The seasonal sales surge will continue

Despite this year’s inflationary squeeze, we can still expect a seasonal surge in sales this Black Friday. However, the volume of purchases will see a hit, with research suggesting that 98% of sales in 2021 were cheaper or the same price at other points in the year. Combined with falling consumer confidence, there is growing cynicism about how worthwhile Black Friday deals truly are.

Compared with other retail sectors, consumer electronics will continue to perform well this weekend, with brands like Currys, AO and Amazon leading the Black Friday push. However, they are still not immune to the overarching challenges facing consumers. With the cost-of-living crisis causing people to cut back on home improvement projects and spend less on the essentials, this market will likely see a reduced number of sales compared to previous golden quarter numbers.

Fashion retailers will also face headwinds as consumers scale back on discretionary spending, leaving clothing brands no option but to prolong sales well into December to secure impactful numbers. As a result, I predict there will be heavy discounting on fashion and specialty retail as brands hope to clear off seasonal inventory in boxing day and January sales.

 

Leave a Reply

Your email address will not be published. Required fields are marked *