Durban and Port Elizabeth. The voucher code MAKRO5DAY can be used twice per rider.

Markham
Markham is giving shoppers up to 50% off its fashion sale goods. The ‘Make your Mark’ Black Friday offer is also available in its Relay Jeans stores and on both online sites.
myTFGworld.com
Black Friday deals from TFG’s new marketplace include box sets of family favourites from Reader’s Warehouse at 20% off, fresh flowers and bouquets from Bloomable at 20% off, and a free retro phone with any Pylones purchase.

Pick n Pay
Pick n Pay got a head start on Black Friday, announcing online deals as early as 5 November. Online customers can expect discounts of up to 50% across various categories on the Pick n Pay’s online shop, including liquor, food, toiletries and household products. Deals have also been launched for select appliances. Deals will run weekly from 5 to 25 November.

Pricecheck
On Black Friday, price comparison site PriceCheck will have a list of curated Black Friday deals, encompassing all site-wide deals either above 30% or equal to R2,000 or more in saving. PriceCheck’s Black Friday deals will run from 19 November to 26 November, with category specials running daily in the build-up to Black Friday.

RunwaySale
Online fashion retailer RunwaySale will be running a week-long promotion, starting at 5am on 19 November and ending at midnight on 25 November.
Daily escalating discounts will be available on thousands of designer fashion and accessory brands, culminating in up to 80% off. There will also be exclusive offers for VIP shoppers, early launch sales and other daily pop-up specials.

Shoprite
Shoprite is promising “lower prices than ever” with up to 50% off on selected products on Black Friday. All deals are valid on 23 November 2018 while stocks last.

Sportscene
Sportscene Shoppers can score up to 75% off selected sneakers and shop a curated selection of streetwear apparel and accessories at up to 50% off.

Superbalist
Superbalist is running various Black Friday specials for five days, from 23 to 27 November, with new deals unlocked each day. These deals will be revealed via email, on the mobile app and via a Facebook event. Superbalist has also super-sized their 2018 Black Friday sale to run for five days.

Takealot
Takealot’s famous Blue Dot Sale will run for five days with discounts of up to 60% on Black Friday, throughout the weekend as well as on Cyber Monday and Takealot Tuesday. Download the Takealot.com app for access to pre-Black Friday sales, app-only deals and sneak previews.

Teljoy
South African online retailer for electronics, furniture and household goods, if offering Black Friday discounts for a whole week, from 19 November to Cyber Monday on 26 November. Brands on sales include Hisense, Panasonic, Huawei, HP, Mecer and Defy.

The Fix
Fashion retailer The Fix will have buy-one-get-one-free offers both in-store and online this Black Friday. TFG Rewards customers get exclusive access to Black Friday offers at The Fix all day on Thursday, 22 November.

The Gadget Shop
The Gadget Shop will run a Black Friday sale from 23-25 November, with 20% off all products except for DJI drones, and up to 50% off selected products. There will also be buy-one-get-one-free specials on selected products. The Gadget Shop will also run Cyber Monday online-only deals.

Toys R Us
Toy retailer Toys R Us says it will be running Black Friday deals on its top brands with up to 70% off.

Zando
Zando is offering up to 90% across categories on its site, including on major brands like Adidas and Puma. Beginning at 00:01 on Friday, 23 November the Zando Black Friday sale will run over the entire weekend including Cyber Monday.

A guide to buying on Black Friday

Source: News24

Research shows that the Black Friday phenomenon has grown faster in South Africa than any other country in the world.

Black Friday, a retail promotion that takes place on the last Friday of November after the American Thanksgiving holiday, originated in America in the 1950s.

Last year, PriceCheck saw three times the number of daily visits to its online shopping comparison website on Black Friday, and twice the number on Cyber Monday, compared to its 2017 average.

In addition, these visits were on average 30% longer than the 2017 average duration. This year is likely to surpass that, with PayPal predicting that South Africans’ online shopping spend will top R53bn by the end of 2018, up from R37.1bn in 2017. But as the South African online shopping market grows, providing more to choose from, shoppers should put a game plan in place to ensure they get the best deals from the most reliable, and secure retailers.

Lebogang Mokubela, founder of township-based retail marketing company Lemok Group, says: “Black Friday marketing has been exceptional with millions of rand being invested to draw crowds to their offerings.”

