Black Friday warning ahead of busy shopping period

Shoppers are being urged to spend within their limits this Black Friday and look past the sales hype. Photo / 123rf

Westpac New Zealand is urging Kiwis to avoid a “spending hangover” this Black Friday, with shoppers set to splash out on specials ahead of the holiday season.

The average customer spent 33% more on debit and credit cards on Black Friday last year compared to an average Friday, according to Westpac data.

Sarah Hearn, Westpac NZ managing director of product, sustainability and marketing, said shoppers should have a budget in mind and carefully consider any spending decisions before diving in.

“It’s easy to get sucked into buying more than you need with Black Friday and Cyber Monday deals, based on what you perceive as a bargain,” Hearn said.

“Our data shows overspending at this time of year can have a knock-on effect, adding to holiday stress and meaning some of us will start the new year on the wrong foot financially.”

But Hearn said if shoppers stick to their spending limits, they can save themselves money compared to shopping at other times of the year.

“Top tips we’ve shared include: resist the pressure to buy more than you need; know your limits and stick to them; or spend with a friend who can talk you out of impulse buys,” she said.

Research from Consumer NZ shows Black Friday specials aren’t always what they seem.

“We’re already getting bombarded with flash sales, countdown timers, discounts and ‘hot deals’ in the frantic rush to Christmas,” Abby Damen, communications and campaigns adviser at Consumer NZ, said.

“Unfortunately, whether these opportunities to save money are legit or not requires a healthy dose of vigilance and a bit of scepticism.”

Damen said there are rules shops must follow when advertising sales.

“Sales must be genuine, limited opportunities to save. If they’re not, they risk misleading consumers – and that could be a breach of the Fair Trading Act,” she said.

Damen urged shoppers to look past the hype when buying items on sale.

“Just because it’s got a special sticker on it ... doesn’t mean that product you’ve got your eye on is on special,” she said.

“Make use of sites like PriceMe or PriceSpy to see how much the item usually sells for. You’ll quickly see whether that ‘half-price’ deal really stacks up.”

Westpac’s Hearn said shoppers should also be wary of fraudsters looking to take advantage of increased online spending during Black Friday and Cyber Monday sales.

“All our debt and credit cards come with dynamic security codes that change after 24 hours in the Westpac One app, limiting how long online fraudsters can use your card details if they’re stolen,” Hearn said.

“Our data shows customers are about 66% less likely to suffer card fraud if they use the dynamic security code, compared to using the static code on their physical card.”

Black Friday falls on November 28, with Cyber Monday on December 1.

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