Black Friday to be Slammed with Cash-Strapped Consumers Ready to Splurge
A sudden jolt of good news for struggling retailers, as the average take-home pay in South Africa has hit a record high, just in time for the annual Black Friday shopping frenzy. This year, the downtrodden consumer has finally getting back some spending power, thanks to a perfect storm of declining inflation, plummeting fuel prices, and record-low interest rates.
According to the latest figures from BankservAfrica, the average take-home pay in South Africa has reached a whopping R17,171 in September, the highest level since the series began. And, in real terms, salaries adjusted for inflation have rocketed by a staggering 5.6% year on year.
"The economic gods have finally smiled upon the cash-strapped consumer," says Elize Kruger, an independent economist. "With confidence boosting, and the silent treatment of load shedding, the saving grace of politics, and a rate cut for the first time in over three years, the dam has burst – and the consumer is ready to party."
The numbers are even more impressive when broken down by sector. Transport and finance, for instance, saw a whopping 7% and 6.6% increase in average salary in the first half of 2024, respectively. This, combined with the anticipated spending power of the consumer, is set to fuel a Black Friday shopping extravaganza like no other.
"This is the perfect storm of economic growth, and the cash-strapped consumer is ready to unleash its fury on the shelves," says Kruger. "The Black Friday sales are going to be a bloodbath, with consumers slashing through the aisles to snap up the latest deals and discounts."
But don’t just take her word for it. The data is clear: the average nominal take-home pay is set to rise by a whopping 6.3% this year, while real take-home pay has increased by a dizzying 2.2% in the first nine months of 2024.
And, in case you’re still on the fence, a quick glance at online shopping habits suggests the average South African is more eager than ever to part with their hard-earned cash. Online shopping sales are expected to skyrocket, with Black Friday set to be the icing on the cake.
So, grab your credit card, and get ready to freak out – Black Friday is about to get a whole lot wilder.
