‘Despite the consumer gloom, retailers still need to prepare for a hyper-competitve Black Friday’

As so often happens, something that began in the USA has become a truly global phenomenon. The pre-Christmas mega sales events – Black Friday and Cyber Monday – have become absolutely key fixtures in the retail calendar all around the world. Here in Britain, YouGov’s latest research finds that a third (32%) of the adult population will make a purchase on Black Friday. No brand can afford to ignore a figure like that.

YouGov’s research indicates that 2024 is going to be a highly competitive mega-sales season. It seems that cost of living concerns are still weighing on the minds of consumers, and a quarter of them are planning to spend less than they did last year. Only one in ten said they were going to spend more. While this may sound disheartening for retailers, a significant portion – 28% – say they don’t yet know what they will do. That is the opportunity the top brands will be looking to seize in November.

A third (33%) of people hold off making essential purchases until they can access the Black Friday/Cyber Monday discounts

It is striking to see just how much consumer behavior is adapting to the mega sale calendar. Over four in ten (42%) of Black Friday and Cyber Monday shoppers hold off on making a luxury purchase in the hope that it will be available in a mega sale event offer. That means that for high-end retailers, getting these promotions right can be the difference between a good and a bad quarter.

However, mega-sales matter for everyone. A third (33%) of people hold off making essential purchases until they can access the Black Friday/Cyber Monday discounts. This seems to be further evidence that cost-of-living concerns are driving consumer behaviour this autumn.

The question that all retailers are going to want answering is who are the people to target for this year’s events? Our research did a deep dive into the profile of last year’s customers to find out. The first thing to note is that they were more likely to be under 55 years of age and belong to the middle- and higher-income groups. Half (51%) of them spent over £100, and only one in five (19%) spent less than £50. Clothes and shoes were by far the most popular items sold last year – almost half (49%) of the 2023 mega-sales customers purchased some.

Research found that the way to reach these consumers is pretty clear – it is all about getting digital right

It doesn’t come as a huge surprise that almost three quarters of mega sale shoppers (72%) said that discounts and deals were their motivation. Much more interestingly, nearly four in ten (38%) used the events to shop for Christmas. That means retailers need to think what these consumers are buying for other people as well as for themselves if they want to make the most of the opportunity.

The research found that the way to reach these consumers is pretty clear – it’s all about getting digital right. Social media plays a particularly strong role in driving awareness among those aged 18 to 34, with six in ten (59%) stating they are likely to notice mega sale events on this channel.

Finally, the key insight for retailers that the research picked up was that almost two thirds (63%) of last year’s mega-sales shoppers plan their shopping needs ahead of time. While having the perfect store or website layout in place is vitally important, it isn’t enough. Executing a great mega-sales season requires preparation and promotion, so that your customers are activated beforehand and include you in their shopping plans. For retailers that means the hard work starts now.

The brands that get this right will be the ones who really make the most the opportunities available in this hyper-competitive mega sales season.