Home Retail Black Friday may lose its sparkle as football and inflation hit online sales | Retail industry

Black Friday may lose its sparkle as football and inflation hit online sales | Retail industry

by Ozva Admin

Words black Friday I used to conjure up images of frantic shoppers rushing to stores and online stores to snag as many bargains as possible. This year is likely to be a more subdued affair, as spending on non-essentials is expected to fall amid cost-of-living pressures and distractions from the men’s soccer World Cup.

Brits are forecast to spend £22.62bn over the two-week period of Black Friday, which runs from November 22 to December 5. That’s an increase of 2.1% year-over-year, but once inflation is factored in, it actually means they’ll put fewer items in their baskets, according to GlobalData research for Vouchercodes. This is a marked slowdown for the US-inspired discount day, which has gradually turned into an online event. There have been few queues outside shops in the UK since early exuberance led to fights in some stores in 2014.

A wet Black Friday squib could add to the pressure on retailers, who may have hoped the event could generate excitement and tempt shoppers looking for ways to cut back on their holiday celebration spending. Poor sales will only add to the annual chicken game, in which shoppers wait in hopes of better deals around Christmas, as retailers become more desperate to clear out stocks.

Enthusiasm for the event will also be affected by football fever. On Black Friday night, instead of shopping, large numbers of people will be tuning in to England’s second game, against the USA, dealing a heavy blow to the evening’s valuable sales.

However, some people may return to retail in the days that follow, and the trend away from nights out, noted by many supermarkets and hospitality businesses, could mean bored homeowners have more time to hunt for good deals on line.

However, growing skepticism about the deals on offer likely means the days of crazed clicking may be over. Consumer group Which one? it goes on to warn that “most advertised ‘deals’ should be taken with a grain of salt.”

Technology, traditionally a winner on Black Friday, will also be less sought after this year, as many families have spent money on larger TVs, laptops and game consoles for entertainment and work purposes while stuck at home during pandemic shutdowns.

A shift back to physical shopping after two years of high street closures may also slow down the largely online event. Many retailers launched their Black Friday discounts early, suggesting they have stock to clear after disappointing initial sales.

A period of relatively warm fall weather has only added to the pain for clothing retailers. Expensive winter coats and knitwear, which traditionally boost fashion sales at this time of year, are proving less appealing in the kind of balmy temperatures much of the UK has enjoyed in the past two months. Online retailers expect Black Friday sales to fall for the second year in a row, by 5% according to trade body IMRG and analysts at Capgemini, with clothing seeing the biggest drops.

Concerns about deliveries, with blows on the cards by Royal Mail which lasts until Christmas Eve, may persuade many that a trip into the city is a safer bet. Many of those with less to spend are also switching to cash instead of cards to stay in control of their budgets, making high street shops a more attractive option.

The decline is likely to put further pressure on digital businesses already battling falling demand and rising costs, particularly in handling deliveries and returns as fuel, energy and labor costs soar. construction site.

“It is well documented that things are very difficult right now. If the situation deteriorates further, it will really be cause for alarm,” says Andy Mulcahy, IMRG’s director of strategy and information.

With a number of businesses already on the brink, fears of a bad end to the year, when most retailers turn their profits, could lead already nervous lenders and suppliers to reclaim their debts, tarnishing the sector for the supposed festive season.

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