The festive shopping season kicked off this year with Black Friday, showing a surge in online customers placing immense pressure on retail systems.
Reports indicate that at least four major South African banks experienced notable growth in Black Friday activity this year. Standard Bank, the nation’s largest bank, reported that transaction volumes rose by 10,81% compared to last year, with transaction values increasing by 4,41%.
“Black Friday has become a critical economic driver in South Africa, with billions flowing through the retail sector over a short period,” says Kamil Hurriparsad, cloud network lead at Cisco. “For retailers, the challenge was not just meeting this demand but doing so with systems capable of maintaining resilience, efficiency, and security during such a high-stakes period” he adds.
While the spotlight was on sales and promotions, cloud networking quietly enabled many retailers to rise to the occasion, providing critical support to manage these peaks effectively. These same strategies are poised to help businesses tackle future seasonal shopping surges and position themselves for sustained success.
Hurriparsad highlights four key lessons from Black Friday that showcase the role of cloud networking and demonstrate how these practices can set retailers up for long-term growth:
- Scaling up to meet demand: During Black Friday, retail systems face intense pressure, from website traffic surges to in-store networks reaching capacity. Payment systems, too, are pushed to their limits by overwhelming demand. Cloud-based architectures address these challenges with real-time scalability, enabling businesses to adapt seamlessly without compromising customer experiences. By adjusting capacity in real time, cloud networking ensures uninterrupted service during critical moments. This helps maintain smooth transactions, minimise downtime, and enables retailers to meet customer expectations during the busiest shopping periods.
- Personalising Shopping Experiences: Shoppers now expect personalised experiences, and seasonal shopping amplifies these expectations. By leveraging data from cloud solutions, retailers can offer tailored promotions and recommendations. Customers aren’t just seeking deals – they want experiences that align with their shopping goals. Cloud-powered tools allow retailers to provide real-time stock updates and customised offers, boosting engagement and fostering trust. For example, shoppers might receive a notification about a deal on an item they’ve previously browsed or see updated stock availability on a store app, encouraging purchases and enhancing the overall shopping experience.
- Optimising Supply Chains: Retail success hinges on a well-coordinated supply chain. Real-time cloud insights enable retailers to anticipate demand, optimise stock levels, and streamline deliveries, ensuring products are available when and where they’re needed. This precision prevents overstocking, reduces delays, and supports operational efficiency – a critical complement to customer-facing efforts.
- Reducing Cybersecurity Risks: The surge in online activity during Black Friday increases the risk of cyberattacks, making data protection and system security a top priority for retailers. Security cannot be an afterthought, especially during peak periods when the risk of breaches intensifies. A cloud network-based architecture integrates real-time threat detection and encryption, safeguarding sensitive information and maintaining customer trust.
The use of cloud-based solutions isn’t just about surviving peak periods like Black Friday; it equips retailers for sustained growth. “Retail is evolving rapidly, and this type of flexible and scalable architecture empowers businesses to innovate and succeed year-round,” explains Hurriparsad.