Every November, South Africa gears up for the biggest shopping spree of the year. What began as a post-Thanksgiving sales frenzy in the US has morphed into a retail marathon for South Africans, with deals and offers being churned out throughout the month.
Usually, big brands, with their marketing prowess and deep pockets, have dominated the spotlight, while smaller, independent retailers stand on the sidelines, wishing for a bit of the action. However, things are changing this year, with smaller retailers capitalising on their unfair advantages.
Being small can be a superpower, allowing small and medium enterprises (SMEs) to stay agile, offer personal service, and build community trust, which are qualities no algorithm or billboard can replicate.
The good news is that cautious optimism is creeping back into South Africa’s retail landscape, with consumer confidence, while still in negative territory, improving from a low of -20 early in 2025 to around -13 midyear.
Nearly 60% of small business owners in the latest SME Confidence Index say they feel optimistic about the next few months, which all points to a fantastic retail year end.
A make-or-break month for SMEs
For many SMEs, November is a make-or-break month, the last real chance to turn a profit before the annual slowdown. Miss the wave, and you could be funding your business from your own wallet until January, but ride it right, and you can finish strong.
According to the 2024 Black Friday Index from Eccentric and World Wide Worx, sales between Black Friday and Cyber Monday jumped 30% last year, generating about R88bn in revenue across wholesale, retail, and fuel sectors.
Mobile phone purchases now account for two-thirds of all online transactions, which proves that the opportunity is no longer limited to malls and department stores.
There has recently been a key shift in the way shoppers are rethinking what value really means. They may be tightening their belts, but they are also thinking differently, basing their spending not just on price but on purpose.
Buying locally, as opposed to buying on Shein and Temu, feels good and does good too, keeping money circulating in our economy and supporting the hard-working entrepreneurs in our own communities.
Cash still rules in townships
Of course, cash-flow pressures remain a daily reality for most SMEs, alongside limited stock and lean marketing budgets. Competing purely on price has become a losing game.
A new Standard Bank report reveals that eight out of 10 township traders are still unregistered, cutting them off from affordable credit and formal growth channels, right when pre–Black Friday cash flow matters most.
The report also highlights that cash still dominates transactions, with many traders unable to afford card payment systems.
In this environment, the smarter strategy is to compete on connection, service, trust and story. Increasingly, customers want to know where their money goes and who benefits when they spend it.
Innovation reshapes township retail
Innovation is also helping local retailers stay competitive.
Take Smartfill, a South African-designed grocery refill system that is changing how township consumers shop. Installed in spaza shops in areas such as Tembisa, Smartfill dispensers let customers buy essential goods in smaller quantities, often up to 50% cheaper than supermarket prices, while cutting packaging waste.
Similarly, Skubu, a partnership between the Department of Science and Innovation, the Council for Scientific and Industrial Research and local tech firm Sonke, has launched automated refill stations in Diepsloot for everyday items like maize meal and detergent.
These home-grown solutions combine affordability with sustainability, giving small retailers a fighting chance.
The key to success this shopping season is for SMEs to seize this moment and play to their strengths rather than mimic big brands. Authenticity sells. A well-timed WhatsApp message, a TikTok demo, or an early teaser of curated deals can reach audiences far more personally than generic 50%-off adverts.
If South Africa truly wants a more balanced retail ecosystem, policymakers and funders should step up too. Support for SME logistics, marketing and digital infrastructure would help level the playing field. Black Friday doesn’t have to be a one-horse race. It can be a fantastic opportunity for inclusive growth.
It may have started as a battle of discounts, but this year, Black Friday is shaping up to be a battle of authenticity. If local retailers play their cards right, they might be the ones laughing all the way to the till.
• Mtwentwe AGA(SA) is MD of Vantage Advisory and host of the SAICABIZ Impact Podcast cards
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