Retailers warned to expect reduced January purchasing
Shoppers are expected to up their spending on Black Friday, but this will lead to a reduction in December and January, according to new research.
The Market Creative found that more than two-thirds of shoppers intend to use Black Friday offers, with 62% of those buying in preparation for Christmas.
However, 26% of shoppers say it will mean a reduction in their December spending while 28% say their interest in January sales also wanes as a result.
This may concern retailers who are not in a position to take advantage of Black Friday, or who have already invested heavily into preparing for January.
Two thirds of consumers said they opt to purchase in late November as they believe the deals they get on Black Friday and Cyber Monday are the best available.
Some 35% said that they would spend their budget on those days and would therefore not have as much to spend in the months that follow.
The trend to take advantage of Black Friday is more prevalent among young shoppers – 83% of 18 to 24 year olds participate in the late November sales, with 86% of them buying for Christmas.
Typically, the older a shopper was, the less likely they were to use Black Friday offers, as just 47% of over 65s buy in the sale, with just over a quarter of those purchasing Christmas gifts.
Retailers need to ensure they manage their finances effectively over the festive period, as there is a need to balance sales, stock and finances.
Those that failure to adequately manage their finances could face difficulties and may be forced into administration in severe cases.
Options do exist though and it is important for a business to assess these before making decisions – the process should not be delayed by a great deal though as such actions might hinder what is possible in the long term.
The Market Creative managing director Sue Benson described Black Friday as a “retailer’s dream period” as they can boost pre-Christmas sales at an early point.
She did however infer that perceptions of Black Friday might paint a picture that deals are shorter and deeper than other sales, although this isn’t always the case.
By Phil Smith