Black Friday sales at bricks and mortar stores climbed 11.6% year-over-year including the effects of inflation.
“Black Friday bargain hunting in South Africa continues to spur growth in the retail sector during the festive season shopping period, indicating that price-sensitive consumers are increasingly shifting some of their Christmas spending to November to take advantage of discounts and promotions offered by retailers. This marks a change in fourth-quarter spending patterns,” says Michael McNamara, senior principal, Data and Services at Mastercard.
“Despite fewer shopping days between Black Friday and Christmas, the sales outlook remains positive overall. A shorter holiday season puts more importance on each shopping day of the season, making the role of the internet important in helping consumers instantly compare prices.”
October – South Africa’s third-biggest month for retail spending after December and November – saw retail sales rise 1.2% over the same month in 2018 when the effects of inflation are removed. Including the effects of inflation, retail sales rose 4.2% year-on-year, as consumer prices ticked up slightly in October amidst higher oil prices and a weaker Rand.
Retail sales climbed 4.6% between January and October including inflation, compared to the 5.7% pace seen for the same period in 2018.
“Retail performance this year clearly indicates that the South African consumer remains under pressure. Rising unemployment, decelerating wage growth, a decline in consumer confidence and soaring electricity prices continue to dampen consumer spending. However, as we approach the final few days of the holiday season, South African consumer’s continued appetite for deals and last-minute sales will give a strong final push through the 2019 festive season shopping period,” says McNamara.
Highlights from the Mastercard SpendingPulse October report include:
