No surprises this Black Friday, according to Shore Capital, as inflation continues to eat into consumers’ pockets.
Analysts noted that “common sense” prevailed this year, with many consumers catching onto the fact that the deals were not all that special to start with.
Retailers, on the other hand, are “now pretty sensible and disciplined about Black Friday, no longer feeling compelled to be stupid because others were”.
Non-food retailers, such as JD Sports, Frasers and Next may have been hoping the sales event would have provided an opportunity to clear some stock that they have accumulated as a result of supply chain issues.
One possible avenue for relief on the excess stock could be provided with the cost-of-living crisis, as demand for keep-warm lines could help sales as customers look for ways to keep energy bills down, said Shore Capital.
Despite what was a quiet Black Friday compared to previous years, footfall generally bounced across shopping centres and high streets, due to a largely Covid-free period.
While footfall is still down roughly 15% to 20% on pre-pandemic levels, according to data from Springboard, the bounce back is still encouraging for bricks-and-mortar retailers.
Especially when you consider the fact that “online participation is now settling down in the UK with stores regaining market share, and it is clear that the future of the shop is quite assured”.
Ahead of the Christmas period, Shore Capital expects shoppers to be more careful, disciplined, and precise in their decisions, with gifts focused on children rather than grown-ups.
“All in all, after a relatively solid period of trading through to the end of October 2022, we are not expecting wholesale disaster stories in the New Year updates as opposed to the confirmation of quite subdued and focused spending and near-term forecast reiteration,” said Shore Capital.
Looking forward and into the New Year, the hope is for confirmation that the worst is behind us, with “cautious optimism” for a more positive earnings environment for the second half of the year, it said.