UK shoppers are set to spend £10.1bn over the seven-day period around Black Friday as more retailers participate to shore up sluggish sales.
Retail sales from November 20 to November 27 are forecast to grow 3.8% and account for 10.4% of total spend in the golden quarter, according to GlobalData.
Although the retail event’s rate of year-on-year growth is set to slow, a higher number of retailers are expected to get involved in this year’s Black Friday promotions to make up for poor sales in September and October.
The homewares sector is predicted to record the highest rise in sales across retail, up 5.9%, while fashion, health and beauty and electricals are also expected to perform well.
However, cost inflation will likely mean that retailers will not be able to offer as competitive prices and Black Friday deals this year.
GlobalData retail analyst Eleanor Parr said: “Increased cost prices will mean retailers are unable to offer the level of discounts advertised in 2016, meaning demand may waver as consumers feel less inclined to make bargain purchases on impulse.
“As a result, retailers will need to be creative with how they advertise Black Friday promotions this year, for example promoting multi-buy offers or free gifts with purchases if they cannot afford to offer large discounts.”
The number of sales made on Black Friday (November 24) is predicted to fall year on year as more retailers extend their offers over a longer period of time in the run-up to the Sale day.
“In 2017 we expect more retailers to extend their promotional calendars to include the whole week before Black Friday in an attempt to stimulate demand as they continue to struggle this quarter,” said Parr.
“Furthermore, as more retailers advertise their Black Friday deals early, other players will be forced to participate to remain competitive.”