Black Friday, which begins next Friday, has developed into one of the major events for retailers in recent years, marking this date as the starting signal for the Christmas campaign. Its weight on the books of companies is already considerable, since it is estimated that a third of the sales of this period, the busiest of the year for sales, are made on this day and also on the following weekend as on the cyber monday.
But this year could be different. The inflationary escalation and the blow that has hit the purchasing power of the Spaniards threatens to reduce sales during this period. Not a few warn against it. On the consumer side, cash is expected to become tighter, but there will also be less willingness on the part of companies, which will offer fewer offers and prices beyond other seasons.
Report Black Friday & Cyber Monday in Spain, prepared by Google rocket digital and Shopify highlights some of those factors. It shows that each consumer will spend 200 euros that day, slightly less than last year when each Spaniard spent an average of 210 euros.
A scenario that, in addition to the increase in energy costs, has also been favored by the rise in interest rates that has triggered monthly mortgage payments. In fact, 71% of Google respondents say they are concerned about the cost of living increase in relation to their spending power.
According to the Google study for Rocket Digital, the Spaniards look at the price during Black Friday but depending on the product category. When it comes to sports and food, consumers are willing to pay more, so they save on technology products and clothing, the latter being one of the major claims of the time. For example, 42% of respondents assume that if the budget is cut, they will cut spending on this item.
The poll toon shows unsafe behavior by companies. “We’re seeing a lower capillarity of discounts in most stores, but with strong offers in a specific category or brand that help create a catch to later try to increase the number of products for each purchase,” explains the media director of Rocket Digital. Marta Sanchez. And he adds that for some products “price reduction will not be possible, although private label or local items have a better chance of being reduced than other products that depend on production in China or have high transport costs”.
In everything, from Rocket Digital, they point out that the percentages of discounts and offers of Black Friday 2022 depend on each company, the “stocks” accumulated by each trading company and the variable costs that each company supports. Well, it depends on the size of the company and what its capacity offers it.
The head of retail at Oliver Wyman in Spain, Beatriz Fernández, doesn’t see a big wave of discounts either. The expert points to the dilemma that companies will find themselves in, since, in the face of a slowdown in consumption, “the only way to boost sales seems to be through rebates,” the margin they normally had to execute offers, ” has been significantly reduced and, Despite the fact that other events of the year have experienced heavy discounts, everything seems to indicate that they will not be repeated on these dates ».
Something that the president of Acotex, Eduardo Zamácola, has already confirmed to this newspaper. The textiles leader was already anticipating a weak “Black Friday” in October as clothing stores were only able to offer limited discounts after months of little sales and not being able to launch the winter collection due to fall consumption and the high temperatures hitting in have recently started to decline.
The good forecasts do not come from the employment figures either. Temporary employment agency Randstad estimates that hiring for the Christmas campaign will fall by 17.3% this year. 402,040 contracts are signed for the 485,942 sealed in the same period of 2021.
However, the major distributors suggest that the 2022 edition of Black Friday will produce equal or better results than previous years. This is indicated by the companies belonging to Anged employers, including El Corte Inglés, Ikea and Tendam’s clothing brands (Cortefiel, Pedro del Hierro, Springfield…).
Specifically, the association points out that the discounts planned for “Black Friday” are a good opportunity for this stimulate many purchases that have delayed consumers waiting for better offers. Especially in the categories electronics, household appliances, furniture and living as well as fashion.
Regarding these last items, they estimate that the arrival of cold weather and the combination of discounts can help revive seasonal clothing sales, which have been delayed by the high autumn temperatures. “Also, it is foreseeable that many families will buy toys and gifts in advance during Black Friday, as the trend in recent years has shown.”