How Retailers can Capitalise on Festive Season Sales

South African retailers are set for a positive festive season this year, with research commissioned by Capital Connect* indicating that Black Friday and festive season retail spending could increase 6.5% in nominal terms compared to 2023. Given that Black Friday and the festive season are expected to account for 21.9% of annual retail sales, this is the most important period in the retail calendar.

With inflation easing to 2.8% in October, its lowest level since June 2020, retailers have an opportunity to capitalise on improved consumer confidence and spending, says Steven Heilbron, CEO of Capital Connect, a fintech that offers fast and flexible unsecured business funding to retailers, and a member of the Connect Group. “To seize this moment, retailers are turning to fast financing and automated cash management solutions to maximise sales and efficiencies,” he adds.

“The green shoots we are seeing in the economy are creating a wealth of opportunities for innovative retailers over the festive season. Retailers that anticipate and drive demand with compelling offerings and exciting customer experiences will have an edge in a competitive market. It’s all about coming up with creative ideas and moving faster than the competition to execute.”

Driving festive season innovation

Heilbron shares some ideas about how retailers can make the best of the festive season:

• Pop-up stores: The flexibility of the pop-up store format is a great fit with seasonal trade. It lets retailers expand into new areas or position their business in high-traffic areas (public events, for example), with minimal risk and capital outlay.
• Destination shopping: Many South Africans make a day out of doing their festive season shopping. Adding a coffee shop, investing in attractive fittings and eye-catching displays, or product demos are all great ways to add value and attract foot traffic.

• Omnichannel commerce: Home deliveries, click-and-collect and ecommerce are good ways to expand a retailer’s presence and drive more sales. Now could be a good time to join a home delivery platform or set up an app or ecommerce store.

• New product and service lines: Adding new products and services to the mix can create opportunities to cross- and up-sell, or bring new foot traffic. A supermarket could add clothing to its product range, add white-label goods to its shelves, or offer tantalising deli products.
• Promotions and specials:  Now is a time to identify opportunities to bulk-buy goods at a discounted rate that will be in demand, so that you can attract customers with promos and special offers – and capitalising on additional profits.
• Automated cash management: Cash remains one of South Africa’s preferred payment methods and the amount of cash that retailers need to manage surges over the festive season. According to BankServ, the total value of cash orders processed through its Integrated Cash Management Service (ICMS) totalled R81 billion in December 2023. Automated cash management systems allow retailers to safely handle large cash volumes, reduce manual reconciliation errors, and save up to 40% in time and money.
• Intelligent retail ATM Recycler: An ATM Recycler serves as a 3-in-1 solution, including a robust cash vault, recycler and dispenser. It enables retailers to offer customers a value-added service in-store, cycle cash via their business to ensure less Cash-in-transit collections, and benefit from rebates on successful cash withdrawals. This is a good way to attract customers and keep their spending within a store.

Says Heilbron: “Fast, short-term financing tailored to retailers’ unique needs is the key to capitalising on these opportunities to grow your business. It enables you to move fast to take advantage of time-limited opportunities like making strategic bulk buys at time-limited prices.”

“Capital Connect offers frictionless retail business funding of up to R5 million, with funds in the retailer’s bank account in just 24 hours. You can apply for a smart loan by clicking and borrowing from an app, with minimal red tape and no need for audited financials. We offer repayment in small daily instalments to help you manage your cash flow.”

R81 billion in cash orders last December highlights the importance of cash management

Mark Templemore-Walters, Operations Director at Cash Connect, the automated cash management division of the Connect Group, adds: “Cash management may become a challenge over the festive season. Not only does the volume of cash flowing into a business increase, but the number of public holidays means banks are open on fewer days and there are fewer normal business days for cash-in-transit pickups.

“A robust cash management solution with an intelligent cash vault or smart ATM recycler, built to SABS Cat 4 standards, deters criminal activity and improves efficiency over this period. Automation of human touchpoints in counting, recons and banking is four times faster than a manual system, reduces shrinkage and back-office costs, and enhances cash flow. Once deposited in the vault, funds can reflect in your bank account instantly or on the same day.”

To learn more about retail strategies for 2025, don’t miss Digital Retal Africa 2025.

//Staff writer