52.9% Increase in Online Spending, High Street Struggles
- Online Black Friday sales expected to rise by £2bn
- Overall consumer spending down 12.4% compared to last year
- UK consumers predicted to spend £7.5bn over the weekend, down from £8.6bn in 2019
- 18,000 more retail stores expected to close this year
- Online shopping becoming increasingly dominant due to pandemic
Black Friday online sales are expected to surge by £2bn this year, with a 52.9% increase from £3.8bn to £5.8bn. Despite the rise in online spending, overall consumer spending is predicted to decline by 12.4% compared to last year due to ongoing lockdown measures affecting high street trade. A report by VoucherCodes.co.uk for the Centre for Retail Research (CRR) forecasts a total spend of £7.5bn over the Black Friday weekend, down from £8.6bn in 2019. This comes as the Local Data Company (LDC) predicts nearly 15,000 more outlets will be empty this year compared to 9,169 net closures in 2019. Anita Naik, lifestyle editor at VoucherCodes.co.uk, commented: ‘The new lockdown measures have significantly impacted the bricks-and-mortar retail sector for a second time this year, and Black Friday Weekend is becoming more of an online event as the pandemic accelerates the shift to e-commerce.’
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the predicted increase in Black Friday online sales and the overall decline in consumer spending due to lockdown measures. It cites sources for its data and includes expert commentary on the shift towards online shopping.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of COVID-19 on Black Friday sales and the shift to online shopping, but it could benefit from more analysis or context on the long-term trends and consequences of this shift.
Financial Relevance: Yes
Financial Markets Impacted: UK retail industry and e-commerce companies
Financial Rating Justification: The article discusses the impact of Black Friday sales on the UK retail industry, with predictions of a significant increase in online sales and a decline in overall consumer spending due to lockdown measures. This affects both physical stores and online businesses, as well as the financial performance of these sectors.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but there are mentions of negative impacts on high street retail due to lockdown measures and pandemic-related changes in consumer behavior.
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