As Black Friday approaches this week, the retail landscape is experiencing a unique set of challenges. With consumer sentiment on the decline and retailers grappling with the aftermath of pandemic-induced online shopping booms, this year’s sales season is poised to be a test of resilience. Good luck and happy trading to all retailers and suppliers this busy season!
Here are some facts and forecasts ShopGrok has compiled:
- In 2022, Australians splurged over $7.1 billion during the Black Friday to Cyber Monday spree, propelling retail turnover to a record high. (National Retail Association).
- Fast forward to 2023, and the October NAB Consumer Sentiment Survey reveals a mixed bag – rising consumer stress, primarily driven by job-related and health concerns, while cost-of-living pressures showed a slight easing in Oct albeit still well above the long-term average.
- Despite a backdrop of economic uncertainty, consumers are eagerly eyeing November discounts, signaling an opportunity for retailers to bridge the gap.
- This year, Black Friday falls on November 24, but many retailers have started their massive savings early and offer them over the Black Friday weekend. Research by the Australian Retailers Association (ARA) / Roy Morgan reveals shoppers are tipped to spend $6.36 billion across the four-day weekend – up 3.0% from last year. However, the same research predicts only a 0.1% increase for the entire November to December 24 Christmas trading period as a whole, highlighting the ‘pull forward’ of sales from December into November. The extent to which sales have been ‘pulled forward’ by Black Friday versus adding incremental revenue will be hard to predict until the dust settles on Christmas.
- The rise in marketplaces looks set to accelerate during Black Friday, with Australian consumers set to spend $4.8 billion this year on online marketplaces alone ( ShipStation, Retail Economics).
- 44% of digital natives (consumers under 45) intend to engage in their festive shopping during promotional periods like Black Friday and Cyber Monday.
- “More and more consumers are being budget-conscious in light of the cost-of-living crisis, so the Black Friday sales are an ideal time to grab a bargain and save some unnecessary stress the weeks before Christmas.”(Paul Zahra)
- Matthew Herbert from Tracksuit: “With the upcoming generation focused on making every dollar count, sales periods like BF/CM become increasingly important for brands. These retail moments aren’t just about consumers going on a shopping spree. Rather, it’s an opportunity for brands to capture the hearts (and wallets) of a budget-savvy consumer, striking a balance between quality and affordability.”
Get in touch to learn how ShopGrok Insights can help you stay optimise your strategy and win more customers this Black Friday.