Interest in Black Friday shopping has been growing over the years, with shoppers taking advantage of massive discounts from retailers. The increased interest from shoppers is likely to drive more sales and spending during the period.
According to data presented by Finbold, United Kingdom Black Friday 2021 sales are projected to grow 21.7% on a year-over-year basis from £2.78 billion to £3.39 billion. Despite the impact of the coronavirus pandemic, sales increased 10.1% between 2019 and 2020 from £2.53 billion to £2.78 billion.
Elsewhere, this year, the Brits are expected to spend a total of £3.38 million per minute during the Black Friday shopping weekend. They are projected to spend £1.82 million per minute on offline shopping while the rest goes to online platforms. The data and forecast on UK Black Friday spending is provided by the Vouchercodes.co.uk report.
Reopening economy to influence increased Black Friday sales
The projected rise in 2021 sales reflects the impact of the reopening economy that was heavily hit by the coronavirus pandemic.
The reopening has been aided by the rollout of vaccines in the UK and lifting of restrictions like the lockdown. Notably, during the last Black Friday, high market volatility and supply chain disruption impacted shopping. However, the economy is showing signs of recovery with projections pointing to a solid growth that potentially spells good fortunes for businesses.
Worth noting is that consumers could also not spend more in the past year due to the high unemployment rate. However, restrictions have since been eased, an aspect that will likely reflect on the Black Friday sales.
Furthermore, the sales growth will also reap from the online shopping growth that was directly influenced by the pandemic as customers shifted to eCommerce platforms due to the lockdown. However, despite the growth of online shopping, a significant number of shoppers will likely prefer an in-person shopping experience which works well for consumers intending to try out products like clothes and view products before purchasing them.
There is also a likelihood of increased demand for various products. Therefore, retailers should be prepared to meet the demand, meaning they have to put aside the challenges like supply chain disruption, a shortage of drivers, Brexit complications, and price inflation. The demand might also surge further, considering that Black Friday will usher in the holiday shopping rush.
Christmas spending during Black Friday likely to influence spending and sales
At the same time, the unclear supply chain constraints might force consumers to shop for Christmas during the Black Friday weekend. This possibility makes it essential for retailers to target shoppers earlier with both in-store and online promotions. Retails might use approaches like enhancing their digital shopping experience, complimenting in-store discounting through Click and Collect alongside next-day delivery.
The high spending per minute might be a result of the ability of retailers to have formidable digital platforms. Online sites are assumed to be operating 24 hours a day, giving consumers more time to shop since online sales are spread over more hours of operation than offline sales.
The changing nature of Black Friday shopping is also influencing sales and spending. In recent years, retailers have increasingly been spreading the Black Friday deals over a long period. Previously, Black Friday deals were only confined to an average of two days. In general, the retailer will determine the shopping session’s start and end date depending on their motivation to maximize sales.