Data has revealed that South Africans, battling the cost-of-living crisis will be bargain hunting this Black Friday to ensure they are able to put more food on the table.
This comes as Debt Rescue released the results from their latest survey, which reflected the dire situation of South Africans right now, with a staggering 83% of consumers saying they will be hunting for Black Friday deals to put more food on the table this year.
The survey results showed that, although a significant 66% of people intend to participate in Black Friday despite their economic challenges, they will be spending far less than they did in 2023, and mostly on household necessities like food, toiletries, clothing, electronics and other tech items.
The survey polled participants between the ages of 25 and 65 to gauge consumer spending patterns, and overall sentiment toward the value of Black Friday promotions.
CEO of Debt Rescue, Neil Roets said the survey insights suggest that consumers are tightening their purse strings even further this year and will spend purely as a means to save money in the long run.
“2024 has been another tumultuous year and people are hanging on by a very thin thread. Black Friday is being viewed as a means to provide them with short-term aid to save on items they need and to free up a little cash at the same time,” Roets said.
“For far too long, ordinary South Africans have been carrying the financial burden of the highest interest rates the country has experienced in over a decade, along with relentless cost-of-living increases that include ever-escalating food and electricity prices, and petrol prices that remain unreasonably high - despite the miniscule cuts in recent months. This is being exacerbated by a rapidly escalating water scarcity crisis, which will inevitably lead to a spike in water prices,” Roets further said.
According to the latest data from the Central Energy Fund (CEF,) all fuel types, barring 93LRP, are now showing an under-recovery in pricing, and this does not bode well for motorists nor commuters, with a petrol price increase now anticipated as we head into the festive season.
Food costs remain a critical concern for most South Africans, a national food and nutrition survey showed that nearly two-thirds (63.5%) of households currently struggle to access adequate food.
The latest Household Affordability Index released by the Pietermaritzburg Economic Justice and Dignity (PMBEJD) reflected another hike in the average cost of the Household Food Basket, showing a 1,8% increase (R92,97) - from R5 255,68 in September 2024 to R5 348,65 in October 2024.
The report noted that, while 14 of the 44 tracked food items became cheaper year-on-year, 30 saw price increases, with eight experiencing double-digit inflation.
Three of these products saw price hikes of over 20%, reflecting ongoing pressures on certain food categories.
The PMEJD figures for electricity and transport, alongside the average cost for a minimum nutritional basket of food for a family of four, showed electricity and transport taking up 56,8% of the average worker’s wage (R2 882,97/R5 074,72).
This means that, according to the PMBEJD calculations, working households will underspend on food by a minimum of 41,6% (having R2 191,75 left over after transport and electricity).
With food costing a minimum of R3 750,75 to feed a household, this scenario clearly shows that there is no possibility of a worker being able to afford enough nutritious food for his or her family.
This, while consumer price inflation (CPI) has seen a sharp drop in October, according to the latest data from Statistics South Africa (Stats SA), which shows a decline to 2.8% in October 2024, down from 3.8% recorded in September 2024.
This marked the lowest inflation rate since June 2020.
“At the risk of sounding like a broken record, it is deeply concerning that there is not enough intervention from the major food retailers nor the country’s leaders to provide any real financial relief for South Africans – especially now with citizens bravely sprinting toward the end of the year in the hope of enjoying some kind of festive cheer. Sadly, the reality is that, for most, this means getting into even more debt, and starting the new year with an even greater financial deficit,” Roets warned.
To reiterate, this is the time of year when consumers are bombarded with relentless Black Friday advertising, making it difficult to resist impulsive purchases. “My advice is to buy only what you genuinely need and to ignore the overwhelming pressure of clever marketing tactics,” Roets said.
“It is tempting to whip out a store or credit card when caught up in the moment – only to regret it later. My advice to those who find themselves in a debt trap is to seek help through debt review, where a registered debt counsellor can assist you to manage your financial predicament. It is never too early to ask for help,” Roets further added.
BUSINESS REPORT