As the digital transformation of the retail industry accelerates, traditional brick-and-mortar stores in the UK are bracing themselves for unprecedented challenges this Black Friday. According to Springboard, a leading footfall tracker, a significant 3.7% drop in visitor traffic is projected on Black Friday alone, marking the weakest performance for the entirety of the Black Friday weekend with an overall 2.7% decrease.
The downward trend in footfall on Black Friday has been consistent, with a 3.6% decline last year and a 1.1% dip over the entire weekend. This trend reflects the ongoing shift towards online shopping, as many retailers are actively encouraging consumers to make their Black Friday purchases through digital channels rather than in-store.
While physical stores are experiencing a decrease in foot traffic, online transactions are expected to see a modest 4% increase this Black Friday. However, this growth rate is slower compared to the 5.5% surge recorded last year. The challenging economic climate, marked by high debt levels, rising inflation, and reduced disposable income, is likely contributing to the decline in physical store visits and the slowing growth of online transactions.
Moreover, the prevalence of year-round discounts and consumer skepticism surrounding the authenticity of Black Friday deals further complicates the landscape for retailers. Price comparison websites also play a role in empowering consumers to verify the legitimacy of discounts, potentially curbing the anticipated increase in online transactions.
Springboard forecasts that UK shopping centers, which house a significant number of fashion retailers, will bear the brunt of the declining footfall this Black Friday. Shopping centers are projected to see a 4.7% decrease in foot traffic on Black Friday and a 3% drop over the entire weekend, compared to a more modest 1% and 0.9% decline, respectively, at retail parks.
In conclusion, the convergence of changing consumer behavior, economic challenges, and evolving retail dynamics poses formidable obstacles for UK stores this Black Friday weekend. The decline in footfall and online transactions underscores the need for retailers to adapt and innovate in order to thrive in the digital age.
For more information, check out these useful resources:
1. Retail Gazette
2. Retail Week
