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Inflation and prices could limit spending on Black Friday shopping

Valencia (EFE).- So-called Black Friday shopping may be limited this year due to the economic situation caused by rising prices and inflation, interest rate uncertainty and lack of household liquidity, although expectations are “relatively optimistic” for large stores, while while small businesses remain concerned about adjusting their margins.

Black Friday, which marks the beginning of the December commercial campaign and puts consumers into “Christmas mode”, is celebrated on the coming weekend, the last of November, and every year it increasingly affects all sectors and is extended for the whole week with the “preBlack” or other denomination.

Discounts 30 and 40%

Discounts are between 30% and 40%, with specific promotions that may be higher, and clothing and accessories, sales of which have been very weak so far due to the lengthening of summer weather, will have “good discounts” and sufficient stock to meet demand. according to the representative of Anged (Association of Large Distribution Companies) in the Valencian Community, Joaquín Cervero.

Anged is “relatively optimistic” in terms of the value and impact of this promotion: the consumer is becoming more informed and has more opportunities to compare and see “what, when and where” while sitting at home on the couch, and usually responds fairly well to these offers. .

“We put ourselves in Christmas mode,” Cervero EFE comments on the prelude to the month of shopping, which for stores turns into an opening period on Sundays and holidays, starting this Sunday, November 27, Tuesday, December 6 and Sunday, December 18. permitted throughout the Community, in addition to Sunday 4 December, Thursday 8 and Sunday 11 December for high tourist areas.

For the small business association Confecomerç, Black Friday 2022 is marked by lower margins for companies due to ever higher structural costs and does not offer a sales balance comparable to pre-pandemic.

A group of shoppers look at clothes during an advertising campaign. EFE/Gustavo Grillo/File

Less aggressive online campaign

He understands that the campaign will be less aggressive in e-commerce than in previous years due to shipping costs, resulting in “fewer parcels and more diluted action on larger platforms.”

The decrease in the purchasing power of consumers in the last weeks of the year worries sellers, who suffer from rising structural and variable costs, and in some cases (butchers, bakeries) from fluctuations in prices for the main raw materials for making their products. products, which, together with energy costs, complicates the maintenance of enterprises.

Local businesses have prepared sweepstakes and promotions and expect an increase in demand for electronics, small appliances, household and personal appliances, especially outerwear and accessories.

Confecomerç recalls the positive impact that small business purchasing has on both the territory and the environment, and highlights the values ​​it brings to the customer: proximity, specialization, advice and individual attention.

How much are we spending?

The Valencian consumer will spend a maximum of 150 euros on Black Friday purchases (15% less), while 47% plan to buy less than in other years due to the economic situation caused by rising prices and inflation, while 30% will not buy any or goods. because they don’t need any product, because they believe these promotions only encourage consumption, or because they don’t believe they are real discounts, according to a survey conducted by the Valencian Community Consumer Union.

This year, the percentage of respondents who say they will spend less doubles (from 22% last year to 41%), and the number of undecided also increases.

Compared to other years, the preferred products are clothing and footwear, appliances, household appliances and perfumes and cosmetics, as well as an increase in personal purchases due to the improvement in the COVID situation, ranging from 34% last year to about 50%.

Young people what they buy most often

Young people buy the most online (over 70%) and admit that at a high percentage, over 60%, if they find a good product, they will be able to buy it.

Citizens are informed mainly about offers via the Internet and social networks, with an increase of almost 10 points compared to other years.

Vicente Inglada, secretary of the Consumers Union, said that during the period of such offers, discounts and promotions, consumer rights “should not and cannot disappear”, and therefore the quality of products is of great importance.

Hiring

In the Valencian Community, 8% more contracts are expected for Christmas and Black Friday, just over 177,000, which is moderate and lower than in recent years, according to Adecco, which estimates 20% of them are intermittent fixed. .

These contracts will cover e-commerce, distribution, retail, logistics and transportation, consumer goods, food, hospitality and tourism.

Anged doesn’t have specific data on sales force hiring or sales support at large stores, but he estimates they will be at 2021 levels but still below the pre-pandemic level of 10%.

Christmas contracts begin to be included in the week of Black Friday and extend after December to January sales.

recommendations

– Avoid impulse buying, both in person and online.

– Make a planned list of needs, personal items and gifts.

– Limit your spending budget.

– Analyze offers and their advertisements to avoid pitfalls and scams.

– Don’t get carried away only by the percentage of the discount: you need to compare the price before and after the discount.

– For online purchases, you have 14 days to return an item. It is better to choose a prepaid card, limited credit cards or Paypal, keep web pages secure and avoid bank transfers if we do not trust the seller.

– Product warranties are the same as always. EFE

By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org