West End braces itself for Black Friday spending boost
Retailers in London are bracing themselves for the start of the Christmas spending period as a swarm of bargain hunting Brits are set to hit the West End this Black Friday.
Unseasonable weather in both the summer and autumn battered the majority of retailers’ earnings over the first and second quarter of the year, so for many retailers the sales bonanza will be the final chance to rack in some profits before the end of the year.
Dee Corsi, chief executive at New West End Company, said that the firm’s forecasts suggest that Black Friday will “drive the first significant spike in consumer spending this festive season” on Oxford Street.
“This is largely being driven by squeezed domestic shoppers seeking out deals and discounts, as they continue to grapple with the cost-of-living crisis and high inflation,” Corsi explained.
“We know that it is the West End’s ability to deliver an incredible breadth of experiences, which cannot be replicated online, which has enabled it to remain resilient.”
Corsi said that she expects further traction on the iconic retail drag thanks to the return to HMV following a four year hiatus.
Corsi added: “That HMV has chosen Black Friday to return to Oxford Street will not be lost on either visitors or analysts.
“The retailer has long spoken of plans to transform its in-store experience with live gigs, signings and a focus on catering to music aficionado with vinyl and memorabilia.”
It is the latest signal of recovery on the West End, which was battered by the pandemic and the ongoing fight against a swarm of illicit American candy stores which moved into the region.
James Hardiman, senior analyst at the BRC, said that Black Friday is the “crucial peak trading period for the retail industry”.
He explained: “With around a fifth of retail sales in the final two months of the year, Black Friday is the crucial peak trading period for the retail industry.
“In-store, the West End will remain a popular shopping destination thanks to flagship department stores and festive decorations.”
“Black Friday has become a two-week rolling series of retail discounts rather than a single event, which means consumers have more time to grab some bargains ahead of Christmas, and it should also help to kick start the vital Christmas shopping season.”
But Hardiman said that the day will also be a crucial day for online shopping as people look to nab some deals from the comfort of their own home.
“Last year the proportion for non-food spending online reached 46.1 per cent, which was by far the highest of any month in 2022.”
“After a few months of slow sales growth, retailers are hopeful that the discounts and deals will encourage consumers to commit to seasonal shopping.
“However, expectations are not high after a difficult year, and the high cost of living will mean customers will likely hold back on spending on big ticket items.”
Jacqui Owens, director of lifestyle retail business at Google UK&I, said that she is not seeing any signs at the moment that Black Friday won’t be as big this year.
“It’s definitely been a nervous month or so I’d say for lots of retailers. But what’s been really interesting is that every year we do see the peak [in searches] start early.”
“We’ve now seen as of yesterday that Black Friday is eight per cent higher year on year, and we had our highest spike so far on Black Friday last Friday at 7am.”