South Africa's retail frenzy: Black Friday index reveals explosive growth in 2024
Black Friday, by its very nature, generates hype in the media and among retailers. However, a new index proves it is not hollow hype.
South Africa's first formal Black Friday Index reveals that Black Friday to Cyber Monday remains the most powerful retail window of the year, according to World Wide Worx and Ecentric Payment Systems.
The index shows unequivocally that compared to the full holiday period from the beginning of November to Christmas Eve, Black Friday to Cyber Monday remains the clear peak shopping window, with significantly higher transaction and revenue growth than the rest of the season.
The Ecentric 2024 Black Friday Index, which was conducted in a partnership between Ecentric Payment Solutions and World Wide Worx, is based on analysis of data from retail transactions flowing through the Ecentric payment gateway.
Payment data analysed excludes that of the grocery sector. Ecentric processes 20% of South Africa's card transactions and serves as a trusted payments partner to 65% of JSE-listed retailers – serving their in-store, online, mobile and omnichannel payments requirements.
The index was compiled by independent technology research house World Wide Worx. It measures transaction volume and value generated from Black Friday to Cyber Monday, as a proportion of total holiday retail.
As a share of total holiday sales, online transactions for the Black Friday to Cyber Monday period, as a proportion of total transactions surged by 30.4%, rising from 7.9% to 10.3% of total holiday sales. Online revenue as a proportion climbed by 23.8%, increasing from 10.1% to 12.5% of total holiday revenue.
In-store transactions as a proportion of total transactions grew by 15.4%, rising from 9.1% to 10.5% of holiday sales. In-store revenue as a proportion of total revenue saw a 109.4% surge, doubling from 5.3% to 11.1% of total holiday revenue.
Rory Bosman, Ecentric's chief sales and marketing officer, says the findings are good news for retailers as they provide telling insights that can prepare retailers to make the most of the critical retail period.
'The index makes it clear that the Black Friday weekend stands out from the full holiday shopping period, which runs from the beginning of November to Christmas Eve, in both sales volume and growth. The latest data confirms that retailers who capitalised on this peak moment saw the biggest gains, with online and in-store revenue outperforming the rest of the holiday season,' he says.
Of particular interest, is how dramatically the holiday shopping period is shifting. While in 2023 the Black Friday to Cyber Monday period reflected a small upward bump in transaction volume, the biggest shopping days came a week later.
'This is different in 2024,' says Bosman.
'The Black Friday to Cyber Monday period saw a massive leap in transaction volume, compared to a slightly above-average level a week later.'
Key insights to capitalise on Black Friday in 2025 and beyond
Bosman says there are a number of important lessons for retailers. The first is that e-commerce is more important than ever.
'Retailers seeking to make the most of Black Friday need to prioritise seamless digital experiences and mobile optimisation and exclusive deals,' he says.
Importantly, the 2024 Black Friday index proved that in-store retail is enjoying a strong revival. Bosman says that the retailers who benefit the most will be those that invest in immersive experiences such as interactive shopping, festive atmospheres and high-value promotions to attract shoppers.
He says consumers demonstrated they respond well to positive in-store experiences. Technology such as augmented and virtual reality could play a pivotal role here.
Omnichannel integration is non-negotiable, he adds.
'The insights gained from the index tell us that online and in-store integration must be seamless, from inventory to promotions. The retailers that do the best are those that blend online and in-store efforts with consistent messaging, and, importantly, seamless experiences.'
Bosman says that data-driven personalisation holds immense potential for retailers seeking to set themselves apart from their competition. 'AI-powered recommendations and targeted deals will set leaders apart. It is vital, in 2025 and beyond, that retailers use data for targeted promotions and flexible fulfillment options.'
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