Black Friday: Kiwis urged to spend wisely amid cost of living crisis

While Black Friday sales have already begun in many stores across Aotearoa, a recent report urges consumers to exercise caution during this shopping event.

PriceMe’s report reveals that many Kiwis plan to rely on Black Friday sales for essential purchases and holiday gifts, driven by rising cost of living pressures.

Cost of living and Pacific communities

PriceMe’s Chief Executive Officer, Gavin Male, says, “Fifty-five per cent of surveyed people said they’ve permanently changed how they manage money because it’s just hard. People are waiting for sales to buy the things they really need.”

Victoria Ongolea, a financial wellbeing advocate for Pacific communities, says the cost of living affects everyone, but for Pacific communities, managing life in New Zealand alongside traditional responsibilities to family back home creates additional financial strain.

"We value community and support, but without preparation, this can lead to financial stress or debt.

"We help with school fees, weddings, and funerals back home while paying our bills here. Balancing these two worlds is expensive, and financial hardships can arise if not managed carefully."

Gavin Male is the founder and CEO of NZ Compare. Photo/PriceMe/Lindsay Stanley.

Black Friday spending trends

PriceMe’s report shows that with 58 per cent of Kiwis concerned about their finances, there’s a growing trend towards price-conscious behaviours like reduced non-essential shopping and bargain-hunting.

The survey showed that 51 per cent of Kiwis would shop on Black Friday, with men likely to buy household items and women more likely to purchase gifts.

Younger shoppers tend to treat themselves, while older shoppers make practical purchases, the report revealed.

According to the report, the average Black Friday spending is projected to be $600, with men intending to spend more than women.

“Last year, Black Friday sales reached almost $350 million, slightly down from previous years as sales are spread out over the month,” Male said.

“This year, the average spend forecast is $600, with men spending $770 and women $460.”

"Make a list before Black Friday and stick to it. If you don’t need it, don’t buy it, even if it’s 30 per cent off," says Gavin Male. Photo/PMN News/Sariah Magaoa.

Pacific business perspective

Iconic fashion brand TAV Pacific, based in Auckland, held a Black Friday sale in 2022.

However, this year, they have chosen not to participate in Black Friday sales due to their commitment to sustainability and ethical production practices.

Since they do not hold large quantities of stock, running a Black Friday promotion was not feasible, according to TAV Pacific.

Instead, they will offer exclusive online sales from 25 November to 3 December, providing discounts for their customers during this period.

Meanwhile, the popular global leading Pacific Island watch brand, MATAI, based in Sydney, is actively engaging in Black Friday sales.

New Zealand is one of their key markets, co-founder Nick Williams says.

He emphasised the significant impact Black Friday has on their business revenue, highlighting the brand’s growing understanding of the importance of strategic planning for sales events.

MATAI Co-founder Nick William says, "this year, we were more prepared," for Black Friday. Photo/Facebook/MATAI.

"Black Friday makes up quite a bit of our company’s revenue for the year. Last year was about learning. This year, we were more prepared."

"You want to aim at about seven times your average weekly income during Black Friday… it’s a great opportunity for businesses."
While he recognises the benefits for business, Williams is also aware of how sales events can influence consumer spending trends.

"Spend to your needs ... what happens today may reflect on what happens tomorrow,” Williams said.

Buy now, pay later schemes

The report also showed that many shoppers would use ‘buy now, pay later’ options or credit cards to cover their purchases.

"Twenty-five per cent of people surveyed plan to use buy now, pay later schemes. It’s useful if you manage payments responsibly, but people must avoid getting into unnecessary debt,” Male said.

While it’s encouraging to see a decrease in unnecessary spending, Ongolea says that “online shopping and tools like buy now, pay later still drive expenses.”

Avoid debt on Black Friday

Male said planning and mindful spending for Black Friday, especially given the current financial pressures.

With a significant amount of spending forecasted, he urged shoppers to avoid impulsive purchases and to manage Buy Now, Pay Later schemes wisely.

"Make a list before Black Friday and stick to it. If you don’t need it, don’t buy it, even if it’s 30 per cent off. Ask yourself: Will I really use this?"

“Save some money for Boxing Day. It's still a big shopping day.”

Victoria Ongolea is a full-time PHD candidate at the University of Auckland's Business School. Photo/Victoria Ongolea.

Encouraging financial literacy

Ongolea echoed similar advice, focussing on thoughtful spending, balancing cultural and financial priorities and prioritising financial education for a sustainable future.

"Practice self-control. Just because something is on sale doesn’t mean you need it.

“Set a budget and stick to it. Save for what you truly need rather than getting into debt for today’s deal.

"If you have existing debts, focus on paying them off before incurring new ones.

“Delay gratification. Boxing Day is another sale event to consider, allowing you to save in advance instead of spending impulsively.

"Younger generations should understand the basics of debt, interest rates, credit scores, and financial goals.

“Knowing the difference between good debt, like a student loan or mortgage, and bad debt can prevent unnecessary financial hardship.

"Financial literacy equips us to navigate the system wisely, avoiding tools like buy now, pay later when they lead to problems."

Black Friday is on 29 November.