Black Friday shows a shift in consumer habits in Egypt

Egypt's e-commerce sector is on a remarkable growth trajectory, with the Black Friday season acting as a pivotal moment for the industry. Amid soaring inflation and economic pressures, online shopping has become an increasingly attractive option for consumers, offering a blend of convenience and affordability.

While e-commerce platforms are reshaping the retail landscape, the balance between traditional stores and online solutions remains central to understanding this transformation.

Inflation, which hit 26.5% in October, continues to strain household budgets, prompting a growing number of Egyptians to turn to online shopping as a cost-effective alternative. Platforms like Jumia and Noon have emerged as key players, drawing consumers with competitive pricing and extensive promotional campaigns.

“Online shopping has become an indispensable choice for Egyptian consumers,” Jumia Egypt CEO Abdellatif Olama said to Al-Ahram. He emphasized how inflation has accelerated the adoption of e-commerce, with many shoppers seeking better value through online platforms.

This trend is reshaping consumer habits, making digital platforms not just an option but a necessity in navigating Egypt's challenging economic landscape.

The youth demographic has been a major driver of this shift. Young, tech-savvy Egyptians, particularly those in urban centers like Cairo and Alexandria, are leveraging e-commerce for its efficiency and savings.

“Young consumers today are more inclined to shop online because it saves time and allows them to take advantage of exclusive offers and discounts,” Olama told Al-Ahram.

Sherif Abdel-Moneim, secretary of the Household Goods Division at the Cairo Chamber of Commerce, noted that younger shoppers are highly informed and adept at identifying genuine online deals. “Today, consumers are more aware of available deals, especially the younger generation, who have become adept at identifying and taking advantage of online discounts,” Abdel-Moneim said to Al-Ahram.

Black Friday promotions have transformed November into a retail highlight, traditionally a slow sales month. The event has become a cornerstone for boosting e-commerce activity, with significant discounts drawing both businesses and consumers to online platforms.

Abdel-Moneim highlighted to Al-Ahram that Black Friday offers have been instrumental in reviving retail activity during an otherwise quiet month. “The Black Friday offers have played a significant role in stimulating the market during a time when sales would typically be lower,” he said.

Olama also emphasized the broader implications of the event, telling Al-Ahram that it reflects a growing reliance on e-commerce within Egypt’s retail ecosystem.

Despite its growth, e-commerce is not replacing traditional retail. Both sectors coexist, with online platforms providing a cost-effective complement to physical stores. Abdel-Moneim pointed out to Al-Ahram that e-commerce platforms enjoy cost advantages, such as lower overheads, enabling them to offer more competitive prices.

However, he noted that traditional stores still have unique strengths, such as product variety and the ability to physically inspect items. “E-commerce should be seen as a complement to traditional markets, not a replacement,” Abdel-Moneim told Al-Ahram.

Olama agreed, adding that the integration of both models is essential for a balanced retail sector.

While e-commerce provides traders with expanded reach, Abdel-Moneim expressed concerns about the lack of support from commercial chambers. He explained to Al-Ahram that while some initiatives have been launched, more consistent efforts are needed to empower traders to compete in a digital-first market.

On the other hand, Olama pointed out that e-commerce platforms offer an effective way for businesses to navigate economic challenges. “E-commerce is a powerful tool for traders, providing them with the opportunity to connect with a diverse audience across Egypt and overcome the barriers posed by the current economic climate,” he told Al-Ahram.

As inflation and economic uncertainty persist, Egypt's e-commerce sector is expected to continue its upward trajectory. By appealing to cost-conscious consumers and leveraging technological advancements, e-commerce platforms are not only transforming retail but also providing a vital tool for navigating economic challenges.

The integration of digital and traditional retail models, combined with transparent and value-driven promotions, will determine the future of Egypt’s retail landscape. As Olama noted to Al-Ahram, “E-commerce is more than just a sales channel; it’s a survival mechanism for businesses during these challenging times.”