Black Friday could turn out to be more of a ‘Bleak Friday’ for retailers as consumers feel the cost-of-living bite.
Originally used by Philadelphian police in the 50s to describe the chaos of flocking suburban shoppers into the city the day after Thanksgiving, the event is now a global sale across the retail sector which lasts until Monday, dubbed ‘cyber Monday.’
Early indicators suggest that spending is going strong, with Nationwide’s live spending tracker saying transactions were up 7% vs. 2021 to 1.37mln at 9 am this morning.
Susannah Street, a senior investment and market analyst at Hargreaves Lansdown said UK spending is expected to increase by 0.8% over the weekend to £7.8bn.
“But that headline figure masks the impact of inflation on volumes,” Streeter said.
“Creeping prices mean we may put fewer items into trollies and virtual baskets.”
“More people are turning to charity shops and auction houses for deals, rather than buying new. This search for second-hand bargains is likely to eat into sales, especially with the might of e-Bay promoting pre-loved ranges.”
Black Friday is usually a tough time for smaller retailers, according to data compiled by shop local platform Shopappy and small business publication Newspage.
73% of small independent retailers said the event is bad for business and costs them sales due to consumers being drawn to better-known companies that can promise greater discounts.
The survey, conducted among 1,000 small retailers across the UK, also found that 81% feel Black Friday is putting pressure on them to lower their prices in order to remain competitive at a time when margins are already tight.
Around 89% said they wish the event would be removed, with one respondent saying the event is an “annual kick in the teeth for small independent retail businesses.”