As Black Friday sales continue across the UK, we’re going to close up for the day.
We haven’t had the unseemly shop-floor scenes of 2014, as people scrapped to get their hands on the best deals. Guardian reporters hit the shops early this morning to find much calmer scenes, and small or no queues.
However, retailers are reporting a big surge in online sales, as people shop on their mobile phones to get the best deals.
Andy Brian, partner at retail specialist law firm Gordons, explains:
It’s no surprise that we didn’t have people queuing to get into stores like in previous years. This is partly because more retailers opted to spread out their deals over a longer period, but it’s also because of the growth of online and mobile shopping. Black Friday has still captured the attention of shoppers this year and it seems the appetite for a bargain is still there – but how consumers shop for those bargains is changing.
People don’t have to wait until the stores open. Instead, they can search for deals at home or on their way to work – and the online trading figures for the early hours of Black Friday seem to show this was the case more than ever this year.
The lack of crowds reminded one reader of the launch of the iPhone 7 at Apple’s Viborg store in Denmark:
That’s it for today. Thank you for reading the blog and for all your comments. Have a great weekend. AM
appliancesdirect.co.uk says customers are taking advantage of Black Friday to make savings on big ticket items.
Since midnight it has sold more than 4,000 blenders, over 2,000 washing machines, and 1,000 4K HD televisions.
Mark Kelly, marketing manager, says demand has been strong as consumers want to buy big ticket items now before consumer prices start to pick up next year:
We anticipated strong sales, but the popularity in cut price home appliances this year has surpassed our expectations. Shoppers have taken full advantage of thousands of pounds of savings on big ticket items in anticipation of price rises in technology early next year as a result of the exchange rate changes following the referendum result.
Amazon reported brisk online sales as a result of its latest deals, as part of its extended Black Friday sale which started on 14 November and with new offers launched every day since. The top deals running today include discounts on bestselling Alexa ‘hands-free’ devices Amazon Echo and Echo Dot, with Echo available for just £119.99, and Echo Dot available for just £39.99.
Doug Gurr, Amazon’s UK country manager, commented: “We’ve had a very positive customer response to the thousands of deals during our extended 12 day Black Friday Sale and customers have been snapping up lots of our great deals on offer since midnight.
From the company’s Peterborough distribution warehouse Paul Firth, Amazon’s head of music, said health and beauty products and toys were also doing well. Three of the top five best-selling items in its sports section were Fitbit Flex activity trackers (up to 50% off) while electric tootbrushes (up to 76% off) accounted for three of the top five beauty items.
Star Wars toys and games were also snapped up, alongside the Disney Rapunzel doll with glowing hair. Like other retailers Amazon has completely sold out of this year’s must-have toy, Hatchimals. “People are also buying practical and essential things such as PC memory cards and wi-fi extenders” Firth said.
Last year in the UK Amazon sold 7.4 million items on Black Friday - 86 items every second. “It’s too early to tell what the picture is” Firth added. “But it certainly all looks very busy. Busy, but ordered….” At Peterborough, the 1,000 staff had been bolstered by another 2,000 to ensure no hitches with picking and packing during this key trading period.
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Football clubs are embracing Black Friday, with many offering 20% off kit and other merchandise in their shops and online.
Leicester City, reigning Premier League champions, have got their own twist:
It's Blue Friday! Get 20% off all kit, in-store and online now! https://t.co/AVL24v51yo. #BlueFriday pic.twitter.com/CAMAZcmXfD
— Leicester City (@LCFC) November 25, 2016
Some more Black Friday stats, this time from Very.co.uk:
- 15 consoles sold every minute
- A smartwatch sold every 12 seconds
- 21 bottles of perfume every minute
- A set of curling tongs sold every 8 seconds
Currys PC World says it had more than half a million visitors to its website before 6am.
The two most popular products have been the Google Chromecast and the JVC 32C660 32” Smart LED TV.
Stuart Ramage, e-commerce director at Dixons Carphone:
We’ve been preparing for today for almost a year now to ensure the best deals for our customers. We continue to break records with orders already up 40% year-on-year since 2015, and as we predicted, shoppers are making the most of our stores being open early, but also placing orders by mobile devices with our highest ever mobile traffic share since Black Friday began.
Argos says its busiest hour so far was between 8am and 9am, when it received about 700,000 web visits (80% of which were on mobiles and tablets).
Popular products include iPads, PS4, xbox, Dyson vacuum cleaners and Beats headphones. It also expects TVs and toys to among the best sellers.
Lunchtime is expected to mark another peak, and then 5pm to 7pm as people make their way home from work.
