Black Friday sales have already begun, but British retailers are likely to be more dependent on a spike in consumer spending on the day itself this year, according to new analysis from Lloyds Bank.
Retailers saw sales of big-ticket items swell on Black Friday in 2022 and 2021. Last year, their sales volume rose by 32% when compared to the daily average in the five weeks surrounding the day itself, while their sales value rose by 51%. In 2021, their sales volume rose by 35% and sales value rose by 60%.
However, retail sales flattened across the five-week period surrounding Black Friday, with only a 0.5% increase in sales per customer in 2022, compared to the same period in 2021. The analysis suggests many retailers will be more reliant on an increasingly concentrated period of consumer spending on Black Friday itself.
Lloyds Bank analysed anonymised consumer spending across a sample of debit and credit card transactions made by 26 million customers between 8th November and 12th December 2022 and 9th November and 13th December 2021.
Aled Patchett, head of retail and consumer goods at Lloyds Bank, said: “British retailers have been adapting their seasonal sales strategies to take advantage of Black Friday since we first imported the concept from the US some years ago.
“Black Friday isn’t just one day anymore. Sales now start in early November and last well into December. However, our analysis shows that the day of Black Friday is now more important than ever for retailers.”
Lloyds Bank’s analysis also revealed that only certain segments of the UK retail industry are set to benefit from a spike in spending on the day of Black Friday and highlighted the consumers these businesses should target to generate the biggest boost in sales.
Electrical goods retailers saw sales increase by 133% on Black Friday in 2022, the largest rise of any segment, followed by health and beauty (88%) and clothing retailers (87%) and department stores (71%). However, segments like gardening and hobby stores saw no increase in sales on the day.
Retailers with a multi-channel offering also fared better. Online retailers saw their sales increase by 72% compared to the average for any other day in the five-week period.
Meanwhile, Generation Z led the way on Black Friday shopping, spending 76% more on Black Friday in 2022, compared to Millennials and Generation X, who spent 64% and 49% respectively.
Patchett added: “Gen Z embracing Black Friday suggests the concept will be with us for the long-term. Retailers that haven’t taken steps to take advantage of Black Friday for 2023 should consider how they can target this group in the years ahead.”