Black Friday shoppers to spend £300 million more than last year, but it won't boost retailers' profitabilityComments Off on Black Friday shoppers to spend £300 million more than last year, but it won't boost retailers' profitability
British shoppers will shell out £300 million more on Black Friday this year, data has revealed, but retailers have been warned not to get over-excited about the one-off sales bonanza.
Total sales on Black Friday, which this year Falls on November 27, are set to hit £1.6 billion, compared with £1.3 billion last year, and the majority of Britons (57%) plan to pick up a bargain during the frenzy, according to research by discount and rewards provider Webloyalty.
But while the event is growing in popularity, it isn’t likely to generate more profit for retailers, Webloyalty said.
Its survey of 2000 consumers found that 61% will simply be bringing forward or delaying purchases that they would have otherwise made outside the event.
Plus, the goods that they will buy will be sold a dramatically smaller margin.
Almost 1 in 5 shoppers are expecting discounts of up to 50% on both Black Friday and Cyber Monday – Black Friday’s online equivalent that occurs three days later – and 9% anticipate getting more than 60% off.
Electronic goods, home appliances, clothing and homewares are likely to be among the most sought after deals, Webloyalty said.
“Retailers need to wake up to this displaced spending and be very careful not to cheat themselves of revenue,” said Guy Chiswick, Managing Director of Webloyalty Northern Europe.
Estimated total spend on Black Friday 2015
“The consumer is far more likely to be the winner here, but they still need to be careful not to be sucked in by the hype and make sure they’re getting the discount they want to see.”
Argos owner Home Retail Group has already issued a profit warning, complaining that that the Black Friday, which last year saw websites crash and shoppers fighting over televisions, was too unpredictable.