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Black Friday: Slow start at stores as sales switch online Black Friday: Sales switch online on discount day
(about 1 hour later)
The Black Friday sales have begun, but early signs are that UK stores have seen smaller crowds than last year as sales switch online The Black Friday shopping frenzy has shown signs of moving online, analysts say, with no repeat of last year's chaos in some stores.
Stores opened their doors early and offers were put online overnight, with analysts predicting record sales.
Consultants Experian and online retail group IMRG are forecasting online purchases will hit £1.07bn, the first time they have passed £1bn in one day.Consultants Experian and online retail group IMRG are forecasting online purchases will hit £1.07bn, the first time they have passed £1bn in one day.
Visa Europe said £1.9bn could be spent online and in-store on its cards alone. Stores opened early, but there were smaller crowds than a year ago.
Online activity is said to be up, but expectations are for a longer period of discounts and shopping.
Last year's Black Friday saw shoppers fighting over bargains, websites crashing and delivery companies struggling to cope.Last year's Black Friday saw shoppers fighting over bargains, websites crashing and delivery companies struggling to cope.
The discount day originated in the US, where it takes place the day after Thanksgiving and kick-starts the Christmas shopping period. The discount day originated in the US, where it takes place the day after Thanksgiving and kick-starts the Christmas shopping period. It has since spread, not only to the UK, but also with similar sales in countries such as Brazil and India.
Retail analyst Nick Bubb said, "It looks as if Black Friday spending has been more spread out this year and more weighted to online, but every indication is that the combined event will be bigger than last year overall. It is still dwarfed by China's Singles Day - the world's biggest online shopping event. On that day earlier this month, Chinese e-commerce giant Alibaba reported sales worth 91.2bn yuan ($14.3bn; £9.4bn), a 60% increase from last year.
Online shopping
In the UK, retailers are expecting Black Friday to be the biggest shopping day of the year. Visa Europe said £1.9bn could be spent online and in-store on its cards alone.
There were some queues for early opening, but early data suggests there was more interest in internet sales.
Some discounts were posted on retailers' websites from midnight and online sales in the first hour of the day were more than double last year, according to data from PCA Predict.
Cashback website Quidco said it had seen a 50% rise in clicks during the morning, compared with last year, with a particular rise in activity for sports retailers.
Retail analyst Nick Bubb said: "It looks as if Black Friday spending has been more spread out this year and more weighted to online, but every indication is that the combined event will be bigger than last year overall.
"It is too soon to say whether the retail sector will be any better off in net terms once the dust settles.""It is too soon to say whether the retail sector will be any better off in net terms once the dust settles."
A spokesman for Tesco said it had been very busy so far with early shoppers behaving well. More comprehensive data on shoppers' Black Friday spending will be published late on Sunday or early next week.
The police had warned shops to ensure they had carefully thought out security plans so they could avoid a repeat of last year's trouble.
Analysis: Emma Simpson, BBC business correspondentAnalysis: Emma Simpson, BBC business correspondent
It could not have been more different from last year.It could not have been more different from last year.
At Curry's in Brentford this morning, there were fewer than two dozen shoppers queuing for bargains. The manager told me more folk were ordering online and picking up in store later. At Currys in Brentford this morning, there were fewer than two dozen shoppers queuing for bargains. The manager told me more folk were ordering online and picking up in store later.
Overall, Black Friday seems a bit more subdued. It is clear retailers have learnt the lessons from last year. Security has been beefed up. Tesco's in-store deals, for instance, have been very tightly managed to avoid a repeat of last year's chaos. A number of retailers have been running Black Friday deals for the last few days to try to avoid a massive peak in orders today.Overall, Black Friday seems a bit more subdued. It is clear retailers have learnt the lessons from last year. Security has been beefed up. Tesco's in-store deals, for instance, have been very tightly managed to avoid a repeat of last year's chaos. A number of retailers have been running Black Friday deals for the last few days to try to avoid a massive peak in orders today.
But it will still be a huge, probably recording breaking day for sales. The question is, is this the peak for Black Friday in the UK? Last year was the first time retailers really embraced this US tradition and, for many, it simply distorted Christmas spending instead of delivering bumper profits.But it will still be a huge, probably recording breaking day for sales. The question is, is this the peak for Black Friday in the UK? Last year was the first time retailers really embraced this US tradition and, for many, it simply distorted Christmas spending instead of delivering bumper profits.
