Even though it’s tempting to dismiss Black Friday as just another marketing gimmick, the reality is that it signifies the start of a month-long consumer spending frenzy that significantly boosts retail revenues.
This is according to research released by SME funder Retail Capital, which shows the impact that it has across several sectors of the local market.
Card turnover a week before Black Friday is 10% less than the average spend for the seven-week period around Black Friday. On Black Friday it jumps to 33% more than the average and a week later it’s still 14% higher.
“These statistics reflect how local consumers have embraced the concept and want to get the most value for their money. It also indicates that the period following Black Friday and Cyber Monday are vital (for retailers) to capitalise on the momentum these days bring,” said Karl Westvig, CEO of Retail Capital.
The same holds true in the fast-moving consumer goods sector, which is up by an average of 99% before Black Friday, 132% on Black Friday and 119% after Black Friday.