Black Friday is tipped to become the busiest shopping day on record] as Nationwide Building Society predicts sales to be boosted by bargain hunters and World Cup football fans.
Britain’s biggest building society forecasts spending on Black Friday to be up by seven per cent on what was seen on the same day last year, with Nationwide members expected to make around 9.5 million payments on Black Friday 2022, compared to the 8.9 million transactions in 2021.
The expected growth, based on recent Nationwide debit and credit card spend patterns, follows last year’s peak in spending as people returned to normality in terms of shopping habits following two years of pandemic-enforced lockdowns.
Nationwide members are predicted to spend more than £319m on the day – equivalents to more than £222k per minute. Last year, they spent an average of £34 per transaction on Black Friday spending a total of £299m million on the day – equivalent to more than £208k per minute. That is a 55 per cent rise on the previous year’s spending (£193 million).
Despite an anticipated spike in total spending, rising living costs are expected to subdue some impulse spending, with consumer research1 conducted by the Society showing that a third (38%) say they will spend less this year. However, others will use Black Friday as a way to get discounts on things they need and to help spread the cost of Christmas. According to the research the average person will spend £223 on Black Friday, with two fifths (40%) saying they will use it to get Christmas presents at reduced price and a third (37%) using the sales to help with the rising cost of living.
The top five purchases this year include: clothing (50%), fragrances (36%), toys and games (35%), small electrical items (e.g., kettle or toaster (33%) and shoes (30%).
World Cup spending boost:
Black Friday 2022 coincides with England’s second World Cup game, where the Three Lions take on the USA. This is expected to further drive spend on the day. By comparison, during the Euro 2020 tournament, Nationwide saw transactions increase by 21 per cent and spending by nine per cent when England played. Backing this up, the Society’s research reveals nearly a quarter of fans (22%) will spend more on food and drink to watch the game at home while 13 per cent will spend extra watching the game in the pub and 12 per cent will bet on the game.
When it comes to paying for Black Friday purchases, 58 per cent will use their debit card or cash. However, a third (33%) will use credit cards or buy now pay later services, which for some could lead to debt problems in the new year.
And after purchasing something on Black Friday, nearly a third (31%) admit to taking it back days later. them taking or sending it back days later. This is perhaps unsurprising given more than half (52%) buy admit to impulse buying.
Mark Nalder, Director of Payment Strategy at Nationwide Building Society, said: “While the rising cost of living may subdue some of the Black Friday spending, we still expect it to be the busiest shopping day of the year for Nationwide members. Bargain hunters will be joined by fervent support for England as they face the USA in their second World Cup game.
“While many will be tempted by the discounts on offer, it is only really a bargain if it is something you want or need. Pressure on household budgets means that more will likely put their purchases on credit. Although credit cards can help spread the cost and offer additional protection, we would always urge people to be careful not to amass debt that they might struggle to repay in the new year.”
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