Catherine Shuttleworth, chief executive at retail marketing agency, Savvy, is at the Argos distribution centre in Barton.
I’ve been here since 5.30am where there’s a sense of great calm and slick organisation despite this being the biggest and busiest day of the year for Argos.
With 800-plus staff on site during this peak week they’re expecting to pick over two million items and over 330,000 today. With business operating 24/7 the Barton distribution centre will process 15,000 parcels an hour alone.
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Retailers take alternative approach to Black Friday
Not all retailers are slashing prices today, with some taking a different approach to the US-inspired discount day.
The Guardian’s Sarah Butler reports:
Outdoor brands Patagonia and Braintree, as well as fashion chain FatFace, will be donating proceeds from the day to charity while Jigsaw and Next have both announced they will not be offering discounts. Meanwhile Berghaus is encouraging its customers to head outdoors as an alternative to the shopping frenzy.
Patagonia will be donating its entire global sales income from its own website and stores on 25 November to 80 grassroots environmental organisations around the world, including Surfers against Sewage and London Waterkeeper in the UK.
“As people think generously about family and friends, we also want to help our customers show love to the planet, which badly needs a gift or two,” the company said.
Full story here:
It may be Black Friday but for some, it’s all about Giving Tuesday.
Giving Tuesday (this year on 29 November) began five years ago in the US as an antidote to the consumerism of Black Friday and Cyber Monday.
The Charities Aid Foundation (CAF) brought it to the UK for the first time 2014, and is today calling on Black Friday shoppers to support a cause they care about next Tuesday.
Hannah Terrey, head of policy and campaigns at CAF, says:
After the frenzy of festive consumerism, #givingtuesday is a day for everyone to ‘do good stuff’ for a cause they care about, whether that’s donating money, volunteering time or simply talking about their favourite charities.
Just like Black Friday and Cyber Monday, #givingtuesday has now firmly established itself as a regular fixture in the festive calendar. It is great to see that even more people are planning to take some time over Christmas to give something back to a good cause.
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Shoppers heading into Poundland expecting some Black Friday bargains for less than £1 are in for a shock.
Poundland’s surprises include - for the first time - a range of products with price tags exceeding the standard £1. The discount retailer says it is the “perfect destination to snap up a bargain this Black Friday”, which include up to 65% on perfumes and fragrances, including a 50 ml bottle of Eau de Gaga which can be snapped up for just £8, compared with the RRP of £32.
Howard Archer, chief UK economist at IHS Markit, says the positive survey from the CBI suggests the economy is holding up in the fourth quarter, following growth of 0.5% in the third.
He does, however, add a note of caution:
A buoyant November CBI Distributive Trades survey points to consumers still splashing out in the fourth quarter, thereby boosting hopes that GDP growth will hold up well. Retailers will certainly be hoping that consumers’ willingness to spend holds up over the vital Christmas shopping period.
The major problem facing the economy – and retailers in particular - is that it looks inevitable that the fundamentals for consumers will progressively weaken over the coming months with inflation rising markedly due to the weakened pound and companies likely increasingly looking to hold down pay to limit their total costs. The labour market also looks likely to come under mounting pressure despite its current resilience.
In the near-term, there is the possibility that some consumers will bring forward purchases of big-ticket items in the belief that their prices are likely to rise appreciably over the coming months.
CBI: retail sales stronger than expected in November
Retail sales picked up pace in November and were stronger than expected according to the CBI’s latest snapshot.
Volumes increased at the fastest rate in more than a year in the 12 months to November, driven higher by sales of items including clothing, hardware and DIY.
The distributive trades survey found that 42% of retailers reported a rise in sales compared with a year ago, while 16% said they were down. The resulting balance of +26% was the strongest since September 2015, and far stronger than the +26% forecast by City economists.
Rain Newton-Smith, the CBI’s chief economist, said November was a “buoyant” month for sales.
With the later onset of cold weather, shoppers stocking up their winter wardrobe has helped to boost high street sales.
While we expect to see decent growth in the near term, retailers are keeping a close eye on price rises coming down the track and the impact on consumer spending.”
John Lewis reports strong start to Black Friday
John Lewis says it has seen strong demand from shoppers so far today.
The busiest period was between 8am and 8.30am, as people shopped on their way into work. The department store chain is taking five orders every second online.
There was a particular spike in transactions completed on mobile phones, up 21% between 8am and 9am.
