The amount of shoppers seeking discounts on Black Friday showed a decrease compared to last year, according to experts. Data tracking foot traffic indicated a 3.3% decline year-on-year by 5 pm on Friday across various shopping locations. This drop was attributed to the financial strain on consumers affecting overall shopping activity, as highlighted by analysts at MRI Software.
Despite the decrease in physical store visits, online retailers are expected to experience a substantial surge of nearly £3.4 billion on Cyber Monday. Some online sellers might delay their promotions until after the weekend to capitalize on this expected increase in online shopping.
Detailed analysis revealed that both high streets and shopping centers saw a 4.3% decline in Black Friday footfall compared to the previous year. However, out-of-town retail parks saw a slight increase in shopper numbers. MRI noted that the merging of Black Friday with the final payday for many consumers could lead to a prosperous weekend for retail.
Comparing foot traffic to the previous Friday, an 11% increase was observed, indicating positive week-on-week trends and reinforcing Black Friday as the start of the holiday shopping season. Experts are closely monitoring these trends, recognizing the significance of Black Friday in the retail sector during the crucial ‘golden quarter’ leading up to Christmas.
With concerns over the impact of the recent Budget and its timing on retail sales, experts are eager to see if consumers will increase spending now that the Budget is behind them. Retail analyst Richard Hyman expressed concerns about household budgets under pressure, affecting discretionary spending.
Predictions suggest that shoppers will spend £3.38 billion on Cyber Monday, slightly surpassing Black Friday figures and showing a 1.7% increase from last year. Overall spending during the Black Friday period is expected to rise by 1.5% this year to £6.4 billion, according to PwC UK.
Several retailers are extending their online deals into Cyber Monday, offering significant discounts. Beauty retailer Superdrug, for instance, is providing discounts of up to 73% on various products and offering reward points for online purchases over a certain amount.
Research by Barclays revealed that a quarter of consumers have been saving specifically for Black Friday and Christmas shopping. However, the study also found that enthusiasm for seasonal sales is waning, with many expressing doubts about the true value of Black Friday and Cyber Monday deals and their impact on unnecessary spending.