According to a report by MRI Software, the forecast for Black Friday footfall in the UK is not as impressive as in previous years. The report identifies several factors that may impact retail sales during the Golden Quarter, including limited consumer spending power due to interest rates and inflation. While footfall is expected to increase by 7.6% week-on-week across all retail destinations in the UK, this growth is lower than the average increase of 9.7% seen in the past two years.
The report also predicts that shopping centre destinations will drive footfall on Black Friday, with an expected increase of 14.4%. This can be attributed to factors such as free parking, a wider variety of shops, and leisure facilities that allow consumers to make a day out of their shopping experience. Retail parks are projected to see a 5.5% increase in footfall, while high streets will only experience a 5.1% increase compared to the significant boost of 17.2% observed on Black Friday in 2022.
MRI Software’s analysis of Black Friday data from 2014 to 2019 shows a long-term shift in consumer behavior towards online shopping since the pandemic. On average, footfall during Black Friday increased by 21% week-on-week during this period. However, this year’s footfall is expected to be 8-12% lower compared to pre-pandemic levels. The report explains that rising interest rates and inflation have put financial strain on households, making them more cautious about spending. Many consumers are likely to delay their shopping until closer to Christmas in order to maximize their potential savings.
The report acknowledges that retailers are facing numerous challenges, including the ongoing trend towards online shopping. Nevertheless, it also highlights a glimmer of hope, as MRI Software’s consumer survey revealed that 60% of respondents plan to purchase gifts during the Black Friday sales. The report suggests that brick-and-mortar retailers and shopping destinations need to be creative in attracting shoppers during this period and provide them with a memorable experience, as well as significant savings.
In conclusion, the forecast for Black Friday footfall in the UK is expected to be underwhelming compared to previous years. Restricted consumer spending power, coupled with the long-term shift towards online shopping, poses challenges for retailers. However, the report unveils a significant portion of consumers who plan to take advantage of the Black Friday sales. Retailers and shopping destinations must think innovatively to attract shoppers and provide them with a memorable and rewarding shopping experience.
Useful links:
1. BBC – Black Friday: Is it still worth the hype?
2. Retail Gazette – UK retailers set to feel the impact of troubled Black Friday
