close
Share with your friends

Black Friday and Cyber Monday: bonanza or just hype, and what about the environmental impact?

Black Friday and Cyber Monday

Over a third of British consumers (37%) say they are intending to spend either the same or more (20% and 17% respectively) on Black Friday and Cyber Monday promotions, compared to last year. However, whilst only one in ten consumers say they’ll spend less, over two-fifths of Brits (42%) say they don’t engage in the sales bonanza at all, according to the latest research by KPMG.

1000

Also on home.kpmg

  • Over a third of Brits (37%) are intending to spend the same or more this Black Friday and Cyber Monday compared to last year, but over two-fifths (42%) say they don’t engage at all
  • Younger consumers, as well as those in London, the North East and South West, appear the most engaged and the primary focus will be on online, not in-store
  • Nearly two-thirds (61%) of consumers say they’re thinking more carefully about the environmental impact of their Black Friday/Cyber Monday purchases

Over a third of British consumers (37%) say they are intending to spend either the same or more (20% and 17% respectively) on Black Friday and Cyber Monday promotions, compared to last year. However, whilst only one in ten consumers say they’ll spend less, over two-fifths of Brits (42%) say they don’t engage in the sales bonanza at all, according to the latest research by KPMG.

The survey, conducted by Opinium on KPMG’s behalf, reveals that younger consumers continue to be the most engaged1. About a quarter (26%) of those aged 18 to 44 are intending to spend more on the promotions, compared to the average of 17% across all age groups.

Looking geographically, consumers in London, the North East and the South West appear more enthusiastic, with more consumers in these areas saying they intend to spend more than last year (29%, 21% and 21% respectively), compared to the national average of 17%.

Commenting on the latest findings and the significance of Black Friday and Cyber Monday for retailers, Paul Martin, UK head of retail at KPMG, said:

“There’s no denying that Black Friday and Cyber Monday have become firm fixtures on the UK’s retail calendar. Year-on-year shoppers have notably held off their purchases until the discounting begins. Furthermore, the event is no longer concentrated into just a few days, but in some cases now occurs across a few weeks, easing pressure on supply chains.

“We continue to see the divergence between those engaging and those not, both in terms of retailers and consumers. Some retailers have avoided the adoption of the American-born sales event altogether, no doubt having come to the conclusion that the juice just isn’t worth the squeeze, especially in light of wafer-thin profit margins at the moment. Meanwhile, with the event being predominantly focussed online, it is little surprise that younger tech-savvy consumers appear more motivated to bargain hunt online against the ticking clock.

“This year’s Black Friday and Cyber Monday will be closely watched, especially given the fact that there are fewer days between the key events and the primary Christmas trading period this year. We’ll likely see monthly sales in November down as a result, whilst December’s sales will likely boom. But the key questions will be whether the overall growth during the whole ‘golden quarter’ can make up for several months of poor trading throughout the year, and will slashed prices prove detrimental to the all-important bottom-line.”

A chance to buy Christmas gifts?

Of those planning to engage in Black Friday & Cyber Monday, over a third (37%) are looking to use the sales bonanza as an opportunity to buy Christmas presents. However, younger consumers were far more likely to do so, with as many as 54% of those aged 18 to 44 saying they were shopping for festive gifts.

Is the focus online or in-store?

Consumers will mainly be looking online, with 50% of respondents saying that that is where they are focussing their attention. Nearly a third (29%) say they are planning to look both online and in-store, but only 7% of respondents said they will be focussed on in-store promotions only.

Digging into consumer rationale further, those focussing online say they are doing so because: they believe they’ll get better deals (52%); they can shop while they work (21%) and because they have limited shops nearby (19%). Meanwhile, of the few that will be focussed on in-store promotions only, they stress that they like to see what they buy (74%).

What about the environment?

Nearly two-thirds of consumers (61%) say they consider or try to reduce the environmental impact of their Black Friday and Cyber Monday purchases. Indeed, more consumers say their purchases will be planned (37%) as opposed to being impulse-driven (21%). Furthermore, as many as 70% of consumers say they still use the product they purchased during Black Friday and Cyber Monday last year.

Commenting on the growing importance of sustainability in the consumer landscape, Linda Ellett, UK head of consumer markets at KPMG, said:

“We recently revealed that over two-thirds (67%) of Brits care more about the environmental impact of their daily consumption of consumer goods, compared to five years ago2.These latest findings suggest that Black Friday are Cyber Monday are no exception.

“Nearly all of us will have received oversized packaging riddled with plastic at one time, or thought twice about how the delivery of our purchases contributes to pollution, however convenient it may all seem. For consumers, the growing importance of protecting our planet has clearly prompted more strategic and planned purchases – whether that entails looking more closely at the product and the retailer’s environmental credentials, or fundamentally asking whether the product or service is actually a must-have.

“For retailers, showcasing the effort being made to be more environmentally-friendly is no longer a ‘nice-to-have’ it is a must. The coming years will bear witness to a tug of war between convenience and sustainability, and Black Friday and Cyber Monday won’t be overlooked, however luring the discounts may be.”

-ENDS-

Notes to editors:

1. KPMG UK’s 2018 Black Friday & Cyber Monday consumer poll findings can be accessed: here
2. In July 2019, KPMG UK revealed that over two-thirds (67%) of Brits said they care more about the environmental impact of the consumer good they buy today, compared to 5 years ago. The press release can be accessed: here.

For media enquiries, please contact:

Simon Wilson, KPMG Corporate Communications
T: 020 7 311 6651
M: 077853 73397
E: simon.wilson@kpmg.co.uk

Research Methodology:

KPMG UK commissioned research agency Opinium to poll 2,003 UK adults aged 18+ on questions relating to Black Friday and Cyber Monday. Results have been weighted to be nationally representative. The questions were in field between Friday 22 November and Monday 25 November 2019.

About KPMG in the UK

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 16,300 partners and staff. The UK firm recorded a revenue of £2.338 billion in the year ended 30 September 2018. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal