Media Coverage

Capital Connect advises that Consumers and Retailers eagerly await Black Friday 2024

Find out about the latest consumer behaviour predictions and trends that will increase retail sales in 2024.
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For many retailers, winter is one of the weakest periods for retail trading in South Africa, however, a big data analysis commission by Capital Connect shows that retail sales tend to pick up in winter after the quiet autumn months.

Research conducted by the Bureau of Market Research (BMR) finds that retailers can profit by stocking up on pharmaceutical goods, winter clothing and certain foods and beverages.

Biometrics-enabled ATMs have a key role to play in promoting more secure retail environments and enhancing accessibility to financial services in South Africa. That’s the word from Patience Rolls, executive head of cash and ATMs at EasyPay Cash, one of the automated cash management solutions offerings at Cash Connect, and part of Lesaka Technologies.

The Easter shopping season is anticipated to mark the beginning of a retail turnaround in South Africa, as indicated by a mixed method research study conducted by Capital Connect.

The weakened retail enviroment stemmed from low domestic economic growth, leading to rising unemployment and heightened consumer financial vulnerability.

South African retailers that go completely cashless potentially risk excluding large portions of their customer base. With nine out of ten transactions in South Africa still made in cash, removing this option limits customer choice in payment methods.

That’s according to Mark Templemore-Walters, Operations Director at Cash Connect, part of the Connect Group. He says that cash still has a vital role to play in the retail ecosystem, especially for unbanked and underbanked consumers who still form around 15% of the population.  

South African retail industry is likely to ramp up its investment in automation and artificial intelligence (AI) in 2024 as it looks for new ways to drive innovation and outsmart its competitors.

This aligns with global trends, with research from Honeywell showing that six in 10 retailers worldwide plan to adopt AI, machine learning and computer vision over the next year to enhance the shopping experience.

South African retailers need to sharpen their customer offerings and create omni-channel experiences or risk losing more and more business to international giants.

There’s nothing more convenient than shopping while lounging on your couch in your comfy pants – which is why e-commerce has grown its market share stealthily over the last few years.

South Africans are not the only ones gearing up for Black Friday – retailers are equally upping their game to cash in on the pre-festive season fever.

While 2023 proved to be economically challenging for businesses and households alike, retailers are planning to make up for financial losses incurred throughout the year.

Estimates indicate that R60.4 billion will be spent in retail over the November and December period.

Black Friday which was once associated with an American retail event has gained significant popularity in South Africa.

The massive shopping gateway that occurs on the last Friday in November has been rumored to be the silver bullet, paving the gateway to various opportunities for businesses to accelerate their growth to maximize profits.

Formal retail sales for Black Friday and the festive season are expected to top R60.4 billion.

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With ecommerce in South Africa breaching the R55 billion a year barrier, home delivery has become a way of life for the country’s consumers. Yet delivery isn’t the right fit for every retailer’s customer base or business model. Each merchant should balance the potential revenue gains against the costs and drawbacks of home delivery.