Kiwi retailers are hoping to cash in on Black Friday, but are consumers actually getting a better deal than any other time of the year? Photo / Paul Taylor.
Finding the best deals on Christmas presents is a tough job for many Kiwis, but is Black Friday the best time to shop?
According to PriceSpy’s Price Index, Black Friday remains the best time to get a bargain, with prices on average cheaper by 7% compared to any other time during the year.
Looking at the data on last year’s Black Friday sales, 44% of products went down in price, with a quarter of products dropping by more than 10%.
The average sliced off discounted products was 21%.
One interesting evolution of the sale is that it has extended beyond just November 29.
“Many retailers are now extending their sales into ‘Black Week’, with some even starting offers as early as Singles’ Day [November 11],” PriceSpy said.
“This shift towards a ‘Black Month’ means consumers can expect promotions to begin earlier, with significant discounts often stretching throughout November.”
However, just because many items are on sale doesn’t mean everything is. It turns out that 15% of products were actually more expensive on Black Friday last year compared to a regular day.
PriceSpy’s data showed that items in tech categories often receive the largest discounts.
On average, games and consoles last year were down 28%, keyboard and mouse prices were reduced by 24%, speakers dropped 24% and televisions fell 22%.
In 2023 the top 10 products were all tech-related and dominated by just four brands: Apple, Samsung, Sony, and Nintendo.
The most popular item last year was Sony’s PlayStation 5 console, which was notoriously hard to get at release during the pandemic.
Another category with large discounts last year was kitchen appliances, with items reduced on average by 20%.
PriceSpy encouraged shoppers to be aware of “fake deals”, where retailers raise prices before Black Friday to create the illusion of a larger discount.
According to their data, one in 10 offers fell into this category, so if there’s an item shoppers are particularly after they should keep track of its price before sales begin.
Mighty Ape chief executive Daniel Balasoglou said the business had a 32% increase in its subscription service over the last two weeks.
“Black Friday has been Mighty Ape’s biggest sale event of the year since 2015, and having observed a growing appetite for it, 2024 is set to continue the trend,” Balasoglou said.
“Since 2018, Black Friday sales volumes are now double what we do on Boxing Day.”
He said Mighty Ape’s Black Friday sale last year recorded a purchase every 3.5 seconds, with online sales driving growth as the day becomes the highlight of the retail calendar.
With the ongoing cost-of-living crisis hitting Kiwis’ back pockets, it could be suggested many would keep their wallets closed over this time.
But according to a survey of more than 1000 Kiwi consumers by PriceMe, it’s actually the opposite, with 51% planning to shop this year compared to 35% in 2023.
Almost a quarter of respondents to PriceMe’s research saved specifically for Black Friday, with 36% of those aged 18-24 having set money aside.
While inflationary pressures are easing and the government’s tax cuts should be reaching consumers, PriceMe said that many intend to rely on debt to make their purchases.
A quarter of respondents intended to use buy-now-pay-later (bnpl) schemes for Black Friday purchases, while 28% intended to use credit cards or overdrafts.
The highest proportion of respondents with this intention were those aged between 55-64 and 65-plus, with 41% expecting to do so.
Male respondents were both the most financially prepared group (29%) and the most likely to use bnpl schemes or credit cards (34%).
PriceMe chief executive Gavin Male said that consumers should be aware of the risks when taking on debt in the current economy.
“With inflation still high - although starting to drop - shoppers may still end up paying an inflated price even for discounted items this Black Friday,” Male said.
“It’s never worth getting into debt for non-essential purchases, so on Black Friday we’d recommend shoppers compare prices across multiple retailers to ensure they’re getting the best deal.”
As for why Kiwis want to shop this Black Friday, 73% of younger shoppers were more likely to treat themselves, while older shoppers were more likely to make practical purchases.
Along the gender divide, men had a higher intention to make purchases for themselves, while women had more plans to shop for Christmas gifts for others.
According to PriceMe, the average Kiwi intends to spend just over $600 this Black Friday.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.