Black Friday may offer an opportunity to bag a bargain ahead of the festive period, but many shoppers will be expecting retailers to cut prices by a greater margin this year as they tighten their belts amid a worsening cost-of-living crisis.
Shoppers in Europe plan to spend almost one-fifth less during this year’s annual discount period as inflationary pressures weigh on consumer sentiment, according to research from Boston Consulting Group this month.
U.K. consumers are set to cut back by the greatest margin in the region, spending 18% less, while those in France and Germany both plan to reduce their spend by 15% and Spain by 13%.
U.S. consumers were alone in the survey of nine nations, which also included Australia, in saying they expect to spend more this year, upping their expenditure by 6%.
The findings come as the global economic outlook darkens, particularly in Europe, where Russia’s invasion of Ukraine has weighed on growth and sent energy prices rocketing.
The U.K. is already in a recession, the country’s independent Office for Budget Responsibility confirmed last week.
That is piling the pressure on retailers, already struggling to recover from a Covid-19 slowdown and attract increasingly cost-conscious consumers. Meantime, many companies, seeking to correct shortcomings and supply issues from last year, have built up vast inventories of stock that they are now under pressure to shift.