Black Friday consumer spending trends revealed by Checkout.com
Research on Peak Season shopping – Black Friday and Cyber Monday (BFCM) – in the UK released by leading digital payments company Checkout.com reveals this year’s upcoming trends. This data comes from a broader study analysing consumer trends driving the Digital Economy: Peak Season Trends 2024.
Bargain-hunting Brits are planning to expand beyond clothing, beauty and electronics for Black Friday Cyber Monday purchases, with new categories such as air travel and health gaining in popularity with younger generations:
- Air travel is forecast to see increased sales during BFCM this year, with 14% of the population intending to buy during peak season in 2024, up from just 8% saying they have purchased in peak season in the past (a 75% increase compared to previous years). Younger generations are driving this trend, with nearly a third (28%) of Gen Z (an 87% increase compared to previous years) and a quarter (24%) of Millennials intending to buy air travel during BFCM this year.
- A third (32%) of Millennials are looking to buy streaming services during BFCM deals – nearly double the UK average (17%). In fact, streaming is the most popular category for Millennials ahead of usual favourites clothing (31%), Beauty (30%) and electronics (29%).
- Healthcare and wellbeing is also high on UK consumers’ BFCM shopping lists, with 16% intending to buy products in this category, rising to nearly a third (29%) of Gen Z consumers.
- Clothing remains the most popular category, with a fifth (21%) UK adults planning to make a clothing purchase during BFCM, almost doubling to 40% of Gen Z adults intending to buy clothes during the peak sales.
Rory O’Neill, CMO at Checkout.com comments: “Traditionally Black Friday Cyber Monday deals have been focused on clothing, beauty and electronics. However, with a growing digital economy, we’re seeing this evolve. The increase in planned flight spend is fascinating – particularly when it comes to the younger generations, even in an era of conscious consumerism. Travel experiences rate high in priority and they are explored, discovered and made using social platforms. This reflects a growing cultural trend when it comes to travel – and how Gen Z takes a social-first approach to planning trips abroad.
It’s incredibly positive to see how British consumers are planning to spend around health – from private medical, to investing in their own wellbeing ”
Half of Brits buy gifts during sales
- When it comes to buying for others, UK consumers are also looking to sales to purchase gifts. Half (50%) of Brits are now buying presents for their partner when they see a bargain.
- Two thirds (34%) of this group buy gifts for their partner all year round when they see a bargain, with the remaining third (16%) specifically waiting for BFCM to buy gifts for their partner.
- O’Neill explains: “While BFCM is still a significant shopping period, we’re also starting to see a trend towards always-on retail sales. By understanding consumer shopping habits based on spending data, merchants can tailor deals to reach specific consumers at the right time and encourage conversions. In short, every day is a peak season sale opportunity – and retailers need to remember that during this peak season.”
BFCM subscription deals emerge as a strong customer acquisition tool for merchants
- Subscriptions are a good acquisition tool during BFCM, with half (49%) of Brits remaining subscribed after the deal ends because they wanted to keep the service
- Gen Zs are the most forgetful at cancelling subscriptions, with 38% intending to but forgetting, compared to just 19% of Baby Boomers.
Generational split on deal discovery, with TV ads losing their impact with younger generations
- UK consumers are still fairly traditional in how they discover BFCM deals, with a third (32%) finding out about deals via TV ads, followed by browsing marketplaces (31%) and using a search engine (29%).
- However, looking at younger generations, 40% of Gen Z and 43% of Millennials find out about deals via social platforms (compared to 24% across all UK adults).
- O’Neill adds: “This data speaks to the need to ensure marketing strategies are always built in mind with the right audiences in mind. Given Gen Z and Millennials are the most likely to buy during BFCM, it’s important to make sure marketing piques the attention of this group, in terms of both the message – and the channels. A tailored, not broad brush approach is always needed, as is remembering the critical role that social platforms play in engaging this community. This research is a stark reminder that merchants need to constantly review and refine their selling channels to avoid missing out on sales when targeting specific demographics with the deals that will appeal to them.”