The first Black Friday since the end of lockdown should be cause for celebration among us retailers.
But while the relief that we are fully open for business is tangible, there’s a shadow hanging over this year’s discount day. That shadow is whether our supply chain will hold up.
Black Friday will be the first big test of our fragile retail supply chain since freight costs have skyrocketed, factories have closed in Asia amid new lockdowns, and the HGV driver shortage takes its toll. For many retailers, the big question is whether they can deliver the goods.
From toy stocks impacted by the global chip shortage to stories of party outfits stuck on container ships in the middle of the ocean, and furniture retailers updating customers that they won’t get their dining tables in time for Christmas dinner, it seems that uncertainty is the buzzword this Black Friday.
But with all this uncertainty, how are consumers responding? And what does this mean for retailers?
Shopping for Christmas
Consumers will be shopping for Christmas this Black Friday as they bring forward their spending earlier than ever before. Our data shows that 77% of UK shoppers are planning to shop for Christmas this Black Friday, to allow for longer delivery time.
And it’s something retailers are urging as well to help them fulfil orders in the crucial golden quarter. Fortnum & Mason, Morrisons and Puma have brought forward some festive products or nudged consumers to secure their presents weeks ahead of the holiday season.
We’ve been seeing this trend for several weeks already. The drive to shop earlier for Christmas actually helped boost the UK’s retail market in October, according to data from the British Retail Consortium, as retail sales grew 1.3% compared to the same time last year. Some light relief for our recovering sector.
Shopping second-hand
Concerns over the availability of some items also means that shoppers will be looking further afield to get their hands on the most popular products. With stock availability at an all-time low, the second-hand and refurbished market is booming.
From children’s bicycles to second-hand cars, a healthy domestic supply of pre-loved products, that are in short supply as new, are propping up consumer demand. Prices of second-hand goods are rising as a result. Used car prices for example have risen by as much as 57% since 2019, according to the AA.
In fact, almost a third of UK shoppers (30%) are planning on selling unwanted items ahead of this Black Friday, tapping into this opportunity to sell as well as buy.
But it isn’t just the supply chain crisis that is prompting more consumers to shop second-hand. COP26 this month was a reminder of how sentiment is shifting around these big discounting events.
Conscious consumerism is on the rise and no doubt will impact consumer spending behaviour this Black Friday, this Christmas and beyond. Our latest data shows that half of UK consumers are looking to shop more consciously.
Shopping small
Over the pandemic, we saw a huge outpouring from shoppers wanting to support small UK businesses. On Black Friday last year, 40 items sold every second on eBay UK, with 90% of those purchases from a small business.
This Black Friday we expect consumer compassion for small businesses to show no signs of slowing, with 66% of the UK planning to shop from one.
But it is more than just a desire to support small businesses driving these purchasing decisions – shopping small can be a clever way to avoid supply chain issues and ensure your gifts arrive on time.
eBay UK alone is home to over 300,000 small business sellers, each with their own supply chains and each selling something entirely unique. Their size means that they can be more agile than larger businesses and can adapt to supply chain hiccups at speed.
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Accelerating out of crisis, transforming the future
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