Cautious Optimism Among Consumers as Black Friday Approaches
Signs of optimism are emerging among consumers despite ongoing economic uncertainty and a mixed response to the Chancellor’s Budget.
Nearly one in four consumers (24%) plan to increase spending on non-essential items during the golden quarter (October to December), up from 21% in Q3.
Q. Now, thinking about your spending on non-essential items over the next three months, which statement best describes your intentions?
Source: Retail Economics, n=2000
Despite fragile financial confidence — with just under a third (32%) of consumers expecting their finances to weaken compared to 26% anticipating improvement — many are still willing to prioritise festive indulgence.
Concerns around rising mortgage and rent costs, alongside the potential ripple effects of higher taxes on businesses, are top of mind for consumers heading into next year. However, consumers have become adept at balancing financial pressures with carefully planned seasonal spending, turning to savvy shopping strategies.
Retailers will look to capitalise on pent-up demand during events like Black Friday and Cyber Monday, with over a third (36%) of shoppers delaying seasonal purchases in anticipation of discounts.
Categories such as Electricals, Clothing & Footwear, and Health & Beauty are expected to benefit most, emphasising the importance of compelling offers and targeted promotions.
As the season progresses, this cautious yet improving confidence underscores a balance between financial prudence and the desire to celebrate. By focusing on value, quality and meaningful connections, retailers can capitalise on increased willingness to spend and make this peak season a success.
Q. Have you delayed purchasing retail products in anticipation of Black Friday discounts?
Source: Retail Economics, n=2000
