Black Friday 2020 could see sales drop by nearly a quarter as Amazon Prime Day creates a 10-week discount “mega peak”.
Amazon’s long delayed Prime Day, due to take place next week, will spark one of the longest and most competitive periods of discounting British retail has ever seen, according to a new report from Wunderman Thompson Commerce.
This discounting “mega peak” will extend through Black Friday, which could see spending fall by 22 per cent compared to last year.
The extended discounting means more competition for a far smaller chunk of consumer’s disposable income, which has been decimated by COVID-19.
While Black Friday will see overall sales decline, according to the research, 66 per cent of customers will shop online this year, leading to a total online spend of around £3.7 billion.
However ParcelHero has warned that this significant boost in online spend, which could be 50 per cent larger than last year, will cause chaos for delivery companies.
According to the home delivery expert, the increased number of families who will be separated this Christmas plus a skills shortage of delivery drivers brought on by Brexit could cause already overstretched delivery networks to fail.
“With capacity already stretched, the impact of Christmas can’t be underestimated,” ParcelHero’s head of consumer research David Jinks said.
“ParcelHero had its busiest day ever just last week and online pure-play Ocado has overtaken Tesco to become the UK’s most valuable retailer. This year’s home delivery growth is unprecedented for both parcels and groceries.”
“With many families unable to get together this Christmas, more people than usual will be sending presents to loved ones and ordering their gifts online. We anticipate Christmas volumes could be 50% higher than last year.”