South Africa: Black November Sales Reveal Most Consumers Are Struggling

Big-screen TVs and other luxuries seem to be a thing of the past for most South Africans, who strategised their shopping and chose to spend their hard-earned money on necessities instead.

One person dropped R3.3-million on a single transaction, but for most ordinary consumers Black Friday was a less expensive affair, with purchase values down on last year. There was also far less of an appetite for luxury goods.

PayFlex said purchases on its payment platform averaged R1,364 (R300 less than last year). Absa, through which most of South Africa's top-tier retailers process payments, saw a decline in average purchase value from R580 to R523. FNB said the number of transactions made on its cards remained steady year on year, but transactions were 9.7% higher on the Saturday and Sunday than last year. Standard Bank, however, saw volumes up by 8% and values by 4%.

Tshipi Alexander, Absa's head of consumer cards, said the bank had noticed a slight decrease in the average transaction value over the past two years.

"The consumer is certainly seeing some pressure. They are taking advantage of the good deals that are out there. We saw a big rise in groceries and clothing, which suggests customers are looking for value in basic goods, not the large purchases of the past."

Absa had expected to see a drop in sales but that didn't happen: with payday for...

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