UK set to spend £4.9 billion in Black Friday and Cyber Monday sales
Black Friday and Cyber Monday sales have become key events on the UK’s shopping calendar. This year, according to new research from Gocompare.com Credit Cards, consumers will spend an estimated £4.9 billion (£175 per household) on bagging bargains in the weekend-long sales commencing Friday 25 November.
The survey of over 2,000 UK adults found that 34% of people will check out this year’s sales; a fifth have bought things in past sales and 9% are planning to use the sales to buy most of their Christmas shopping. While the average spend per household in this year’s sales is £175, 7% say they will spend in excess of £500 bagging Black Friday and Cyber Monday bargains.
Nearly a quarter (24%) of those surveyed said that they research the items they want to buy ahead of the sale, with 19% saying they hold off making big purchases until the sales.
However, the survey also revealed that Black Friday and Cyber Monday is set to leave the UK with a massive financial hangover. Nearly one in 10 (9%) said that the mega sales cause them to overspend or buy things they don’t really need – meaning the country will have as much as £441 million worth of buyer’s remorse once the sales are over.
When asked about how they plan to pay for their shopping, a third said they would use a debit card, 19% will fund purchases through cash, 24% by credit card, while 10% said they have put money aside specifically for Black Friday and Cyber Monday.
The survey also looked at how people plan to shop. Just over half (51%) will look to buy deals online, 24% will get their bargains on the high street, and 14% plan to shop via their smartphone.
Matt Sanders from Gocompare.com Credit Cards said: “Our research shows that British shoppers have wholeheartedly embraced the Black Friday and Cyber Monday sales to bag bargains and kick-start their Christmas shopping. But rather than saving them money, the hype around the sales can tempt some people to buy items that they don’t need or can’t afford.
“In addition to researching the best deals on Black Friday and Cyber Monday, bargain hunters should take time to think about the best way to pay for their shopping. Credit cards can be a great way of spreading the cost of sale items. A 0% credit card for purchases can help you to spread the cost for your shopping over a certain amount of time with no additional interest. Likewise, a 0% balance transfer card could help you cope with a financial hangover by letting you pay off your purchases over an extended period of time.
“In both cases, you need to be careful to repay the debt before the introductory terms end or you’ll have to start paying interest. Set up a repayment plan to ensure you pay off the balance of the card before the introductory period ends, and remember to check your cards terms and conditions.
“Buying items priced between £100 and £30,000 with your credit card will also give you protection under the Consumer Credit Act. So if you buy a faulty laptop or TV and the retailer refuses to refund your money, the credit card company will reimburse you.
“There are some circumstances where Section 75 protection may not apply, such as where an additional cardholder makes a purchase, spending via payment services or group buying sites like PayPal, Amazon Marketplace and Groupon or purchases through an agent or third party.
“However, if you’re not disciplined about your spending and repaying your credit cards, you could end up paying a lot of interest and accumulating debts that you will struggle to pay off.”