24 JANUARY, LONDON: Exclusive insights from Ve Global (“Ve”) indicates that retailers can no longer rely on the traditional Christmas sales calendar, thanks to accelerating consumer spending patterns caused by Amazon and Black Friday.
Analysis from Ve’s Global Retail Report, showed a significant decline in both online sales and traffic across key sales events throughout the Golden Quarter (1st Nov – 7th Jan). January Sales witnessed a major decline in online sales (-29%) and traffic (-19%) during the first week of January when measured against the Golden Quarter average.
Delivery Cut-Off Day (21st Dec), which usually causes a late flurry in sales, also failed to materialise with sales plummeting by 31%. Ve analysts believe this is attributed to not only record Black Friday spending in the UK, which rose to 352% compared to an average day, but the spill-over effect of the Amazon Black Friday Week campaign, which began a full week (16th Nov) before Black Friday itself.
Ve data showed online spending the week preceding Black Friday, was up by 66% compared with the average Golden Quarter day. Boxing Day sales managed to buck the trend, as UK retailers saw 18% more sales compared to the Golden Quarter average.
Morten Tonessen, CEO at Ve, said: “Amazon’s Black Friday shocked the market into life earlier than expected and put spending at odds with the traditional festive calendar. With many retailers struggling to compete, there was an earlier start to the discounting which resulted in shopper fatigue that impacted long-established sales events. These events may even lose their place in the modern retail calendar.”
The report also reveals enormous opportunities for retailers with the digital resource to handle the online rush over the Black Friday period. Online retailers saw 4 times the number of sales on Black Friday, compared to an average day, showing that the ecommerce market is stronger than ever.
The figures also highlight the international potential for UK retailers, with the expansion of Black Friday and Cyber Monday into new markets. The Nordics registered the highest increase in sales (1189%) of any region, while markets such as Russia (408%) and Italy (568%) clocked up significantly higher spending figures than normal.
Baroness Michelle Mone OBE, a non-executive board member at Ve, said: “Simply starting earlier may earn a competitive edge in the short term but this comes with risks of its own. The key lesson from last year’s Golden Quarter is to plan your digital strategy carefully, identify and take advantage of prime days and times in the continuously evolving retail calendar.”
Notes to Editors
Link To Full Report: https://www.ve.com/black-friday-2017
About Ve Global
Ve exists to inspire our client’s customers throughout their online journey, regardless of business size or sector. Founded in 2009, Ve started life developing basket recovery email technology. But that was just the beginning. Our appetite to predict and respond to consumer behaviour in the digital age led us to develop award-winning technologies, that attract the right audience, with the right message at the right time.
Today, we serve 10,000 clients across 18 territories, with our consumer-first solutions ensuring every customer enjoys the tailored and intuitive online experience they deserve.
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