#5 Black Week insights: What last year’s trends tell us about 2024

Hello, and welcome back to Retail Radar—your source for all things retail!?

In this edition, we’ll learn from the past to best prepare for Black Week 2024. We’ll look at daily revenue peaks to changing shopping habits during 2023, based on 9+ million purchases in Sweden, Norway, and Denmark from November 20-27 2023.

We’ll also take a peak at consumer insights from the UK, the Netherlands, and Germany, ensuring retailers know consumer preferences across markets for Black Week.

Whether you want to refine your strategy or simply stay informed, we have you covered.?

Let’s dive in!?

Black Friday is still a thing

It's no news that Black Friday has expanded into Black Week, with some retailers starting their sales even earlier than that. This shift has, for example, made Singles Day’s more important and encouraged retailers to expand their offerings across Black Week and Cyber Monday.

However, looking at last year's data, one thing is clear: Black Friday remains the main event. Last year, Black Friday alone generated the highest revenue of the entire week!

But the momentum didn’t stop on Friday—Saturday saw the second-largest spike in revenue. This highlights how the weekend and Cyber Monday continue to play a crucial role in consumer spending. Smart planning and targeted offers for Friday—and the weekend—can make all the difference for retailers to maximize results.

Stores are still important during Black Week

Black Friday started as an in-store shopping event, while Cyber Monday focused on online deals. Today, the lines between the two are blurred, and both now have a lot of online activity.

Even so, in-store revenue consistently exceeded online sales throughout the week in 2023. The biggest difference happened on Saturday, November 25, when in-store revenue was 56% higher than online. On Black Friday, in-store sales were 39% higher than online sales.

But that’s not the only difference. Here’s a snapshot from Black Week 2023 (November 20–27):

• Total average receipt value: 859 SEK
• Online: 1,077 SEK
• In-store: 641 SEK?

This means that shoppers are turning to online channels for higher-value or premium item purchases. While the average number of items per receipt is similar—3.6 items for online purchases compared to 3.8 items for in-store purchases—the products bought online are, on average, 77% more expensive.

An omnichannel strategy is key for Black Week 2024. By offering seamless online experiences alongside compelling in-store promotions and events, retailers can effectively capture demand across both channels while tailoring offers to meet shopper preferences.?

Discounts and consumer expectations

According to Market, consumers have high expectations on Black Week 2024, anticipating an average discount of 38%. This expectation influences how shoppers plan their purchases, putting pressure on retailers to compete for every sale (which obviously makes it harder for them to be profitable).

When analyzing the average discount sizes from last year, it reveals significant changes in the sizes of discounts offered by retail sectors.

Top of the list: Fashion takes the lead with the highest percentage of discounts, with premium brands topping the category. Last year, this can be tied to the cost-of-living crisis, which made premium brands increasingly give in to Black Week bargain hunters and move stock from previous collections.

Bottom of the list: On the other hand, electronics, hobbies & DYI, and furniture offered more modest discounts.

For Black Week 2024, retailers should therefore aim to strike the right balance—maintaining profitability by offering competitive discounts that align with shopper expectations.

Loyalty should be rewarded

Black Week is an excellent opportunity to attract new customers and grow audiences. However, with the rush of acquisition, remember to focus on your most valuable asset: your loyal customers.

Loyal customers are the backbone of your business—they shop with you year-round, and during Black Week, they deserve to feel appreciated. Consider how your promotions can reward loyalty. Whether it’s a tiered discount structure, VIP perks for members, or personalized offers, showing your appreciation can turn loyal customers into lifelong fans.

Generational spending

When it comes to Black Week, Millennials and Gen X generate the most revenue. While all age groups show increased activity during Black Friday (November 24), Millennials and Gen X take the lead, contributing significantly to the week’s overall revenue.

Here’s how it breaks down:

1. Millennials consistently generate strong revenue, with a noticeable peak on Black Friday and steady spending throughout the week.
2. Generation X shows almost identical spending peaks as Millennials. This demonstrates that both groups are crucial for retailers during Black Week.
3. Baby boomers participate in Black Week deals, but do not prioritize the shopping event to the same extent as younger generations.
4. Generation Z shows some engagement, but their revenue impact is significantly smaller than that of Millennials and Generation X.
5. The Silent Generation exhibits minimal activity, as expected.

(Generation Z: 9–27 years old, Millennials: 28–43 years old, Generation X: 44–59 years old, Baby boomers: 60–78 years old & Silent generation: 79+).

So, to maximize your revenue performance this Black Week, concentrate your efforts on Millennials and Generation X with promotions that match their shopping preferences. Simultaneously, provide personalized options for other age groups to enhance engagement.

Looking at consumers in the UK, Germany & the Netherlands

To prepare for Black Week, we conducted a consumer survey to uncover shopping intentions in markets outside the Nordics. Here’s what we found:

Products in demand: Across all three markets, shoppers are eyeing the same top categories for Black Week:

1. Electronics
2. Fashion & Apparel
3. Home Goods

Interestingly, the majority of consumers haven’t planned their purchases for Black Week, creating opportunities for retailers to influence them with the right message and offer. Here’s the percentage of unplanned shoppers across the markets:

• The UK: 50%
• Germany: 44%
• The Netherlands: 50%

What influences their purchases? Beyond the FOMO of missing out on deals, the biggest driver is retail marketing campaigns. A third of consumers say campaigns impact their purchases (The UK: 29%, Germany: 31%, & The Netherlands: 29%).

This highlights a key takeaway for retailers: targeted and personalized campaigns are essential to stand out during Black Week. Seize the opportunity to connect with the right shopper at the right moment to drive sales.

If you want all the highlights from the survey, get your infographic here for the UK, the Netherlands, and Germany.

Sign up to get daily performance data, specific to your sector

Black Week is an unmissable opportunity to connect with consumers, boost sales, and grow your brand. But success doesn’t come without preparation—and data is your best ally.?

That’s why we’re offering Daily Performance Insights during Black Week 2024. With these insights, you’ll be able to:

• Benchmark your performance to others in your retail sector.
• Focused on revenue and discount sizes.