Best-selling products:
- The Sonos Play 1 is the biggest technology seller, selling one every ten seconds
- The Lego Simpsons house is the top seller by value
- Marc Jacobs perfume is the strongest seller by number
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Sophie Conran crockery is the best seller in John Lewis’s home department Home
Dino Rocos, lead director and operations director at John Lewis, said online sales had “exceeded expectations”.
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Back to Black Friday. Jo Causon, chief executive of the Institute of Customer Service, comments on how the event is changing:
Black Friday in its original form – the manic one-day, in-store shopping experience – has already changed significantly over the past three years.
We’re seeing the continuation of that evolution in 2016 with retailers extending their sales either side of Black Friday, and the term ‘Black Fiveday’ becoming more commonplace, as well as a continuation of the trend towards online.
European markets are subdued
Little movement in Europe’s major markets this morning.
With thin trading expected in the US following Thanksgiving, investors elsewhere appear to be taking a bit of a breather:
- FTSE 100: flat at 6,831
- Germany’s DAX: flat at 10,690
- France’s CAC: +0.1% at 4,547
- Spain’s IBEX: -0.1% at 8,646
- Italy’s FTSE MIB: +0.2% at 16,531
- Europe’s STOXX 600: +0.1% at 342
Michael Hewson, chief market analyst at CMC Markets UK:
With US markets likely to be in a thin post-Thanksgiving mood there appears to be little in the way of positive drivers for European markets this morning.
This lack of interest has seen markets in Europe trading listlessly, weighed down on the one hand by weakness in the banking sector and a decline in oil prices ahead of next week’s OPEC meeting in Vienna.
James Knightley, senior UK economist at ING, says the second half of 2016 should prove rosy overall, but come 2017 the economy is likely to take a turn for the worse.
This is a firm growth story that again shows the economy has weathered the Brexit storm very well so far. The data flow so far suggests that the fourth quarter should also post a decent growth rate, but we still expect a substantial slowdown in 2017.
Our main concern relates to a squeeze on household spending power brought about by a sharp pick-up in inflation that isn’t matched by wage increases. We also expect a slowdown in hiring and investment by businesses as Brexit uncertainty kicks in and the political pressure rises once Article 50 is triggered.
Here is a breakdown of how different parts of the economy performed in the third quarter, compared with the second. It grew by 0.5% overall (and 2.3% annually).
- Services sector output: +0.8%
- Industrial production: -0.5%
- Construction output: -1.1%
- Household spending: +0.7%
- Business investment: +0.9%
- Government spending: +0.4%
- Exports: +0.7%
- Imports: -1.5%
The ONS has said there is no clear evidence yet to suggest the Brexit vote has had an impact on the economy.
Darren Morgan, head of GDP at the ONS, has commented on this morning’s second estimate of growth.
He makes the point that although business investment grew in Q3, most of those spending decisions will have been taken before the referendum, when the UK was expected to vote to remain in the EU:
Investment by businesses held up well in the immediate aftermath of the EU referendum, though it’s likely most of those investment decisions were taken before polling day.
That, coupled with growing consumer spending fuelled by rising household income, and a strong performance in the dominant service industries, kept the economy expanding broadly in line with its historic average.”
Rising household incomes powering UK economy for now. Will this continue if predictions this wk of prolonged squeeze on wages prove correct? https://t.co/XpscSFzpN3
— Katie Allen (@KatieAllenGdn) November 25, 2016
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Breaking: UK growth confirmed at 0.5% in Q3
The Office for National Statistics has just published its second estimate of third-quarter growth, confirming a 0.5% increase in GDP.
Business investment grew more than expected, by 0.9% over the quarter compared with expectations of 0.6%. It was a slight dip compared with business investment growth of 1% in the second quarter.
More soon.
Black Friday is also a thing in Brazil apparently.
Photo evidence from São Paulo:
Also today... UK GDP and CBI retail survey
In other news, we have a couple of bits of interesting data coming up in the UK this morning.
At 9.30 the Office for National Statistics will publish its second estimate of GDP in the third quarter. It is expected to confirm that the economy grew 0.5% between July and September, unchanged from the first estimate.
The ONS is also expected to confirm an annual rate of growth of 2.3% in the third quarter.
The second estimate will reveal new data on the spending side of the economy, and will offer a glimpse on firms’ willingness to spend in the months following the June Brexit vote. Business investment is expected to rise by 0.6% in the third quarter.
At 11am the CBI will release its distributive trades survey for November. It is expected to show a slowdown in retail sales growth compared with October.
