UK Black Friday sales are predicted to grow by 3.8 per cent to £10.1 billion compared to last year’s shopping event (Monday 21-Monday 28 November 2016), according to research by GlobalData.
The digital media company predict sales will account for 10.4 per cent of total quarter 4 spend. The company said that although growth is forecast to slow year-on-year, we expect more retailers to take part in the event this year in an attempt to stimulate the waning demand they have faced over September and October.
“Electrical sales are expected to continue to dominate Black Friday promotions, although year-on-year growth is forecast to slow to 3.0%, due to inflation in the market discouraging spend,” said Eleanor Parr, retail analyst at GlobalData.
Although the smallest proportion of the market, homewares is forecast to experience the strongest year-on-year growth of 5.9 per cent. GlobalData said that poor sales in homewares throughout the year, driven by consumers’ drive to cut down on discretionary purchases, will mean more retailers will feel the need to participate in Black Friday, in an attempt to stimulate demand and sell through slow moving lines.
This year companies are starting sales as early as 17th November, a week before the Black Friday event (24th November).
GlobalData said that “as more retailers advertise their Black Friday deals early, other players will be forced to participate to remain competitive. This is particularly tricky for retailers that price match, such as John Lewis, which will have no choice but to bring down prices early, impacting margins and stock levels.”