Retailers braced for Black Friday surge
MORE than £2bn is expected to be spent online and in store today as the popularity of Black Friday takes root here.
Black Friday is a US retail phenomena, traditionally marking the day after the Thanksgiving holiday when shops started their Christmas selling period with eye-catching discounts.
Last year as it took off here, deal-hungry Brits splashed-out £810m online alone – the equivalent of more than £9,000 a second, and experts predict a further surge in sales this year.
In 2014 there were some shameful scenes in store as shoppers scrapped over deals, while online some retailers were challenged both in terms of goods in stock and also fulfilling orders. While the majority of retailers are offering Black Friday discounts, others are opting out completely.
Arguably the biggest name to shun it is Asda – somewhat ironic as the US -owned grocer’s use of Black Friday in 2013 helped bring it to shoppers’ attention.
In a bold step, it is now looking to regain shoppers’ attention by not getting involved, as it emphasised the difference between Black Friday’s flash sales on big-ticket, non-essential items and its strategy of “deals on value-for-money, high-quality products that all the family can enjoy”.
Meanwhile Visa, the credit card company, predicts £1.9bn will be spent on its cards today, making it the biggest day for spending on this day in history.
It expects growth in e-commerce to drive sales, as consumers become more comfortable with using mobiles and tablets to shop on the go. Visa Europe predicts that online transactions will top £721m on the day, up 17% on 2014. There will be a total of 11 million online transactions, up 14.5% on 2014.
Kevin Jenkins, managing director UK & Ireland at Visa Europe, said: “This is shaping up to be a huge weekend, online and in-store, for retailers. We’re looking at a combined £1.9bn being spent on Black Friday as retailers discount across both mediums.
“It will be a tale of two different golden hours on the day. On the high street, we’ll see a huge lunchtime rush. Online, the commuter hour will see the highest levels of buying, confirming the growing number of people who think mobile first for shopping. Further developments in online and mobile payment security this year should drive further confidence to shop this way too.
“Black Friday’s growth is really coming online in particular – that’s where this year’s surge is going to come from.”
In terms of products – technology purchases are expected to be the most popular, while the likes of fashion retailers will be hoping to entice shoppers with offers for the Christmas party season.
Chris Wood, chief operating officer at Barclaycard said: “Sales of consumer electronics will again prove a key draw for many, with discounts on the latest phones, tablets and TVs tempting shoppers. In a move to avoid a repeat of last year’s scenes, when shoppers stormed stores in the hunt for a deal, online channels will see the bulk of the spending, making it potentially the biggest day of the year for online shopping.”
John Roberts, founder and chief executive of Bolton-based online appliance and technology retailer said: “With a full year to prepare for this ‘Black eye Friday’ we believe it’s our deals that will take some beating not our customers.
“We are predicting that TVs and smaller food prep products, such as coffee machines, will be flying out of the door and we expect more people to shop online this year because it’s safer and a better way to shop.”
Among AO’s top deals are 40% off a 55″ Samsung Smart Curved TV, which has been reduced from £1,149 to £699.
The Manchester-based Co-operative Group’s online electrical retailer said it had taken on more staff in its call centre, and is also offering customers free delivery withing a one-hour time-slot.
James Holland, managing director of Co-operative Electrical added: “Black Friday and Cyber Weekend are one of the busiest times. Last year we saw sales rocket by over five times compared with any other weekend in the run up to Christmas, and we are expecting a similar pattern in 2015.”
Multi-channel retailer JD Sports Fashion, owner of JD Sports, Scotts and outdoor specialist Blacks, said it was offering significant discounts of up to 50% on selected brands today.
After the problems ecountered by some retailers last year Rupert Eastell, head of retail at accountants RSM predicts better planning will help them avoid any hiccups.
He said: “I think the winners here will be those retailers that have adapted and learned important lessons from last year, and will use the event as an opportunity to create engagement between new and existing customers. Consumers are already in the shopping mindset at this time of year, and so retailers should be using special offers to lure consumers through the door or focus them on a seasonal event.
“What strikes me as interesting is that several High Street names have refused to take part in Black Friday this year. Whilst these retailers have the scale and deepest pockets and can afford not to be part of the event, I think in the future we’ll see more of the larger retailers quietly opting out.
“This runs parallel with what has occurred in the US where gradually the impact of Black Friday has lessened to the point where the discounting is prevalent throughout the year, and as a result, Black Friday has become almost a non-event.”
Sam Fuller, head of consumer at international investment bank Altium, added: “It’s one thing drawing post-Christmas spend out of consumers through managed discounted lines in the January sales, but quite another when you’re offering the perfect opportunity for customers to get their hands on front line Christmas stock at a discounted price for which in pre-black Friday times they would happily have paid full price.”
