Black Friday spending to halve due to cost-of-living crisis
Despite a likely overall reduction in spend, over three quarters (76%) of shoppers said their proportion of spend online will increase this year
Overall spending per person over Black Friday is due to fall from £168.18 in 2021 back to the 2020 average of £86.06, according to Wunderman Thompson Commerce’s findings.
This comes as the ongoing cost-of-living crisis, rising inflation and debt concerns are expected to limit shoppers’ spend during Black Friday 2023.
However, two-thirds (66%) of Black Friday shoppers are set to buy from Amazon. Despite a likely overall reduction in spend, over three quarters (76%) of shoppers said their proportion of spend online will increase this year, as they search for the best deals offered by large-scale marketplaces such as Amazon and eBay.
In Wunderman Thompson’s findings, Christmas remained a key driver for expenditure, with gifting being the top reason to purchase for 57% of the surveyed shoppers.
Hugh Fletcher, global head of consultancy and innovation at Wunderman Thompson Commerce, said: “Retailers will simply have to work that much harder to encourage spending this Black Friday amidst the cost-of-living crisis and worries over debt.
However, the pressure that will be felt by brands, retailers and marketplaces doesn’t come without opportunity. They all now have many more channels at their disposal and must take a wise approach to meet shoppers’ demands. Fusing together deals and discounts across different platforms can offer a foundation to reach millions and on a global scale.”
He added: “Ultimately, it’s down to retailers, brands and marketplaces to find the perfect blend of transparency and consumer-centric thinking when peak traffic inevitably spikes. Be genuine in approach and speedy in service to connect with your audiences so they feel compelled to go from scrolling to purchasing. Or face a reality where your brand becomes disconnected with shoppers’ changing desires and habits.”