A new study by credit management company Lowell shows that Brits are planning on being more money-conscious rather than impulse buying on Black Friday 2023.
In fact, 45% confess they want to prioritise their financial well-being, and it’s predicted that they will spend £900 million less than last year, with 40% less average spend per person compared to 2022.2
However, with Black Friday and Cyber Monday fast approaching, the promise of reduced prices by retailers on this year’s top tech, best-selling beauty products, and early Christmas gifts, has left almost three quarters (74%) of Brits feeling pressure to spend money during the flash sales to prep for the festive period.
What pressures are people facing to spend this Black Friday?
Despite the rise of inflation influencing 43% of Brits to be more financially conscious over this festive period, others are still feeling the pressure to spend. Almost a third (29%) feel pressure to keep up with what friends and family are buying, whilst a combined 28% feel pressure from advertising on TV and social media to buy in the Black Friday and Cyber Monday sales.
Are people researching for cheaper deals this year?
Over a quarter of bargain hunters (27%) will be doing their research by monitoring the price of an item before the sale, and only making a purchase if there is a good discount. It’s clear that Brits are being more money-savvy this Black Friday, as just 17% plan to follow influencer recommendations and only one in ten (9%) intend to impulse buy.
Are Brits improving their spending habits for the festive period?
Encouragingly, the number of Brits planning to buy more than is needed over the festive period has dropped from 34% last year, to 30% in 2023, with a third of people (33%) planning to not exchange gifts with their families and friends.
However, with ever-growing inflation and cost increases in the cost-of-living crisis, 32% feel they will still spend more than they can afford in November and December this year, compared to 28% in 2022. To combat this, 15% have admitted they will use second-hand sites such as Vinted and Facebook Marketplace to source their gifts.
With Black Friday falling on what, for many of us, is the final payday before Christmas, it’s all too easy to get pressured into spending more than you can afford in the sales. Lowell recommends considering the following five tips to spend well over Black Friday, Cyber Monday and the festive period:
1. Don’t be impulsive, make a list of the things you need and stick to it. Sticking to your list means that you’ll be saving rather than spending in the long run.
2. If you have a planned purchase in mind there are useful tools online that check how much a product has actually been sold for throughout the year to find its cheapest price.
3. Plan a festive budget to prioritise essentials throughout Christmas, so you know exactly what you have to spend, and how much you need to save to get ahead in January
4. Refer to your budget when feeling pressure from social media, TV adverts, or friends and family so you can give an instant yes or no to buying depending on your allocated funds.
5. Utilise second-hand sites such as Vinted or Facebook marketplace to find your desired purchases before spending on a Black Friday sale.
John Pears, UK CEO of Lowell UK said “It’s encouraging to see people in the UK prioritising their financial wellbeing over the upcoming consumer-driven period.
Although our report shows that many Brits still feel the pressure to spend on Black Friday and Cyber Monday, many people are choosing to be savvy with their money through means such as shopping on second-hand sites or researching for the best deals.
As at any time of the year, we’d like to remind anyone feeling financial pressure to reach out for support, and a list of organisations who can help can be seen at https://www.lowell.co.uk/help-
For more information about the findings and advice on how to manage finances on Black Friday, visit our blog https://www.lowell.co.uk/
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