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Black Friday remains a pivotal event in the retail calendar, but this year’s outcomes varied significantly across regions. With mixed results from the UK, US, and global markets, brands can glean valuable insights to shape future strategies. Here's a breakdown of the trends and actionable advice for retailers.
UK: A Tough Market
The UK experienced a 3% decline in sales, reflecting the impact of rising household bills, reduced government support, and waning consumer confidence. While food and drink sales rose by 2.4%, non-food categories saw a 2.1% drop. However, the luxury market proved resilient, showing year-on-year growth. This trend contrasts with the struggles of middle-market brands, which are increasingly squeezed as consumers gravitate toward either premium or budget options.
US: Strong Growth
In the US, Black Friday painted a much brighter picture. Adobe Analytics reported $17.5 billion in sales, representing a 3.4% year-on-year increase. The adoption of AI played a significant role in improving the shopping experience, helping consumers make quicker and more confident purchases. E-commerce platforms, particularly Shopify, performed exceptionally well. Shopify saw global sales reach $11.5 billion, with an impressive 14.6% growth in transactions and an average order value of $108.56.
Global Insights
Globally, Shopify underscored its dominance. The UK ranked as the second-largest market for transactions after the US, highlighting the platform’s global reach. Black Friday peak activity on Shopify hit $4.6 million per minute, illustrating the sheer scale of consumer activity. Despite the UK’s broader economic challenges, its retailers leveraged Shopify to capture significant sales during the event.
Key Takeaways for Brands
For retailers that performed well, now is the time to plan for January to maintain momentum. Strategic investments in organic sales channels can help offset ad costs, while segmenting Black Friday shoppers allows for more tailored engagement. Optimising stock is also critical—using inventory tools to forecast demand can ensure popular products remain available while slow-moving items are cleared efficiently.
For those with underwhelming results, it may be time to rethink timing. Running sales earlier or at alternative times can help brands stand out from the crowd. Returning to fundamentals—identifying customer needs, refining product positioning, and pricing effectively—can also provide a clearer path to success. Additionally, creatively managing stock, such as bundling items or offering free gifts, can help improve ROI and reduce excess inventory.
Conclusion
Black Friday continues to offer significant opportunities, even in challenging economic climates. The contrasting outcomes between the UK and US highlight the importance of adaptability and strategy. By leveraging insights from this year—whether it’s exploring new markets like the US, integrating AI, or refining customer engagement—brands can position themselves for sustained growth.
Check out the full podcast episode here.