In a strategic move, UK e-tailers kicked off their Black Friday campaigns ahead of schedule this year. However, the anticipated surge in sales did not materialize for many, as per insights from the IMRG Online Retail Index, a trusted source tracking UK online sales for over two decades.
Nearly 48 out of 295 retailers initiated Black Friday promotions three weeks before the main event, a number that escalated to 114 within a fortnight. Despite this, the initial two weeks of November yielded suboptimal results, with week one showing nearly stagnant revenue growth (+0.5% year on year) and week two experiencing a significant dip of 6.2%. This has led to a «heavy reliance» on Black Friday week itself to salvage the overall month.
In an unexpected turn, the gifts category, after 20 weeks of negativity, witnessed a modest positive result in week one (+0.6%). Regrettably, this trend reversed in the following week with a substantial drop of over 18% year on year. A poll conducted on November 16 revealed that almost half of the 80 retailers surveyed reported results for that week «below expectation.»
Looking forward to the period from November 20 to November 27, IMRG forecasts overall declines in the total online market, including key product categories like clothing and gifts. The projections indicate a 2% decrease in the total market, a more substantial 3% drop in clothing, and a significant 11% decline in gifts. On a positive note, health & beauty is anticipated to remain in positive territory with a 1% increase.
Andy Mulcahy, Strategy and Insight Director at IMRG, acknowledged the less optimistic signs in November, leaving retailers with ground to cover for a successful trading month. Mulcahy suggests the possibility that shoppers might concentrate their spending more intensely in the final week of November 2023. Retailers could potentially offer substantial deals to address any slow demand or excess inventory. The hope is that an upturn in demand arrives promptly for a more prosperous month for retailers.