The impact of Black Friday on December 2019 retail sales
During the last four years there were a lot of speculations regarding the real impact of Black Friday shopping on especially December trade. For a number of years, the trend indicated a steady December trade with increased trade in November.
According to the 2015 actual November sales figures, there was an increase from R79 billion to R100 billion in current prices. This represents a total increase of 8.2% per annum. December figures increased from R102 billion in 2015 to R119 billion in 2018, an increase in current prices of 5.3%.
Black Friday is where margins go to dieBlack Friday deals are a threat to the already squeezed margins experienced in South African retail at present, says Nashil Chotoki from Redefine Properties… 20 hours ago Based on all the above-mentioned comments and trends, the projections for sales figures for November 2019 indicate a good increase from R100 billion in 2018 to R108 billion in 2019, and a constant R119 billion figure for December 2018 and December 2019. The following two graphs further confirm an increase in November sales and a decrease in December sales in terms of the monthly contribution to total annual sales. This is also the main reason why many shopping centre owners are grouping their November and December sales together to get a real understanding of both Black Friday and Christmas shopping.
Shopping behaviour will change more to satisfying real needs where shopping is planned within a specific budget. This will be based on self-discipline. On the other hand, there is also negative behaviour where shoppers get into debt that will take time to pay off. The excitement regarding Black Friday in South Africa is still in the early stages. In a country, where the consumers will always be under pressure, there will always be bargain hunting amongst rich and poor. Article courtesy of SACSC. Source: bizcommunity.com
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