As UK retailers gear up for Black Friday, a forecast by MRI Software suggests a cautious outlook with expectations of «subdued» sales. The report underscores concerns over consumer spending power, influenced by prevailing issues such as interest rates and inflation during the crucial retail Golden Quarter.
The forecast indicates a 7.6% week-on-week footfall increase across all UK retail destinations. However, this signals a notable dip compared to the previous two years, where Black Friday footfall increased by an average of 9.7%. Shopping center destinations are poised to lead, with an anticipated 14.4% footfall surge, attributed to factors like free parking and diverse shopping options.
In contrast, retail parks expect a 5.5% rise, while high street footfall is projected to increase by 5.1%, significantly lower than the 17.2% boost observed in 2022.
Analyzing data from 2014-2019, the report identifies a long-term shift in consumer behavior since the pandemic, with the average week-on-week rise dropping to 21%. This year’s footfall is expected to be 8-12% lower than a pre-pandemic Black Friday.
Attributing these trends to rising interest rates and inflation impacting consumer finances, the report suggests consumers may delay Black Friday purchases until closer to Christmas to maximize savings.
Despite challenges, the report brings a positive note, revealing that 60% of UK consumers plan to purchase gifts during Black Friday. It underscores the need for retailers to be creative in attracting shoppers, offering a memorable in-store experience alongside significant savings during this critical period. Explore Black Friday deals thoughtfully crafted to meet your savings and shopping needs.
