In a pivotal moment for Britain’s retail sector, Black Friday has arrived, with stores eagerly hoping for a sales surge to counteract a difficult November. The month has proven challenging for UK retailers, as the onslaught of Storm Bert brought high winds, heavy rainfall, and widespread transport disruptions, deterring shoppers from hitting the high streets. Coupled with lingering consumer wariness in the wake of October’s budget, the storm’s impact has left retailers counting on a Black Friday boost to salvage the start of the critical “Golden Quarter.”
According to figures from the Office for National Statistics (ONS), UK high street footfall plummeted by 5% last week compared to the previous seven days, and sat a staggering 10% lower than the same period last year. The data paints a stark picture of the uphill battle retailers face, particularly in regions hit hardest by Storm Bert, such as the North East, Yorkshire, Wales, and Scotland.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), summed up the sentiment: “Footfall took a disappointing tumble in November, as a later-than-usual Black Friday and low consumer confidence meant customers were hesitant to hit the shops.” She noted that retailers were holding out hope that Black Friday and subsequent Christmas sales would help turn the tide on 2024’s declining footfall trend.
A Shift to Online Sales
While Black Friday has traditionally been associated with early morning queues and crowded store aisles, the event has increasingly shifted online in recent years. This digital transition may prove fortuitous for retailers grappling with the aftermath of Storm Bert and apprehensive consumers.
However, the online realm is not without its own challenges this Black Friday. Amazon, the e-commerce giant often seen as synonymous with the shopping bonanza, is facing the prospect of widespread worker protests and strikes. The Make Amazon Pay campaign, advocating for improved worker rights and environmental action, has organized demonstrations in numerous countries, including the US, Germany, and the UK.
“This Black Friday, thousands of Amazon workers are taking action around the world to demand better pay, better treatment, and a better planet. The Make Amazon Pay campaign is uniting activists, trade unions, and organizations to stand up to the exploitative practices of one of the world’s most powerful corporations.”
– Spokesperson for the Make Amazon Pay Campaign
Navigating Consumer Caution
For shoppers braving the Black Friday frenzy, both online and in-store, the pursuit of a bargain comes with a note of caution. Experts warn that the event is a prime time for scammers looking to exploit the high volume of transactions and frenzied atmosphere.
Louise Cockburn, information security culture manager at Quilter, advises consumers to be wary of deals that seem too good to be true, as they often are. Tactics like time-limited offers, low stock warnings, and unsolicited emails claiming account issues are all red flags to watch out for. Cockburn emphasizes the importance of verifying deals, only shopping on secure websites, and contacting retailers directly for any account-related concerns.
The Illusion of Deep Discounts
Even for legitimate Black Friday offers, the allure of steep savings may be more illusory than it appears. A closer look at some of the most promoted deals reveals that the discounts are not always as generous as they seem.
An analysis by The Filter, the Guardian’s product review and recommendation site, found that many advertised Black Friday deals simply reverse price hikes implemented earlier in October. While the offerings still represent a reduction from the item’s recent selling price, they do not necessarily constitute historical lows or unbeatable value.
“It’s a common tactic for retailers to inflate prices in the lead-up to Black Friday, only to then promote a seemingly impressive discount. Consumers need to be savvy and look at price history, rather than just the advertised savings, to gauge whether they’re getting a genuinely good deal.”
– Retail analyst, speaking on condition of anonymity
A Crucial Christmas Run-Up
As the Black Friday sales unfold against a backdrop of economic uncertainty and recovering storm damage, UK retailers are acutely aware of the event’s significance. With Christmas just around the corner, a successful Black Friday could provide a much-needed springboard into December.
However, even a Black Friday boost may not be enough to fully counteract the challenges posed by inflation, energy costs, and wavering consumer confidence. As Andy Sumpter, retail consultant at Sensormatic, noted, November’s lackluster footfall will have come as a blow to many retailers who were banking on an early Christmas trading lift.
The coming weeks will be a crucial test for Britain’s retail resilience. While Black Friday offers a glimmer of hope, it remains to be seen whether the sector can weather the storm and deliver a holiday season that meets expectations. For now, retailers are holding their breath, hoping that the allure of a bargain will be enough to entice shoppers back to the tills and online checkouts.
