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UK Consumers Aim to Be Money-Savvy on Black Friday

By Rimma Kats
November 6, 2023
in Analysts Coverage, Holiday Shopping, Merchant
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The Enduring Impact of Embedded Finance on E-Commerce

The Enduring Impact of Embedded Finance on E-Commerce

As Black Friday approaches, a recent study from credit management company Lowell reveals that many UK consumers are taking a more money-conscious approach to their shopping, aiming to avoid any impulsive spending.

A big change in this shift in consumer behavior is in response to the current state of the economy and an increased awareness of personal finances.

Key Findings

According to the research, 45% of respondents said they intent to prioritize their financial health this holiday shopping season and overall, respondents plan to collectively spend £900 million less compared to a year prior. On average, UK consumers said they plan to spend 40% less per person this year compared to 2022.

While many consumers are in fact tightening up their purse strings, nearly three-quarters of UK consumers surveyed said they still feel pressure to open their wallets during the upcoming Black Friday sales. And that’s because the allure of discounted products and early Christmas gifts is proving hard to resist. Although 43% of respondents said that rising inflation has influenced them to be more cautious with their finances this holiday season, nearly a third said they feel the need to keep up with their friends and family when it comes to shopping for gifts. Nearly as many respondents said that they also feel pressure from various advertisements they see on TV and on social media.

A More Frugal Holiday Season

Overall, while spending will decrease this year, more consumers are keeping an eye out for deals. In fact, 15% of respondents said they’re planning to turn to second-hand websites, including Vinted and Facebook Marketplace to help source their holiday gifts.

“It’s encouraging to see people in the UK prioritising their financial wellbeing over the upcoming consumer-driven period,” said John Pears, UK CEO at Lowell in a prepared statement. “Although our report shows that many Brits still feel the pressure to spend on Black Friday and Cyber Monday, many people are choosing to be savvy with their money through means such as shopping on second-hand sites or researching for the best deals.”

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Tags: Black FridayConsumer SpendingLowell

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