Black Friday confronts a Christmas spending squeeze in Britain

By Daniel Okafor

Thirty-one percent of British shoppers plan to cut back on spending this year, according to new research from brand research agency Hall & Partners, as the cost-of-living crisis takes a toll on disposable income.

Hall & Partners' research puts Christmas presents first in line for savings. The agency found that 39% of shoppers cannot afford to spend as much on gifts this Christmas. Nearly half, 46%, will prioritise experiences over gifts as they look forward to catching up with friends and family.

Hall & Partners' research places Black Friday before a more cautious customer. The agency notes that retailers have traditionally used its deals to persuade shoppers to loosen their purse strings, and it identifies clear cynicism toward promotions this year.

Black Friday loses discount confidence

Among consumers spending less on Christmas, confidence in Black Friday runs low. Hall & Partners found:

• 20% believe Black Friday sales do not represent good value.
• Only 4% believe Black Friday deals always offer good value.

Consumers show slightly more trust in general deals and promotions, but Hall & Partners still finds limited confidence. Among the same cost-cutting group, 25% think promotions can be good deals. Another 10% are convinced they do not represent good value.

Farid Jeeawody, senior vice president at Hall & Partners, said: “People still believe in the joy of Christmas, but the magic of Black Friday deals is starting to lose its sparkle.”

Hall & Partners' results separate celebration from discounting. The findings suggest consumers still value Christmas, but no longer see Black Friday as a novel, exciting discounting period. Their priorities have shifted toward experiences and smaller gift budgets.

How consumers will fund Christmas

Hall & Partners recorded four payment choices for paying for Christmas this year:

• 37% will use disposable income.
• 29% will use savings.
• 12% will use credit cards, spreading the cost over several months.
• 10% will use Buy Now Pay Later (BNPL), spreading the cost over several months.

The Hall & Partners data puts savings and deferred payment alongside disposable income. It shows why retailers cannot treat the festive budget as separate from consumers' wider cost pressures.

The experience opportunity

Travel and entertainment are the experience-led categories Hall & Partners identifies as most resilient to cost-cutting.

Jeeawody said:

“At a time when consumers are cutting back on gifting and prioritising experiences there is a huge opportunity to tap into the emotions that brand experiences can create.

“Experience led categories such as travel and entertainment, we believe, are the most resilient to cost-cutting because they bring consumers something to look forward to and offer shared joy.

“Brands can learn from this and double down on the physical and digital experiences that bring connection, joy and value to consumers such as an immersive product experience, combining food and drink for a themed meal or an online digital advent calendar.”

Jeeawody's examples shift the proposition from a lower price to an experience with a purpose. The immersive product experience, themed meal and digital advent calendar all give shoppers something to anticipate and share. That mechanism matches Hall & Partners' finding that 46% of shoppers will prioritise experiences over gifts.

What does this change for Black Friday?

Based on Hall & Partners' research, Black Friday can no longer rely on discount novelty alone. The campaign arrives with Hall & Partners' findings showing 31% of British shoppers plan to spend less, 39% cannot afford to spend as much on gifts and only 4% of cost-cutting shoppers think Black Friday deals always offer good value.

For retailers, the answer is not to abandon discounts. Jeeawody's recommendation is to add physical and digital experiences that deliver connection, shared joy and value. Hall & Partners' figures show some support for general promotions among a quarter of cost-cutting consumers, but Black Friday needs a clearer experience-led reason to shop.

Black Friday enters the festive period with weaker consumer confidence and a smaller gifting budget. Retailers that pair price promotions with the shared, forward-looking experiences Hall & Partners highlights can give shoppers a reason to engage beyond the temporary price cut.