Black Friday Phenomenon To Grow In 2016: Verdict Retail
The US shopping phenomenon Black Friday 2016 is set to smash previous sales records in the UK, Verdict Retail has predicted.
The retail research agency announced Wednesday that in 2015, nearly half of those surveyed said they planned to take advantage of Black Friday or the following Cyber Monday in 2016 - 5% more people than had participated in the previous year.
Electrical appliances like TVs and technological gadgets were and are expected to be the top sellers, with 81% of respondents purchasing these items during the event last year.
The year 2010 heralded the arrival of Black Friday to the UK, with Amazon offering online promotions. In 2013 the event really took off, and has continued to grow in popularity year after year.
In 2014, stores were in chaos as frantic buyers ransacked shelves; the year after, most consumers moved online and away from the queues. Verdict Retail predicts the trend will continue this year.
It also expects that more consumers will be purchasing clothing and footwear this year, compared to 49% last year, as retailers like Next have threatened price increases of around 5% in 2017.
“This year, we expect to see the greatest participation in Black Friday yet, kick-starting the Christmas-buying season. However, the event’s future success is unknown, as consumers become more price sensitive and retailers struggle to drive incremental spend,” said Zoe Mills, an analyst at Verdict Retail.
More than 65% of consumers waited for the sales bonanza to purchase an item, which could mean a fall in sales as stores lose potential customers willing to buy goods at full price.
As consumers get more deal savvy, they may decide to postpone or push forward more purchases, meaning that retailers will need to encourage additional spending during the event to boost profitability, perhaps by offering complementary purchases such as accessories, or trading up.
A study by insurance company Row.co.uk predicted a similar influx in shopping revenue this Black Friday, reporting that sales had increased by 20% each year since 2013.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.