Black Friday consumer spending forecast to drop 50% this year
Posted on in Business News , Cycles News
Figures from research conducted by global marketing agency Wunderman Thompson Commerce suggested consumers are set to spend up to 50% less than usual this Black Friday, November 25th.
Overall spend per consumer is expected to fall from £168.18 in 2021 back to the 2020 average of £86.06.
However, in a blow to the bricks and mortar retail sector, it seems almost two thirds of Black Friday shoppers expect to make their purchases from Amazon.
Over three quarters (76%) of shoppers said their proportion of online spend will likely increase this year as they search for the best deals, range, speed and convenience offered by marketplaces such as eBay and Amazon.
Christmas is set to remain a key driver for expenditure with gifting the top reason to purchase for 57% of shoppers.
Marketplaces have grown in tandem with Black Friday in general, with over a third of global shoppers (34%) going as far as to say they get inspiration from marketplaces more than search engines (34%).
“Retailers will simply have to work that much harder to encourage spend this Black Friday amidst the cost-of-living crisis and worries over debt,” Wunderman Thompson Commerce global head of consultancy Hugh Fletcher said.
“However, the pressure that will be felt by brands, retailers and marketplaces doesn’t come without opportunity. They all now have many more channels at their disposal and must take a wise approach to meet shoppers’ demands.
“Fusing together deals and discounts across different platforms can offer a foundation to reach millions and on a global scale.
“Ultimately, it’s down to retailers, brands and marketplaces to find the perfect blend of transparency and consumer-centric thinking when peak traffic inevitably spikes.
“Be genuine in approach and speedy in service to connect with your audiences so they feel compelled to go from scrolling to purchasing.
“Or face a reality where your brand becomes disconnected with shoppers’ changing desires and habits.”