Black Friday predictions: footfall to decline by 2.8% y-o-y as retailers extend promotions24 November 2016
With an estimated £5bn of sales expected to be made over Black Friday weekend (spanning Thursday 24 November through to Cyber Monday, 28th November), this year is set to see a decline in shopper traffic on the High Street, as retailers extend their promotional strategies.
This 2.8% drop in 2016 Black Friday footfall follows a decline in shopper traffic of 4.05% year-on-year on Black Friday 2015.
Edward Cooke, Chief Executive of Revo, the retail property body, said:
"Despite the expected slight fall in shopper footfall over Black Friday, studies show retail sales are up and consumer spending remains resilient post-Brexit.
“90% of sales continue to involve a physical shop in some way, with a high number of shoppers still wanting to make purchases in person, or use stores to pick up goods they’ve ordered online, especially in the run up to the busy festive season.
“However, the way retailers sell from stores is changing and, with landlords, they are constantly looking at new ways to attract customers, adapt and enhance retail destinations to boost the shopping and leisure experience, and increase value for consumers and local communities.”
Steve Richardson, UK and MEA Director at ShopperTrak, commented:
“While we’ve seen lots of build-up to Black Friday, this year there is a marked shift not only in terms of retailers’ adoption of the promotional event but also consumers’ participation in it, perhaps that Black Friday fatigue is setting in.
“Some retailers, such as Asda and Next, have confirmed they won’t participate in Black Friday at all, while others are extending promotions to longer periods, moving away from the ‘single day flash sale’ model we saw in Black Friday trading prior to 2014. For instance, Amazon has just this week launched 12 days of discounts, whereas Argos has promised shoppers a 13 day ‘shopping bonanza’ over the Black Friday period.
“By spreading demand over a long period, these extension strategies remove the immediacy on customers to make a purchase on Black Friday itself, meaning the urgency to go into a physical store to secure a discounted item is lessened. This means we can expect to see a decline in shopper traffic on the day itself, down 2.8% on last year.”