A survey by consulting firm Oliver Wyman of 1,700 UK consumers suggests that shoppers plan to spend on average £288 during the belonged Black Friday (29 November) and Cyber Monday (2 December) weekend. However, this is a 12% drop from last year, where respondents said they would be spending on average £330.
Less than a third of shoppers (29%) expect to be making spontaneous purchases. While there will be a small increase in sales directly related to discounts, Oliver Wyman stated that this shows that the heavy discounting period is incentivising customers to move away from full-price purchases, reducing margins across the sector.
Despite the decline in spending, the vast majority (89%) are planning to shop online over Black Friday and Cyber Monday. Of those shoppers, just over half (55%) are planning on making purchases with online-only businesses and a third on making purchases directly on retailers’ websites.
Although nearly half of UK consumers still plan to visit the high street (44%) only one in 10 (11%) will exclusively shop in-store. With UK online sales currently averaging 18.1% (ONS, September 2019), this signals a continued uplift towards online shopping.
Duncan Brewer, retail and consumer goods partner at Oliver Wyman, commented: “Our survey shows that UK shoppers are prepared to spend less over Black Friday and Cyber Monday this year. The reason for this is two-fold. Firstly, they are likely to be suffering from promotional fatigue due to continuous discounts and offers. Over recent months, many retailers have increased their promotional programmes to maximise revenues and hold on to ever less loyal customers. In particular, shoppers are choosing to shop with online-only businesses where they can easily access price and product comparisons.
“Secondly, there has been a decrease in consumer confidence due to factors such as Brexit. In fact, 30% of people surveyed said they have been stockpiling before the Brexit deadline, in an attempt to beat the potential price increases, regardless of discounts they might be offered over Black Friday and Cyber Monday.
“With discounts failing to generate more spending and an uncertain economic period ahead of us, retailers need to get smarter about the way they attract customers. They need to rethink their loyalty schemes to provide a real advantage. Through members clubs like and subscription-based schemes, shoppers who are increasingly driven by price rather than brand loyalty will keep coming back for offers, products and services they can’t get elsewhere.”
