The countdown of months, weeks and days has now turned into hours.
Many are on their marks and it’s all set as they are ready to go with their trolleys this Black Friday.
The time to have those savings handy for that one thing or maybe a couple of things you’ve wanted this whole year is finally here.
On 25 November 2023, retail stores and major brand across the country will be having bargain sales, offering discounts that very few people to none want to miss out on.
During last year’s Black Friday weekend, online purchases by Standard Bank customers increased by almost 19% when compared to 2021, which itself recorded a year-on-year growth rate of 15%.
There was also a 20% increase in the number of transactions processed over the weekend, which amassed to 8.6 million.
“In the face of a challenging economic climate, Black Friday is an opportunity for South Africans to effectively utilise their savings for big purchases they may have been anticipating since the start of the year. Whether it’s for essentials or luxury items, this retail event has evolved and matured over time to become an important highpoint in the retail calendar,” says Tumelo Ramugondo, head of credit card [division] at Standard Bank.
However, while we can all get excited for Black Friday, that doesn’t mean consumers should throw caution to the wind when it comes to their financial health and safety.
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Here’s five things to keep in mind during Black Friday and Cyber Monday 2023.
Decide on your budget and stick to it
The perfect Black Friday experience is one where you come out the other side without your monthly budget looking lopsided. Ideally, your budget for the weekend should be the result of consistent saving and healthy financial habits, leading to you having a sizable amount to spend on your shopping list.
Don’t be afraid to not have a completed list going into the month of November. Many local trailers start their promotions earlier or run entire month-long promotions, to entice shoppers, which means you have plenty of time to make hard decisions and work out what purchases matter to you the most.
Look for the best deals and compare
Many retailers will offer the same products at marginally different prices. But, when it comes to finance, every little bit counts. That’s why when shopping, shoppers should look for the best deal on products they want to buy, as well as compare prices between retailers.
Shoppers can also use one of several price-checking websites to help them keep track of the best deals, so there’s no need to rush between shops and down different aisles checking the price tag on each item.
Spend credit responsibly
Credit is very useful if you want to purchase more expensive items during Black Friday sales, or if you don’t want to use your savings for a specific item. However, South Africa’s increased interest rates have raised the cost of borrowing. As a result, shoppers should remain aware of their card limits and how much they’re buying on credit.
One of the best ways to avoid paying interest on the money you've spent on your credit card this Black Friday is by taking advantage of the 55-day interest-free period offered by most lenders like Standard Bank. This means that you won't be charged interest on your outstanding balance provided you pay the closing balance in full within 55 days.
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Shop online at trustworthy stores
Online retail is big business in South Africa. In 2022, the sector grew by 35% to reach a total value of R55 billion, with online sales being boosted by Black Friday and a shift by consumers in retail behaviour from physical stores to online stores and apps.
But, as exciting as it is to hunt for the biggest deals during Black Friday, South Africans need to exercise caution when shopping online as they can be targets for cybercriminals. According to a TransUnion survey, 41% of local consumers who were aware of being targeted with digital fraud said it came from money or gift card scams, while 25% said it came from phishing attempts.
Remember, if the deals are too good to be true, then they probably are. Always shop from credible and trustworthy online stores and apps, and, when registering a profile, use a strong password and never save your bank card details on the website.
Transact securely
Second to practising vigilance when shopping online is making sure your payment transactions are secure. For example, when making a purchase on an app, make use of authentication methods such as biometrics (e.g. fingerprint scanning) that offer a high level of security.
Another way to transact online safely is to go fully digital using virtual cards. Virtual cards are safer than physical bank cards as they can’t be stolen, cloned, or skimmed. They also don’t link personal or account data and, when activated, each one has a unique card number, CCV number, and expiry date.
“Virtual cards are a sign of changing times when it comes to banking. South Africans are starting to leverage the full potential of digital technologies to yield a secure and convenient shopping experience, and one that lets them fully enjoy all that Black Friday has to offer,” Ramugondo concludes.
