This Black Friday Weekend (25th - 28th November), retail sales are set to hit £8.71bn as consumers make use of bumper discounts to shop early for Christmas.
According to a new report published by VoucherCodes.co.uk, "Shopping for Christmas 2022: Black Friday Weekend", a 0.8 per cent YoY increase in retail spend over Black Friday Weekend, from £8.64bn in 2021, is forecast. With several retailers set to extend their Black Friday promotions to a two-week period, the report says shoppers will spend a total of £22.62bn across Black Friday Fortnight (22nd November - 5th December), a 2.1 per cent (£463m) increase on the same period in 2021.
Amidst experts forecasting a three per cent dip in consumer spending this Christmas due to the cost-of-living crisis, the report credits this rise in spend to consumers taking advantage of the deals and discounts on offer over the Black Friday period to stock up on Christmas essentials. As a result of the cost-of-living crisis, consumers are also set to begin Christmas shopping earlier to spread the cost of Christmas, spending more than in previous years during the Black Friday period.
Despite the strain on many consumers' budgets, two-fifths of consumers still say they are likely to make a purchase over the Black Friday Weekend (39 per cent), and 16 per cent say they are very likely to purchase. A further two-fifths say they are likely to spend more this year than last year (41 per cent).
Retailers of clothing and footwear are the most likely to see a Black Friday sales boost, as this category is poised to be the most popular, with half of Black Friday shoppers set to make a purchase (47 per cent). Big ticket items such as electricals are also set to be popular (44 per cent), as will popular gifting categories such as toys (37 per cent), health and beauty (32 per cent), and games, music and film (24 per cent).
The World Cup and Black Friday
Looking at each day of the Black Friday Weekend individually, Cyber Monday is set to be the most lucrative day for retailers, generating £3.17bn, a rise of 0.3 per cent year-on-year (YoY). However, sales on Black Friday itself are expected to fall by -5.8 per cent to £3.01bn from £3.20bn last year.
With Black Friday taking place on the same day as England’s match against the USA in the FIFA World Cup, it’s expected that many consumers will be tuning into the match from 7pm instead of shopping. As a result, this spend is set to shift to the Saturday and Sunday with expected sales of £2.53bn – a rise of 10.4 per cent YoY.
Online v Offline this Black Friday Weekend
This year’s Black Friday Weekend is the first year since 2019 without any Covid restrictions or fears over rising Covid cases. As a result, many consumers will return to bricks-and-mortar stores to shop in-person this Black Friday Weekend. Due to this shift, offline sales are forecast to rise by a huge 21.1 per cent YoY from £3.22bn in 2021 to £3.9bn in 2022. However, with the rise in offline spend comes a decline in online spend from £5.42bn to £4.8bn – a drop of 11.2 per cent.
“With Christmas sales expected to fall by three per cent on last year, Black Friday is an important opportunity for retailers to provide their customers with the much-needed value during an incredibly difficult period, especially on must have items for food & drink and gifts for loved ones," said Maureen McDonagh, SVP International and Managing Director at VoucherCodes.co.uk.
“Black Friday is incredibly busy for discounting so retailers need to consider how their offers stand out and are relevant to maximise sales. With less disposable income available, additional customer initiatives such as rewards, loyalty and flexible delivery options can be the deciding factor between a customer choosing between two competitor brands.”
