According to the IMRG Capgemini Online Retail Index, online retailers saw a decrease in Black Friday sales this year compared to the previous year’s surge in digital shopping caused by the lockdown. The index, which monitors the online sales performance of over 200 retailers, revealed a 14.3% decline in trading compared to the same period in the previous year. This drop was slightly worse than the expected 10% decrease.
The decline in online sales during the Black Friday period can be attributed to the absence of lockdown restrictions this autumn, which provided consumers with more options for shopping. In contrast, last year, the nation was under strict lockdown measures, forcing consumers to rely solely on online shopping.
To combat the anticipated decrease in online sales, many retailers started their discount campaigns much earlier in November. This strategy aimed to extend the Black Friday period and offset the potential decline in sales during the peak week. Data from a sample of 317 retailers showed that there were 25 live events on Wednesday, November 3, compared to only nine on the same day in 2020. However, the number of retailers with live Black Friday campaigns decreased to 196 on November 24, compared to 220 on the same day last year. On Black Friday itself, the number of retailers offering live campaigns increased and returned to the previous year’s level.
Andy Mulcahy, strategy and insight director for IMRG, observed that the early discounting strategy appeared to have shifted some sales away from the peak week, resulting in a month-long Black Friday event. Lucy Gibbs, managing consultant – Retail Insight at Capgemini, added that while online sales were naturally lower due to consumers returning to physical stores, search trends related to Black Friday were also lower this year, and conversion rates did not recover as strongly. Analyzing this month’s performance will help determine whether the decline in sales was primarily due to a preference for in-person shopping or other factors, such as extended discount periods and ongoing supply chain disruptions.
Overall, online retailers faced a setback in Black Friday sales this year compared to the remarkable growth witnessed during last year’s lockdown. The absence of mandatory lockdown measures and consumers’ return to physical stores affected online sales, resulting in a 14.3% decline. Retailers responded by initiating their discounts earlier in November to prolong the Black Friday period and maintain customer engagement. Further analysis will be necessary to determine the main factors contributing to the decrease in online sales and whether this trend will persist in future Black Friday events.
Useful Links:
– BBC News: “Black Friday 2021: online sales fall despite strong November”
– Reuters: “Fewer shoppers take advantage of Black Friday discounts – U.S. report”
