Would anyone notice if Black Friday stopped? It is an American tradition: the Friday after Thanksgiving is a major shopping day that marks the unofficial start of the holiday season, characterised by significant discounts and sales offered by retailers to boost profits.
Philadelphia police started calling the day “Black Friday” in the ’50s to describe the chaotic crowds after Thanksgiving.
Retailers later made it popular in the ’80s to refer to their yearend profits when accounts moved from being “in the red” to “in the black”.
Black Friday established in SA in 2012
Black Friday also became a South African institution in 2012 and since then local consumers looked forward to Black Friday all year.
Would anyone notice if we stopped the it? Experts agree that consumers, businesses and the economy would notice.
Roelof Botha, an economist, said everyone would notice if there was suddenly no more Black Friday.
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“The magnitude of the advertising benefits everyone, especially firms that specialise in branding. The event itself represents a brand that attracts much attention, which encourages and hastens consumption expenditure, which filters through to the supply-side of the economy.
“Sectors such as retail, banking, advertising, transport, telecoms and manufacturing will receive an extraordinary boost via Black Friday and Cyber Monday.”
Isana Cordier, managing executive for the consumer sector at Absa CIB, said many consumers plan purchases around Black Friday for affordability and value.
Planning around affordability and value
“Removing it would limit access to deals, especially for deferred big-ticket items.
“For consumers, this represents a rare opportunity to access affordable deals and manage budgets through flexible payment options like buy now, pay later, which have become integral to participation,” Cordier said.
“For businesses the fourth quarter is described as the “anchor of retail performance”.
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Black Friday drives volume clears inventory and influences pricing and inventory strategies for the year ahead. For businesses, It is a critical revenue driver and its loss would significantly affect retail turnover and profitability.
“For the economy, Black Friday and festive season spending boost retail turnover and stabilise annual performance. Without it, fourth quarter growth would flatten, affecting profitability and broader economic activity tied to trade.
“Black Friday stimulates seasonal retail activity, supports e-commerce growth and drives payment volumes, making it a cornerstone of fourth quarter performance ,” Cordier said.
Everyone miss Black Friday
Kruger said everyone would miss Black Friday.
“It has become a retail focus, although the focus is mostly a 50/50 split between November and December.
“An analysis of retail data shows that consumers once shifted spending from December to November, with the trend peaking in 2019, when November outperformed December.”
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