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Black Friday 2023: Retailers to get a R24 billion boost
The Black Friday season is expected to create additional retail turnover of R26.6 billion for South African retailers in 2023.
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The Black Friday season is expected to create additional retail turnover of R26.6 billion for South African retailers in 2023, creating some 150,000 job opportunities across the South African economy, most of them temporary or seasonal, and representing a significant increase over the R19 billion in additional sales generated in 2022.
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WHAT CAPITAL CONNECT MAKES OF 2023 BLACK FRIDAY
This is according to new research conducted by the Bureau of Market Research (BMR) on behalf of Capital Connect.
Despite the gains over 2022, additional sales value for 2023 over the Black Friday period is still behind the additional R42 billion in additional retail turnover generated in the same period in 2021. Following two years of weak economic growth, 2023 is not expected to reach the heights of 2021, when sales were lifted by more than a year of pent-up demand after the COVID-19 lockdowns.
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HOW RETAILERS ARE EXPECTED TO PERFORM
Forecasts for performance by retail subsector for the period between 29 October and 26 November 2023 are as follows:
- General dealers: R 9.3 billion gain.
- Food, beverages and tobacco: No significant gains.
- Pharmaceutical, medical goods: No significant gains.
- Textiles, clothing and footwear: R 15 billion gain.
- Household furniture, appliances and equipment: R 1.6 billion gain.
- Hardware, paint and glass: R 707 million gain.
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BLACK FRIDAY AND FESTIVE SEASON EXPECTED TO BRING RELIEF
“Black Friday 2023 and the festive season provide a unique opportunity for savvy retailers to capitalise on increased consumer spending,” said Steven Heilbron, CEO of Capital Connect..
“Beyond this seasonal surge, the IMF’s revised economic outlook for 2023 indicates that South Africa’s GDP growth may come in at a higher than expected 0.9%. This indicates slight improvements to market conditions for retailers,” Heilbron explained.