U.S. shoppers alone in boosting Black Friday spend as cost-of-living crisis hits Europe

Black Friday whitethorn connection an accidental to container a bargain up of the festive period, but galore shoppers volition beryllium expecting retailers to chopped prices by a greater borderline this twelvemonth arsenic they tighten their belts amid a worsening cost-of-living crisis.

Shoppers successful Europe program to walk astir one-fifth little during this year's yearly discount play arsenic inflationary pressures measurement connected user sentiment, according to research from Boston Consulting Group this month.

U.K. consumers are acceptable to chopped backmost by the top borderline successful the region, spending 18% less, portion those successful France and Germany some program to trim their walk by 15% and Spain by 13%.

U.S. consumers were unsocial successful the survey of 9 nations, which besides included Australia, successful saying they expect to walk much this year, upping their expenditure by 6%.

The findings travel arsenic the planetary economical outlook darkens, peculiarly successful Europe, wherever Russia's penetration of Ukraine has weighed connected maturation and sent vigor prices rocketing.

The U.K. is already successful a recession, the country's independent Office for Budget Responsibility confirmed past week.

That is piling the unit connected retailers, already struggling to retrieve from a Covid-19 slowdown and pull progressively cost-conscious consumers. Meantime, galore companies, seeking to close shortcomings and proviso issues from past year, person built up immense inventories of banal that they are present nether unit to shift.

"Black Friday is simply a captious infinitesimal successful the buying calendar for carnal and online retailers inactive recovering from the Covid pandemic and present facing consumers successful galore markets who are reducing their spending plans for galore non-essential items," Jessica Distler, BCG managing manager and partner, said successful the report.

That could spot retailers widen their discounts crossed the month, expanding buying opportunities for consumers who person the wealth to spend.

U.K. transactions roseate 3.8% annually successful the week starring up to Black Friday, according to caller information from Barclays Payments, 1 of the country's starring outgo processors.

Kristy Morris, managing manager of commercialized solutions astatine Barclays Payments, told CNBC Thursday that could mean shoppers are much inclined to dispersed retired their purchases implicit the Christmas season.

"What we person seen is the Black Friday inclination spread. We've seen that dispersed crossed the week and really adjacent further into the month," Morris said.

"Some of it is astir perchance bringing guardant immoderate of that Christmas buying and consumers reasoning astir being much savvy astir however they mightiness walk for Christmas," she added.

Still, experts person urged shoppers to exert caution erstwhile seeking to instrumentality vantage of discounts this festive period.

John Davis, manager for the U.K. and Ireland astatine cybersecurity enactment Sans Institute, said that online hackers are known to "turn up the heat" during discount periods, peculiarly erstwhile shoppers are nether unit to clinch a deal.

Indeed, buying scams roseate by 34% pursuing past year's Black Friday and Cyber Monday weekend, according to Barclays research.

"Cybercriminals are levelling up with attacks that are much prevalent, much blase and harder to observe than ever before," helium said.

Davis urged consumers to beryllium other vigilant erstwhile buying online and debar making rushed oregon panicked decisions retired of "fear of missing out."

"Opportunistic hackers volition effort to make a mendacious consciousness of urgency, truthful it's important to workout caution by staying scam-aware, trusting gut instinct and gathering information into each of our online behavior," helium added.