South Africans are preparing for the most exciting Black Friday weekend yet, but this year, it’s less about flashy impulse buys and more about smart, thoughtful shopping. Drawing from its considerable client base of over 23 million South Africans, Capitec predicts a trend of more deliberate spending, exemplified by clients spending R4 billion at the top grocery retailers last year.
Francois Viviers, Executive of Marketing and Communications at Capitec says, “Gone are the days of impulse splurges. Black Friday has transformed from a one-day electronics and luxury shopping frenzy into a strategic, multi-day hunt for essential items, with grocery retailers now dominating where electronics stores once reigned. Our analysis indicates that 2024 will further cement this shift as South Africans continue to adapt their shopping habits in response to economic pressures. More households are planning and using tools like budgeting and saving goals to ensure their spending supports their financial future.”
Strategic shopping patterns set to intensify
The leading digital bank’s analysis of client spending behaviour from 2021 to 2023 reveals diminishing Friday transactions, with peak 2023 transaction rates on Black Friday dropping from 420 financial transactions per second in 2022 to 400 in 2023. However, Saturday emerged as South Africans’ preferred shopping day last year mainly since Black Friday fell on 24 November, one day before payday. This momentum carried through the weekend and into Monday, showing significant increases from 269 to 307 on Sunday and 256 to 320 transactions per second on Monday. According to Capitec transaction analytics, the rate of spend and volume of transactions almost doubled on Black Friday to a peak of R680 000 per second, indicating the tremendous value processed by the bank on the day.
Capitec sees this as an indication of evolving consumer behaviour, where clients prefer to assess their options, compare prices, and make better-informed decisions rather than making hasty purchases. “We expect this weekend-long approach to deal-hunting to intensify in 2024. South Africans are likely to spread their shopping even more strategically across multiple days, taking time to compare prices and make considered purchases rather than rushing into Friday-only sales.”
South Africans’ growing appetite for essential groceries and delivery services
Capitec expects South Africans to continue focusing on value-focused retailers in 2024, building on their 2023 behaviour. “Last year showed incredible growth in essential grocery shopping, highlighting how consumers are committed to meeting their core household needs. As this trend strengthens, we are seeing a shift in consumer priorities away from non-essential items towards ensuring their basic needs are adequately covered. Notably, the leaders by transaction volume and value were the grocery retailers, with over 1.8 million clients spending approximately R1200 per transaction at the Shoprite and Checkers brands. This was followed by spend on fuel and clothing.
The leading digital bank says South Africans will continue to opt for more convenience by relying on food delivery services like Mr D Food and Checkers Sixty60 – using technology as an essential part of household management.
More South Africans are shifting to cashless purchases
Capitec expects consumers to continue transitioning to digital payments this year, building on 2023’s impressive R25.8 billion in digital transactions. Cash withdrawals, which decreased by 3.5% to R6 billion in 2023, are predicted to decline as more consumers adopt digital payment solutions.
“The rapid adoption of digital payment methods isn’t just about convenience anymore. It’s becoming an essential tool for strategic shopping, allowing South Africans to track spending, compare prices, and make informed decisions in realtime. This is visible in the shift from cash to card payments, and the rapid growth of new digital payments like Capitec Pay, Apple Pay, Google Pay and our Pay Me QR codes.”
Supporting South Africans’ strategic Black Friday shopping
The leading digital bank says it will continue supporting South Africans’ preference for household essentials on Black Friday shopping through digital tools like Capitec Pay, Cashback offers, and banking app budgeting tools. “Our role extends beyond just facilitating transactions. We’re helping South Africans shop strategically with tools like realtime spending alerts to budgeting features that help clients maximise their savings during these key shopping periods.”
Viviers concludes, “South Africans are finding ways to adapt to challenging economic circumstances by being resourceful, looking for real value and making calculated financial decisions. This evolving approach reflects a long-term financial health focus rather than short-term gratification. Black Friday is no longer a day for indulgence – it’s becoming a strategic opportunity for South Africans to bolster their household finances, leverage deals for everyday needs, and maximise savings during tough times.”
