Deloitte comments ahead of Black Friday and Cyber Monday has been saved
Deloitte comments ahead of Black Friday and Cyber Monday
23 November 2017
Commenting ahead of Black Friday and Cyber Monday, Ian Geddes, head of retail at Deloitte, said:
“Black Friday and Cyber Monday have established themselves among the most important dates in the UK retail calendar.
“We expect to see another record year for Black Friday, with UK online sales likely to easily exceed last year’s £1.23bn record on the day itself. However, with Black Friday having grown from a day of promotions to what is now almost a month-long event, Black Friday event sales are far higher.
“Following disappointing October sales figures, the first rise in interest rates in ten years, and a squeeze on disposable income driven by rising inflation and stagnant wage growth, retailers will be hopeful for a boost to their bottom line. Indeed, consumer spending has largely resisted these external pressures, and Black Friday is still expected to be the biggest shopping event of 2017.
“Whilst some commentators have questioned the impact that the event has on longer term shopping behaviour and the value of discounts, we believe that Black Friday is no different in this regard from any other promotional event. The one thing that makes it different is the scale and the potential for it to pull sales forward from Christmas.
“The success of Black Friday, when the concept was first imported from the US, took the UK retail industry by surprise initially. Considerable planning now goes into the event, with many retailers planning a year in advance. Spreading out promotions throughout the week is a useful strategy that helps spread out demand and manage supply chains more efficiently.
“Interestingly, the figures associated with Black Friday pale in comparison with the promotion events seen in the Far East, with China’s Single’s Day this year generating £29bn sales in just one day, a 40 per cent increase year-on-year. UK businesses are increasingly keen to cash in on this success and many UK retailers are already amongst the 60,000 international brands participating in Singles Day. Given the success of the promotion model, it’s only a matter of time before we see Singles Day becoming an established part of the UK shopping calendar.”
Notes to editors
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NWE LLP, which is a member firm of
The information contained in this press release is correct at the time of going to press.
For more information, please visit www.deloitte.co.uk.
Member of Deloitte Touche Tohmatsu Limited.