Taking a look at shopping centres across the country with a combined GLA of approximately 23.4 million square metres, an average of 3.2% of tenants participated in Black Friday in 2016 and an average of 21% of tenants participated in Black Friday in 2017 – an increase of 17.8% year on year, Mokubela says. Small regional shopping centres indicated a growth average of 31% year-on-year.

Tips for getting the best deals on Black Friday

  • Have a plan. Know what you want, need and can afford before you get enticed by all the shiny offers in front of you
  • Choose a secure way to pay: credit card payments that ask you for a supplementary one-time pin – such as Verified by Visa, Snapscan and PayPal – are all good options
  • Take note of the delivery and return details. Will you get the purchase when you need it, and if you need to return it, will you end up paying more on delivery costs?
  • Look out for hidden costs or additional purchases you might need to make
  • Compare deals: similar deals might be packaged slightly differently, so make sure you are comparing apples with apples
  • Only buy from reputable retailers so you can be sure you will receive authentic products

Source: Supermarket & Retailer

If 2017 is anything to go by, Black Friday is quickly becoming one of the busiest South African shopping days and, like the US, marks the beginning of the Christmas shopping season.

This year, online retailers are preparing for even more hype, but are we getting ahead of ourselves? Let’s take a step back and review what we can learn from previous years:

1. Start early to reap rewards
As early as October 2017, the N1 in Gauteng bore the fruit of well-planned marketing campaigns with enticing billboards. Research shows that more than 50% of holiday shoppers start researching gift ideas in October or earlier. This tells us that we need to plan ahead, and by early November, you’ll need to kick off your campaign to ensure marketing ROI.

Not only does this give you more time to generate opportunity, but useful, published links will start building page SEO – crucial in the ever-competitive e-commerce sphere. Major retailers are pulling out all the stops from well-segmented email marketing to encouraging customers to add products to their carts ahead of the day. But, Black Friday does not only attract the big players but the smaller retailers too. In 2017, Nichemarket listed more than 500 participating stores from niche to e-commerce giants.

2. Integrate and personalise
Sure Black Friday has a certain, recognisable look, but marketing efforts have become more personalised. Think beyond the homepage and set up custom product landing pages. Integrate these with your social media platforms for wider reach. Remember to include your marketing material throughout for a consistent, familiar message. Entice consumers with a clear USP.

3. Set the clock to create urgency
It’s a one-day-only type of thing, so get in with the hype and add a countdown timer to your website. Like Takealot, you can offer exclusive discount newsletter sign-ups with early deal leaks to get your customers on board. If you decide to extend the frenzy to Cyber Monday, communicate this with your customers before-hand. In 2017, Superbalist did this well by gamifying their deals with locks. Not only did they keep their customers informed but engaged throughout the entire weekend.

4. Make the most of seasonal shoppers
Before Black Friday, you need to have your Christmas specials in place to benefit from the Black Friday hype that still lingers. Allow it to link with Black Friday and continue to drive sales after the big day as people continue to shop over the entire holiday season.

5. Involve the entire team for great customer experience
On Black Friday you’ll be very busy. Whilst it’s important to drive sales, involve the entire team to ensure that you don’t neglect your customers. Done right, Black Friday is a great brand awareness tool, but if your customer experience suffers, even the brand loyalists may stray afterwards. You may need to hire extra staff or work longer hours.

6. Consider an omnichannel approach
Customer satisfaction extends to shipping, so consider offering free delivery or perhaps an in-store collect option for those yearning immediate gratification on their spend. It is important to understand the interchange between physical and online stores – consumers prefer an omnichannel approach where they can research and shop both online and in-store.

7. Offer generous discounts
Leading up to Black Friday, Game launched its online store with generous discounts knowing that it would motivate new and on-the-fence consumers to purchase. In the US “Black Friday bargains were bigger, on average, last year“.

Small, negligible discounts just don’t match the hype and it certainly won’t attract the powerful (and savvy online shopping) millennial consumer market. Before your brand jumps on the BF bandwagon, it may be wise to assess whether it’s worth it? Some shops choose deliberately to opt out and so could you.

8. Accommodate mobile users
Make it easy for customers to shop online by optimising your mobile checkout process. Consider adding a one-click checkout option to streamline the process, and offering real-time online support for quality customer support.

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