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Ebay is expecting nine million British consumers to log on during the 24-hour period and for 25 items to be sold every second. Some retailers have decided not to take part in the event this year. Supermarket chain Asda, which started Black Friday promotions in the UK in 2013, and Primark are among them.
Gary Booker of Carphone Dixons said the retailer had brought in 40% more stock to cope with the predicted number of shoppers, but he admitted the cheapest prices that consumers will find in the year will still be on Boxing Day.
However, supermarket chain Asda, which started Black Friday promotions in the UK in 2013, and Primark have decided not to take part this year.
David Blair, of global brand consultancy Fitch, said the fact Asda had pulled out of Black Friday in the UK suggested its US parent company, WalMart, did not think Black Friday had a future in the UK.David Blair, of global brand consultancy Fitch, said the fact Asda had pulled out of Black Friday in the UK suggested its US parent company, WalMart, did not think Black Friday had a future in the UK.
Some analysts feel the event has distorted Christmas spending, pulling it forward at a time when retailers traditionally charged full prices.
James Miller, senior retail consultant at Experian Marketing Services, said: "There is little doubt Black Friday has dramatically changed the way people shop in the run-up to Christmas and has created an expectation of deep discounts that arguably did not exist before."
A report by LCP Consulting suggests almost a third of retailers in the UK and US think Black Friday is "unprofitable and unsustainable".A report by LCP Consulting suggests almost a third of retailers in the UK and US think Black Friday is "unprofitable and unsustainable".
John Hannett, leader of the Usdaw shopworkers' trade union, said last year's Black Friday sales resulted in a two-thirds increase in incidents of verbal abuse, threats and violence against retail staff. There have also been some signs of a backlash against the relentless marketing drive from retailers.
There has also been some signs of a backlash against the relentless marketing drive of Black Friday.
One online campaign entitled Buy Nothing Friday suggests that, instead of shopping, people should "go for a walk and enjoy the crisp autumn breeze". Meanwhile, the Booksellers' Association is encouraging independent book shops to run "Civilised Saturday".One online campaign entitled Buy Nothing Friday suggests that, instead of shopping, people should "go for a walk and enjoy the crisp autumn breeze". Meanwhile, the Booksellers' Association is encouraging independent book shops to run "Civilised Saturday".
'Spiky' period 'Care needed'
Some analysts feel the event has distorted Christmas spending pulling it forward at a time when retailers traditionally charged full prices. Consumer group Which? warned shoppers to be careful.
James Miller, senior retail consultant at Experian Marketing Services, said: "There is little doubt Black Friday has dramatically changed the way people shop in the run-up to Christmas and has created an expectation of deep discounts that arguably did not exist before. "There will be a whole host of deals available on Black Friday but not all of them will be genuine," said Which? editor Richard Headland.
"Offline retailers in particular need to plan very carefully for this new 'spiky' festive period. While Black Friday offers the potential for a short blast of extra sales volume, this will be at the expense of margins during the most crucial period of the trading year."
Consumers association Which? also warned shoppers to be careful.
Which? editor Richard Headland said: "There will be a whole host of deals available on Black Friday but not all of them will be genuine."
Paul Green, business development manager at retail systems integrator, Tryzens said Black Friday should be got rid of altogether.Paul Green, business development manager at retail systems integrator, Tryzens said Black Friday should be got rid of altogether.
"Black Friday makes little sense in the UK. Without Thanksgiving, the event's focus point, the decision to concentrate so many resources and discounts on a Friday in November seems arbitrary at best and significantly disruptive at worst." "Black Friday makes little sense in the UK. Without Thanksgiving, the event's focus point, the decision to concentrate so many resources and discounts on a Friday in November seems arbitrary at best and significantly disruptive at worst," he said.
Are you planning to go out shopping for bargains on Black Friday? Or will you be avoiding the High Streets? Tell us your experiences by emailing haveyoursay@bbc.co.uk.Are you planning to go out shopping for bargains on Black Friday? Or will you be avoiding the High Streets? Tell us your experiences by emailing haveyoursay@bbc.co.uk.
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