Black Friday – Bagging a Bargain or Conscious Consumerism, which takes precedence…?

Black Friday is among us! Posters have appeared, promotion emails have been sent and TV adverts are shouting about the discounts. We start compiling lists of the things we would like to purchase and make mental notes as we pass stores to revisit them when the day is upon us – this day being the opportunity to bring home the ultimate bargain.

Black Friday is a term used to denote the Friday after Thanksgiving in the United States. It represents the start of the Christmas shopping period by offering discounted prices, deals, and longer shopping hours. It is a long-awaited and beloved annual promotion with international appeal, even without the Thanksgiving angle, as it allows consumers to purchase gifts for themselves and loved ones at a more affordable price during a cost-of-living crisis. However, at the same time, society is already facing a myriad of environmental issues as a product of our affinity to consume.

Is Black Friday an opportunity for individuals to purchase long-awaited items at a discounted rate whilst giving an overall indication of the health of the economy, or is it promulgating excessive consumption in an age of environmental decline? This determination remains undecided, and is likely to remain as such, as society continues to debate whether Bagging a Bargain or Conscious Consumerism takes precedence…

Bagging a Bargain - An Opportunity to Spread Joy and Economic Growth

From Shopping Carts to Economic Charts

Black Friday functions as a large-scale litmus test of the economy, determining consumer confidence in a post-Covid era. Consumer spending during this time will give economists an understanding of the health of their respective economies in a cost-of-living crisis. It also provides a good indication of how Christmas will be expected to perform, as retailers use Black Friday as an opportunity to share Christmas merchandise to entice customers back again. However, with rising energy costs and consumer price inflation at its highest in 40 years, people need to spend more money to maintain their same standard of living.

?Hence, Black Friday becomes a vital occasion, as it provides a respite for consumers facing a reduced spending power due to decreased disposable income. The expectation is that when individuals have less disposable income, they will cut back on their discretionary spending. The interconnected nature of the economy means that a substantial drop in consumer spending can negatively affect employment, businesses, and consumers. Therefore, it is crucial to afford consumers the opportunity to purchase goods that they might not typically be able to afford in preparation for the Christmas period.

To Buy or Not to Buy - Economic Forecasts for this Black Friday

Some economists believe that discretionary spending is needed to continue driving economic activity in society, however market research suggests we don’t truly know how consumers will respond this year. This is evidenced by contrasting consumer spending predictions in the U.K. for 2023. Wunderman Thompson Commerce and Technology have predicted that Black Friday spending in the U.K. is set to increase by 7.5% from ￡171.66 in 2022 to ￡184.55 in 2023. Other sources, however, have provided predictive data that indicates that consumer spending will likely decrease this year from 2022. In an unprecedented period of social, economic, and political instability, it becomes harder to predict market trends and consumer spending. However, understanding consumer purchasing power is vital when inflation and interest rates continue to rise.

Web of Wealth - how Cyber Monday can contribute to sustained economic growth

Cyber Monday, by comparison, is a more recently introduced concept. Coined in 2005, Cyber Monday occurs the Monday after Thanksgiving, offering online shopping deals that rival those from the previous Friday. It was initially introduced to aid smaller companies and retailers in competing against the more prominent names during Black Friday. Currently, it allows retailers to capitalise on the beginning of the holiday discount period and extend one of the most profitable sales periods of the year, Black Friday. As a product of COVID-19, we have begun to see an increase in people favouring purchasing things online as it allows them to take their time and avoid the bustling streets and crowds of excited people. It acts as a sales boost to Black Friday, which will continue to drive business revenue and stimulate economic growth. Increased spending during this period means high consumer confidence, ensuring sustained economic growth…

Only time will tell what happens this year for both Black Friday and Cyber Monday. – their success will be indicative of the spending sentiment of the UK economy. In the coming weeks, as data is collected, we will revisit the discussion to determine whether we did in fact see a sustained increase in consumer spending, or alternatively, if the economic stressors of today’s society resulted in a decrease in spending and resulting consumer confidence.

Thank you for reading and don’t forget to check back here tomorrow for our discussion surrounding Conscious Consumerism, where we will explore the impact of Black Friday on the environment.

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Sources

Black Friday 2023 (wundermanthompson.com)

What's Black Friday? When It Is and Importance to Economists (investopedia.com)

UK spending for Black Friday forecast to fall to ￡5.6 billion | Evening Standard