Black Friday may lose its luster as football and inflation hit online sales | Retail sector

the words Black Friday Used to conjure up images of frenzied shoppers racing to stores and their computers to get as many deals as possible. This year is likely to be more muted, as spending on essentials is expected to decline amid cost-of-living pressures and distractions from the FIFA World Cup.

Britons are expected to spend £22.62 billion over the two-week Black Friday period, which runs from November 22 to December 5. That’s a 2.1% year-over-year increase, but once inflation is factored in, it actually means they’ll put fewer items in their baskets, according to research by GlobalData for Vouchercodes. This is a noticeable slowdown in the US-inspired discount day, which is gradually becoming an online event. There have been a few queues outside uk stores since the early glut led to quarrels in 2014.

The breach of Wet Black Friday could add pressure to retailers, who may have been hoping the event would generate excitement and entice shoppers looking for ways to cut back on their Christmas celebration spending. Weak sales will only add to the annual game of chicken, as shoppers disembark hoping for better deals as Christmas approaches as retailers become more desperate to clear out inventory.

The buzz around the event will also be affected by football fever. On the evening of Black Friday itself, instead of going shopping, a large number of people will head off to England’s second match, against the United States, which reduces valuable evening sales.

Some people may return to retail over the following days, however, and the trend away from nights out, noted by many supermarkets and hospitality companies, could mean bored homeowners have more time to search online for deals. good.

However, the growing skepticism about the deals on offer likely means the days of crazy clicking are over. Which consumer group? He continues to warn that “most of the announced ‘deals’ should be taken with a pinch of salt.”

Technology, usually considered the winner of Black Friday, will be in less demand this year, because many families have bought larger TVs, laptops and game consoles for entertainment and work while stuck at home during pandemic lockdowns. Returning to physical shopping after two years of lockdown on the streets may also dampen the mostly online event. Many retailers have launched Black Friday discounts early, suggesting they have inventory to clear after disappointing initial sales.

The period of relatively warm autumn weather has added to the suffering of retail clothing retailers. Winter coats and expensive knitwear, which typically rocket under fashion sales at this time of year, are less appealing in the mild temperatures that large parts of the UK have enjoyed over the past couple of months. Online retailers expect Black Friday sales to decline for the second year in a row — by 5% according to trade body IMRG and analysts at Capgemini, with apparel suffering the biggest drops.

Concerns about deliveries, with strikes on cards By way of the Royal Mail which runs until Christmas Eve may convince many that a trip to the city is a safer bet. Some people with little to spend are turning to cash instead of cards to control their budgets, and that makes department stores a more attractive option.

This decline is likely to put more pressure on digital companies already struggling with falling demand and rising costs – particularly in dealing with deliveries and revenue as fuel, energy and labor costs soar.

“It is well documented that things are very difficult at the moment. If the situation deteriorates further, it would already be a cause for concern,” says Andy Mulcahy, Director of Strategy and Insight at IMRG.

With a number of companies already on the brink, fears of a bad end to the year – when most retailers make their profits – could prompt already-stressed lenders and suppliers to claim their debts, casting a shadow over the sector in the supposed holiday season.

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