PwC: Click and collect key to Black Friday sales
Who will be the winners and losers during a Black Friday lockdown? Click and collect will be the key to £750 million of Black Friday sales for UK retailers – despite England and Scotland still placed in its second lockdown, according to PwC.
PwC predicted a rise in online spending particularly for retailers who can provide a click and collect service. “This year, click and collect will be important. Not only is up to £750m of sales expected through this channel, but it can also help alleviate pressure on home delivery channels,” comment PwC.
“In an ideal world, retailers that provide omni channel offerings such as click and collect would also be able to give customers a seamless experience,” says PwC’s report, Black Friday and Cyber Monday – 2020.
PwC predicted that with most physical stores closed, consumers are expected to do 88% of Black Friday shopping online this year, up from 77% in 2019, with the greatest penetration of online spending coming from 45-64-year-olds (93%).
“This channel shift is something we’ve witnessed most of the year and is at least partly responsible for a record net loss in chain stores. In February, 20% of all retail sales were online. In May, it was 34%,” outlines the report.
According to PwC while some retailers have avoided discounting in the past, that would mean missing out on a significant minority of shoppers. “Even with fewer people shopping, 38% of all consumers are looking for a deal, rising to over 50% in the key spending demographic of 25-44-year-olds.”
Then and now
Before lockdowns in England and Wales, Black Friday spending was estimated to increase by 8% this year - from £7.8bn to £8.4bn. But that all changed in a matter of days when the UK government announced a second lockdown.
This year’s Black Friday sales in the UK are predicted by PwC to fall by £6.2bn - a 20% decline vs last year. However, PwC predicts that those interested in Black Friday are expected to spend more because of the second lockdown.
According to a survey by PwC, consumers said their Black Friday spending would rise by 8% (from £293 to £316) from last year, with 26% wanting to treat themselves with money saved from COVID-19.
“This could be why those in the north west, who have had the strictest local restrictions for longest, were expecting to be the biggest spenders (£445 each). To put in context, it’s more than double the spend of Yorkshire and the Humber (£220), the south west (£207) and Wales (£222),” comments PwC.
PwC predict men have more interest in electricals and technology and intend to spend more than women (£373 vs £244). Those in the 35-44-year bracket are the highest spending age group (£429), expecting to spend more than double over 65s (£201).
More consumers are bringing forward their Christmas shopping, with almost a third looking to buy presents over Black Friday. This intention is even higher in women (36%).
The top trend for consumers is shown to be electricals and technology due to several high-profile launches including the iPhone 12, PlayStation 5 and Xbox Series X although it is still below 12% below the 2019 spending.
The only shopping categories to have recovered from last year is health and beauty (up 4%), children’s clothing (up 8%) and Christmas stocking fillers up by 3%.
“This year, it seems Black Friday isn’t just about finding a bargain - it’s also about making sure Christmas shopping is done early, avoiding crowds and overcoming possible last-minute delivery problems,” says the report.
G7 Summit guide: What it is and what leaders hope to achieve
Unless you’ve had your head buried in the sand, you’ll have seen the term ‘G7’ plastered all over the Internet this week. We’re going to give you the skinny on exactly what the G7 is and what its purpose on this planet is ─ and whether it’s a good or a bad collaboration.
Who are the G7?
The Group of Seven, or ‘G7’, may sound like a collective of pirate lords from a certain Disney smash-hit, but in reality, it’s a group of the world’s seven largest “advanced” economies ─ the powerhouses of the world, if you like.
The merry band comprises:
- The United Kingdom
- The United States
Historically, Russia was a member of the then-called ‘G8’ but found itself excluded after their ever-so-slightly illegal takeover of Crimea back in 2014.
Since 1977, the European Union has also been involved in some capacity with the G7 Summit. The Union is not recognised as an official member, but gradually, as with all Europe-linked affairs, the Union has integrated itself into the conversation and is now included in all political discussions on the annual summit agenda.
When was the ‘G’ formed?
Back in 1975, when the world was reeling from its very first oil shock and the subsequent financial fallout that came with it, the heads of state and government from six of the leading industrial countries had a face-to-face meeting at the Chateau de Rambouillet to discuss the global economy, its trajectory, and what they could do to address the economic turmoil that reared its ugly head throughout the 70s.
Why does the G7 exist?
At this very first summit ─ the ‘G6’ summit ─, the leaders adopted a 15-point communiqué, the Declaration of Rambouillet, and agreed to continuously meet once a year moving forward to address the problems of the day, with a rotating Presidency. One year later, Canada was welcomed into the fold, and the ‘G6’ became seven and has remained so ever since ─ Russia’s inclusion and exclusion not counted.
The group, as previously mentioned, was born in the looming shadow of a financial crisis, but its purpose is more significant than just economics. When leaders from the group meet, they discuss and exchange ideas on a broad range of issues, including injustice around the world, geopolitical matters, security, and sustainability.
It’s worth noting that, while the G7 may be made up of mighty nations, the bloc is an informal one. So, although it is considered an important annual event, declarations made during the summit are not legally binding. That said, they are still very influential and worth taking note of because it indicates the ambitions and outlines the initiatives of these particularly prominent leading nations.
Where is the 2021 G7 summit?
This year, the summit will be held in the United Kingdom deep in the southwest of England, with Prime Minister Boris Johnson hosting his contemporaries in the quaint Cornish resort of Carbis Bay near St Ives in Cornwall.
What will be discussed this year?
After almost two years of remote communication, this will be the first in-person G7 summit since the novel Coronavirus first took hold of the globe, and Britain wants “leaders to seize the opportunity to build back better from coronavirus, uniting to make the future fairer, greener, and more prosperous.”
The three-day summit, running from Friday to Sunday, will see the seven leaders discussing a whole host of shared challenges, ranging from the pandemic and vaccine development and distribution to the ongoing global fight against climate change through the implementation of sustainable norms and values.
According to the UK government, the attendees will also be taking a look at “ensuring that people everywhere can benefit from open trade, technological change, and scientific discovery.”