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Nick Bubb, independent retail analyst, gives his view on Black Friday:
Well, it remains to be seen how busy the high street will be today, but the much-dreaded “Black Friday” sale promotions this week will undoubtedly pull a lot of business forward from December, at lower margins, and it’s tempting to agree with the comment to the BBC by Peter Ruis, the boss of fashion chain Jigsaw, that Black Friday is a “complete and utter deception”…
Here’s our latest news story:
Retailers have shifted their approach to Black Friday since it arrived here in 2010 (thanks to Amazon).
This year many BF discounts are not single-day offers but promotions that spread over days and weeks, with a bigger focus online.
PCA Predict says there have been record breaking online transactions this morning, up 21% on last year between midnight and 7am.
East London is home to the savviest shoppers, with the highest number of online transactions before breakfast, followed by Croydon and Birmingham.
Mobiles have been the most popular device for deal-hunters so far but PCA Predict expect this could change to desktops over the day as consumers head into work.
The top five busiest online shopping regions according to PCA:
- East London
- Croydon
- Birmingham
- Leicester
- Rotherham
Back here in 2016, Black Friday appears to have moved online:
The madness of Black Friday in Harringay captured by @levenephoto pic.twitter.com/Z6odXWvSO4
— hilaryosborne (@hilaryosborne) November 25, 2016
First man to leave Sainsbury's on Black Friday is carrying ... three baguettes
— hilaryosborne (@hilaryosborne) November 25, 2016
Heading to the Westend in search of some Black Friday buzz..
— Zoe Wood (@zoewoodguardian) November 25, 2016
My colleague Rupert Neate captured some of the madness of 2014 in this short video. Well worth a watch:
Black Friday today is a far cry from the scenes we saw in stores in 2014, when there was an unseemly scramble for bargains such as televisions.
Here’s a reminder from two years ago:
*collective nostalgia for unseemly trampling incident in Asda Wembley* #blackfriday
— Bryan Roberts (@BryanRoberts72) November 25, 2016
Guardian reporters have been out and about since the early hours, joining the Black Friday bargain hunters.
My colleague Sarah Butler says its been “more of a saunter than a scramble” at Tesco Extra in Streatham:
While online retailers were busy, stores were off to a slow start. At the Tesco Extra in Streatham, south London, there were only 11 people in the queue when the supermarket opened at 5am - not many more than the number of security guards.
Some of those queuing had been there since 4.30am and were surprised how few people had turned up compared to last year.
Tony was queuing up for a Hatchimal after being unable to get one for his kids online. “I’ll either go home a hero of If they haven’t got one I’ll be home in bed in half an hour.”
Most of those in the queue were planning to pick up a TV from the large pile just inside the door. But it was more of a saunter than a scramble once the doors opened.
Michael, who bought two TVs, said: “This is quiet, very calm. Last year at Sainsbury’s it was crazy. I thought it would be a real rabble again.” He said he was buying himself a TV for the second year in a row as the one he got last year broke.
Martin, the store manager at Tesco in Streatham, said he was expecting sales to build through the day into the afternoon. He said hundreds more TVs would be delivered over the weekend. “It will give us additional spend later on when people come in to do their normal shop,” he said.
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We had about 20 folk here at Tesco. All very quiet now. #Black Friday looks set to be an online event again.
— Emma Simpson (@BBCEmmaSimpson) November 25, 2016
Argos readies Black Friday 'war rooms'
John Rogers, the new chief executive officer of Argos, told BBC Radio 4’s Today programme that there had been 500,000 visits to the retailer’s website in the first hour of online trading between midnight and 1pm - up 50% on last year.
He expects peak traffic between 7am and 10am as people shop on their mobile phones on their way to work. Rogers - the former finance director at Sainsbury’s which has taken over the business - was speaking from Argos’s distribution warehouse in Burton-on-Trent, as part of a whistlestop ‘national tour’ of its stores and facilities in the run-up to Christmas.
For Black Friday itself, Argos has set up three “war rooms”. One will monitor and tweak deals, one will oversee systems – standing ready to tackle any technical glitches - and the third will oversee communications with shoppers.
Rogers predicts that Argos will take 70% or more of its orders online on that day, compared with 50% during normal trading, and that the company is better prepared for Black Friday than last year after rigorously testing its systems.
Black Friday gets underway
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Black Friday is here again, but this time without the shop-floor stampedes.
Retailers are instead reporting a surge in online traffic as shoppers seek out the best bargains at the discount event that began in the US but has been adopted by the UK in recent years.
Argos said there were half a million visitors to its website in the first hour of Black Friday trading.
So far we haven’t seen the queues and chaos in shops that characterised Black Friday in 2014. It’s much more orderly this year.
We will be bringing you updates on this, and other developments, as they happen.
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