Black Friday Deals Amid Rising Costs: Consumers Seek Bargains but Question Value

• 69% of consumers worldwide make use of Black Friday sales
• 64% question the actual value of promotions
• 45% worry about whether they will be able to cover holiday expenses

Due to rising living costs, consumers will approach the increased spending of the upcoming Christmas shopping season with caution. Therefore, they will be more eager to hunt for bargains during pre-Christmas sales such as Black Friday. At the same time, there is growing scepticism among consumers about the real value of sales, as evidenced by the EY Holiday Shopping Survey.

The survey, which covered 13,000 consumers worldwide, showed that 69% of respondents intend to take advantage of pre-Christmas sales (a proportion that rises to 76% among those under 27 and 79% among those with children). However, nearly two-thirds (64%) are sceptical about holiday sales, questioning the actual value of promotions, and a similar number (58%) believe that the products they want to buy are not actually included in the promotion.

The responses concerning the ability to finance Christmas purchases reflect reduced disposable income: 45% of global consumers surveyed worry about whether they will be able to cover their expenses in the upcoming holiday season; among Generation Z consumers (18-27 years old) this figure rises to 49%, and 57% plan to participate in sales due to their financial situation.

I would describe this year’s pre-Christmas sales customers as “prudent and astute”. During the shopping process, they intend to use a wide range of channels and technologies, they keep a distance from promotional and marketing offers and have their own opinion on the actual value of the products offered. – says Rafał Reif, EY Poland Partner, Leader of the Consumer Products and Retail sector.

Will pre-Christmas sales result in more purchases?

Christmas items appeared in stores around the world earlier this year than in previous years. Globally, the Christmas sales began in September and October, which is a reflection of intensified retailer competition for customers. However, more than half of the consumers surveyed (52%) said they will start their Christmas shopping later.

Many consumers expect better offers to appear with the following waves of seasonal sales, and sellers will be increasingly motivated to make discounts to clear their stock before the next calendar year. Another aspect is that many consumers put off such decisions to a later date – says Grzegorz Przytuła, EY-Parthenon Partner, Consumer Products and Retail Sector Expert.

60% of respondents claim that they will only buy products on sale or promotion this year, while 67% actively monitor market offers to make sure they get the best possible deals – this number rises to 73% among consumers with children.

Is carefree spending a thing of the past?

Respondents in this year’s survey are more consciously planning the amount and pace of Christmas spending, reflecting concerns about the ability to finance these purchases. Four out of five consumers (41%) over the age of 60 will use loans or credit cards to cover the cost of their purchases. “Buy now, pay later” solutions will play an increasingly important role in relieving the home budget during online and in-store shopping.

Consumers are more prudent this year in how they spend their money. They prefer to buy items that offer value beyond the Christmas season. For example, 34% of respondents plan to spend more on technology, and 58% plan to reuse Christmas decorations from last year. They are often giving up types of food and Christmas drinks which they consider to be too costly.

Many consumers approach Christmas shopping independently of sales: 48% of survey respondents say that if they find the perfect gift, they will buy it, regardless of whether it is on sale or not.

The pre-Christmas period is an opportunity for retailers to increase their market share. To turn these intentions into reality and attract consumers in the long term, retailers should understand and address the needs of their customers, who are seeking real value from discount product offerings – says Grzegorz Przytuła.

Between bricks-and-mortar and social media commerce.

The EY Holiday Shopping Survey reveals that most consumers (68%) plan to do their Christmas shopping in physical stores. Consumers want to see, touch, and physically experience the product before deciding to buy it – movements which are hard to recreate in the digital space.

However, the world of digital shopping is growing rapidly, and informed consumers are keen to use a variety of channels to optimise their shopping experience. Social media shopping platforms will be significant sales channels this season, especially among consumers in China – 50% of respondents from the Middle Kingdom plan to make purchases via “shoppable social media”, compared to 24% in the US and 17% worldwide. In Europe at the extremes are consumers from the United Kingdom (19.9%), and on the other – Italians, among whom only 10% of respondents use this sales channel.

Individual sales platforms increasingly integrate and complement each other. It is no longer enough for the retailer to be present on each of them, their distribution channels should complement each other and create a mutually linked ecosystem, extended with social media enabling direct contact with recipients – says Rafał Reif.

Future: Self gift, sustainable and second-hand?

Younger consumers are likely to be the most active shoppers in the upcoming holiday season. Approx. 40% of Generation Z respondents plan to increase their expenditure in nearly every category, from clothing to technology and intangible purchases which include positive experiences.

Younger generations prioritize sustainable products as they are more actively looking for brands that align with their values than any other group. More than one-third of Generation Z respondents (35%) plan to buy used products as gifts for others. They want to stretch their shopping budget, or invest in higher-quality items that they couldn’t afford if they were new. Some brands are already taking advantage of this trend, setting up or investing more in resale platforms of their own goods.

The mindset of the younger generation opens up a range of opportunities for retailers. Almost half of Generation Z respondents declare that they might purchase additional items for themselves while shopping online to receive free shipping (compared to 35% of people over the age of 60). Awareness of this tendency can drive additional purchases and increase retailer margins.

About the Survey

The EY Holiday Shopping Survey aims to track consumer moods and behaviours related to the holiday season. The survey includes the opinions of 13,000 respondents from Argentina, Australia, Austria, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, New Zealand, Republic of South Africa, South Korea, Spain, Sweden, UK and the US. The survey, which does not include Poland, was conducted from September 24 to October 7, 2024.