Member Article

Shopping centre revenue dropped 21% drop YOY

Consumer spend dropped by 21% on Black Friday, according to Coniq, a European CRM and marketing insight platform for shopping centres.

As more retailers expand their Black Friday discount periods and move away from a single day of discounts, shopping centres experienced a drop in the amount of in-store visits on Black Friday. However, shopping centre revenue was up by 54% over the Black Friday weekend, suggesting that as promotions are extended throughout the peak trading period consumers see less reason to book off the day from work to visit centres and instead wait for the weekend to pick up a bargain.

Revenue was also up by 43% on Black Friday in comparison to the past two Fridays, showing that there is still an opportunity for retailers. In particular, the brands focused on luxury products saw the highest increase in revenue during Black Friday (32%).

The average customer spend per transaction decreased (12%) compared to 2015. This could be due, in part, to the UK economic uncertainty in light of Brexit, as well as discounting expected to continue throughout the whole of the peak trading season, removing the sense of urgency for customers to snap up the best deals in one trip. Male adoption of Black Friday was up from the previous year by (19%), and they spent more per transaction than women (£119 vs £105).

Ben Chesser, CEO at Coniq, commented: ‘Although, on the whole, Black Friday seems to be falling out of favour with shoppers year-on-year, we are still seeing a significant increase in revenue and visits during this weekend compared to previous weeks. Shopping centre tenants will continue to benefit from the event as revenues consistently increase, however, we will find that brands within centres will need to work closer with one another to ensure that customer interest is optimised via reward schemes and joint offers.’

This was posted in Bdaily's Members' News section by Reporter .