Photo: 123RF
Over half of New Zealanders are expected to take part in Black Friday sales this year, with many reporting they will rely on the sale to replace much needed items at home or afford Christmas gifts.
According to a survey by PriceMe, the number of people planning to shop on Black Friday this year has jumped to 51 percent, compared to 35 percent in 2023.
PriceMe founder Gavin Male said consumers were clearly feeling the pinch of prolonged inflation and continued cost of living pressures.
Forty-eight percent reported they were relying on the Black Friday sales to buy or replace much needed items for the home, and 51 percent said they were relying on the sales to afford Christmas gifts.
But 50 percent also planned to buy treats for themselves on Black Friday. In the 18-24 age bracket that went up to 72 percent.
The average New Zealander was expected to spend this Friday around $600. Men ($770) were expected to spend more than women ($460).
The most popular purchases categories are expected to be technology and electronics (38 percent), fashion and clothing (35 percent), and household appliances (25 percent).
"Particularly this year with rising living costs, I think Black Friday has become a bit of a lifeline for Kiwis looking to save on those essentials. and also to reduce the cost around sort of Christmas and holiday shopping," Male said.
Retail NZ chief executive Carolyn Young has also observed the growth in Black Friday.
"In the current economic climate, where it's a really challenging trading environment and consumer confidence is quite low, everyone's looking for a bargain," she said.
Young said in many ways the Black Friday sales were starting the Christmas shopping period earlier.
"We're not necessarily seeing a significant increase in the total sales over the four or five week run into Christmas, it's just spread out over a longer period of time."
But she said sales days like Black Friday also posed a challenge for smaller businesses who weren't able to offer those discounts.
People taking on debt for bargain buys
PriceMe also found many would be taking on extra debt to pay for their Black Friday purchases.
Twenty-five percent of those surveyed said they planned to use Buy Now Pay Later services and 28 percent plan to use a credit card or their overdraft. Just over a fifth, 22 percent, have saved up money specifically for Black Friday.
"It's never worth getting into debt for non-essential purchases," Male said.
FinCap senior policy advisor Jake Lilley cautioned people to check what their options were before turning to finance methods like buy now pay later.
He said if people were using credit or buy now pay later they should ensure that the payments were affordable.
Lilley said only having one purchase at a time to pay off also made it easier for people to keep on top of their payments.
Prices may still be inflated
Male said with inflation still high, shoppers may still end up paying an inflated price even for discounted items this Black Friday.
"We'd recommend shoppers compare prices across multiple retailers to ensure they're getting the best deal."
He also recommended checking a product's price trend to ensure it really was at the best price.
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