Christmas and January sales to be dampened by Black Friday…
More than two-thirds of consumers plan to take full advantage of Black Friday deals, which kick-starts the surge of Christmas shoppers, but consumers anticipate a curb in spending through the month of December and in the January sales.
As it’s revealed that 62 per cent are planning to use Black Friday (November 25) as an opportunity to buy discounted presents, a survey by retail and brand consultancy, The Market Creative, found that 26 per cent of shoppers anticipate they will spend less money in December.
Analysts suggest the impact on spending is likely to run into early 2017, as 28 per cent of shoppers said the introduction of Black Friday and Cyber Monday had made them less interested in the January sales, due to generally better and more attractive offers.
Sue Benson, managing director at The Market Creative said:”Scenes of frenzied shoppers battling for bargains have influenced our perception that Black Friday deals are shorter and deeper than other sales. Coupled with our desire for instant gratification Black Friday could well be a retailers dream period as they get much-needed pre-Christmas sales in early.
“But it’s not all good news. The Christmas and January sales have traditionally been the most lucrative for retailers and Black Friday has dragged spending forward. Consumer wallets are finite, so we’re seeing December full-price sales and profits cannibalised. Another watch out is the discount strategy involved, if merchandise isn’t shifted how low are retailers prepared to go in the traditional Boxing Day and January sale period?”
Although Black Friday has changed the Christmas shopping habits of younger generation consumers, the trend was less apparent among older age groups. Of the 18-24 year olds surveyed, 83 per cent plan to take advantage of Black Friday deals and 86 per cent will buy discounted Christmas gifts. However, 47 per cent of shoppers over 65 plan to buy something and just a quarter will buy Christmas presents.
Access the full report here