Retailers face ‘Black Friday’ as the cost of living crisis hits spending – Business Live | Business IG News

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Britons are expected to cut spending by more than half this Black Friday compared to last year, reports research company, Attest.

It was found that most people expect to buy someBut are unsure how much they will spend.

Nearly two-thirds plan to shop online only – a potential blow for high street retailers who have tried in store displays:

In a fresh blow to retailers on Black Friday, research published this morning suggests a third of households are planning to cut back on Christmas presents this year due to the cost of living crisis.@julietdunlop reports pic.twitter.com/YmZCp0Eu79

– Good Morning Britain (@GMB) November 25, 2022

Intro: Black Friday could be bleak if consumers cut back

Good morning, and welcome to our rolling coverage of business, financial markets and the world economy.

The stakes are high for retailers today as they try to entice shoppers to spend on a spree black Friday provides.

But economists say they could face a “Bleak Friday” this year, as the cost of living crisis means consumers will resist discounts on new electronics kit, homeware, clothing and the like.

Also, the ongoing strikes at Royal Mail could put people off shopping online.

black FridayOriginally an American post-Thanksgiving whiz, it’s now a global phenomenon—thanks to international retailers eager to kick-start the festive rush.

These days, ‘Black Friday’ deals often last for at least a week – with pre-Christmas offers and then January sales. But some offers may not be as generous as they seem (And can be more generous once retailers are desperate to replace stock.)K).

The CEBR thinktank believes we could be witnessing a “Bleak Friday”, with struggling retailers unlikely to be exempt as UK consumers cut spending by an estimated £1.5 billion in the final quarter of this year.

cebr says:

The cost of living crisis, combined with warnings that discounts are often more generous at other times of the year and the threat of a Royal Mail strike, will mean this is set to be a weak year for Black Friday sales And we may see January sales start early in an attempt to move the stock.

Black Friday can also reduce spending before or after the big day/week. This year, people have less disposable income to spend, with surveys showing that many households are cutting back on spending.

cebr says:

While 42% of Brits reported shopping more due to the rising cost of living, suggesting they are looking for discounts, a higher share, 65%, reported they were buying non-essentials due to these cost pressures. Spending less on things.

This is the first Black Friday since 2019 without Covid restrictions, which should help retailers get customers into stores. But sales and profits could still be down through 2021.

as Danny Hewson, AJ Bell Financial analyst, put it:

“Friday should be one of the busiest days for UK retailers, but concerns about limited budgets and the added issue of a strike by Royal Mail workers are both expected to make matters a damp squib.

retail specialist Richard Lim told the BBC that he was expecting Black Friday to be a more “silent affair” in line with last year’s sales decline.

Lim said:

“Essentially, I think what we’re going to see is consumers being more mindful of their spending.”

also coming today

retail giant Amazon Black Friday faces a wave of protests and strikes, as workers walkout over pay and conditions (more on that shortly).

Amazon protests on Black Friday, strike in 40 countries; Employees plan to walkout over pay and conditions: BBG

— FxHedges (@Fxhedgers) November 25, 2022

royal message Today again the employees will stage a dharna outside the offices of the postal groups over the ongoing dispute over salaries. Eight more days of action are planned before Christmas.

A wave of industrial action has gathered pace in the UK, with nurses announcing they will strike for two days next month.

Members of the Royal College of Nursing will hold a national strike for the first time in its 106-year history on 15 and 20 December, which is expected to last 12 hours on both days.

The unprecedented industrial action will seriously disrupt care and is likely to be the first in a series of strikes over the winter and spring by NHS staff, including junior doctors and ambulance staff.

European financial markets may be subdued as Wall Street reopens for a half-day after Thursday’s holiday.

work schedule

  • 7am GMT: Germany’s Q3 GDP Report (Final Estimates)

  • 7.45am GMT: French Consumer Confidence Report

  • 9.30am GMT: Latest UK public opinion and social trends report

  • Afternoon GMT: Mexico’s Q3 GDP report

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