Pricing Expert Warns This May Be The Most Expensive Black Friday Yet, But Kiwis Remain Undeterred
Featuring data captured from a new consumer omnibus survey* and PriceSpy's extensive data archive, the new Report delves into the impacts the ongoing cost of living crisis will have across this year’s sales season, to answer the fundamental questions on everyone’s minds.
Liisa Matinvesi-Bassett, New Zealand Country Manager for PriceSpy, says: "Black Friday is emerging as a pinnacle retail event, with consumer purchase interest soaring every year**.
“But, in a challenging economic landscape overshadowed by inflation and the cost of living crisis, critical questions need to be answered to help consumers and retailers better navigate this year's sale season successfully. Our latest Report aims to answer these hard-hitting questions, and more.”
Are Kiwis finding it tough?
Kiwis are being hard hit by the cost of living crisis
Key insights shared from this year’s consumer survey* in The 2023 Black Friday Report, reveal:
- A significant 94 per cent of survey respondents say they are impacted by the cost of living crisis, with nearly half (48 per cent) describing their situation as 'very impacted.'
- Additionally, 93 per cent say in light of the cost of living crisis, price increases have occurred across consumer goods, food and fuel.
Have costs increased - will this be the most expensive Black Friday yet?
PriceSpy’s research confirms price increases have happened
PriceSpy’s pricing research shows average standard prices have, in fact, increased this year**** across many popular shopping categories:
- Some 80 per cent of the shopping categories researched were found to be more expensive in 2023, compared to 2022****;
“Unfortunately, our pricing insights reveal average standard prices have surged across many popular shopping categories this year. For example, the average cost across the category of laptops rose 17 per cent, mobile phones by 12 per cent, LEGO by 11 per cent, and espresso machines by 11 per cent, says Liisa.
****PriceSpy’s average standard price by category: 1 January - 26 October 2022 vs 1 January - 26 October
With so many price points increasing, PriceSpy warns this could be the priciest Black Friday yet!
“Whilst it’s important to note that price points may be higher this year due to the wider impacts of the cost of living crisis and inflation, the discounts offered on Black Friday may still deliver better value opportunities for consumers compared to year-round prices, especially as we enter the more-expensive month of December, when prices typically increase further***,” says Liisa.
So, what’s likely to cost more this Black Friday?
Comparing last year's Black Friday discount to the average standard price across 2023***, PriceSpy shares its predictions on what might cost more this Black Friday:
“Some of the key categories expected to cost more this Black Friday include: headphones, laptops, home security cameras and monitors.
“Whilst these are all predictions, the only way consumers can be sure if a price is less expensive this Black Friday is by conducting essential price research,” says Liisa.
Will consumers, seeking economic relief, actually spend more?
Despite challenging economic times, shoppers are expected to shop- and spend more this Black Friday and Black Week!
Retailers can expect to be busy:
- Almost half of this year’s survey respondents (52 per cent) say they still intend to shop on Black Friday or Black Week this year, a figure consistent with last year’s findings;
And, Kiwis are looking to spend BIG:
- This year’s survey results also share that Kiwis plan to increase their spending on Black Friday and Black Week by 10 per cent, rising from $731 in 2022 to $806 this year;
- And, almost a third (32 per cent) plan to spend over $500 on Black Friday or Black Week this year.
"Contrary to expectations that the current cost of living crisis might dampen Black Friday spending, our survey shows the opposite. Consumers are projected to spend an average of 10% more during Black Friday and Black Week this year," says Liisa.
"A pivotal factor shaping spending behaviour is strategic thinking. Shoppers are utilising Black Friday discounts as a financial strategy in a generally more expensive market. For instance, our Report suggests New Zealanders plan to spend an average of $806 during the Black Friday period, signalling a possible delay of major purchases to take full advantage of these discounts."
But, others will be more cautious!
While a considerable portion of Kiwis are poised to shop this Black Friday, PriceSpy’s survey highlights growing caution among others:
- Two-fifths (43 per cent) of respondents indicate they're unlikely to participate in Black Friday or Black Week shopping, offering a 14 per cent rise compared to last year;
- And, amongst
those that aren’t planning to shop across any sales event,
financial concerns appear to be
- Two-fifths (43 per cent) of respondents say they 'can't afford to shop,' delivering an 11 per cent increase on last year;
- And, 35 per cent say they ‘need to save money’, marking a 14 per cent uptick on last year.
How do shoppers find out if a Black Friday price is more expensive?
Key advice from the shopping expert - Look at the price history, not the discount!
Liisa concludes: “With price increases present across many shopping categories this year, our key piece of advice for anyone looking to shop is to always carry out essential price comparison research using a free price comparison app or website, like PriceSpy.
“Rather than look at the percentage discount retailers are offering, use a price comparison site to look at a product’s price history, as this will share the true picture of whether a deal is worthy or if a price is more expensive this Black Friday.”
You can read PriceSpy’s 2023 Black Friday Report in full on PriceSpy’s Newsroom, to find out more about what to expect this sale season. And you can find the best Black Friday deals in one easy place on PriceSpy’s Black Friday page.
Notes to editor
Graphs and imagery
The PriceSpy consumer omnibus survey
**Kiwi Buying Interest - this graph reveals consumer purchase interest peaked on Black Friday last year on PriceSpy last year. Source: PriceSpy.
***PriceSpy’s Price Index shows a noticeable price dip across Black Friday. Prices rebound sharply thereafter, as Christmas approaches. PriceSpy’s Price Index is a daily updated chain index that tracks price changes across all categories, brands and markets over time. Products are weighted by popularity, determined by the number of clicks-out received and the number of stores offering the product. The index works much like a stock index, where daily price changes are used to calculate the accumulated index, and where company size corresponds to product popularity. Old products will gracefully disappear and new products enter the index. The index shows the relative price change of already existing products from the day before.
Black Friday Report
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