Black Friday may provide an opportunity to get a deal ahead of the holiday season, but many buyers will anticipate shops to reduce prices by a wider margin this year as they tighten their belts in the face of a rising cost-of-living issue.
In a poll of nine countries, including Australia, U.S. consumers were the only ones to declare they expect to spend more this year, increasing their spending by 6%.
Consumers in the U.K. are expected to spend 18% less than those in France and Germany, while those in Spain are expected to spend 13% less.
According to research released this month by Boston Consulting Group, shoppers in Europe expect to spend nearly a fifth less during the yearly sale period this year as the effects of inflationary pressures weigh on consumer confidence.
The findings come at a time when the prognosis for the world economy is becoming more gloomy, particularly in Europe where the Russian invasion of Ukraine has hampered development and driven up energy prices.
Last Monday, the U.K.'s independent Office for Budget Responsibility said that the country was already in a recession.
This is putting more pressure on shops who are already working hard to rebound from a COVID-19 slump and draw in customers who are becoming more and more cost-conscious.
In the interim, many businesses have accumulated huge inventories of stock that they are now under pressure to sell as they attempt to address flaws and supply concerns from the past year.
Retailers may extend their discounts throughout the month, providing purchasing options for consumers with extra cash.
According to fresh data from Barclays Payments, one of the country's largest payment processors, U.K. transactions increased 3.8% year on year in the week preceding Black Friday.
This may indicate that consumers are more likely to spread out their purchases during the Christmas season, according to Kristy Morris, managing director of commercial solutions at Barclays Payments, who was speaking to CNBC on Thursday.
However, experts advise consumers to exercise caution when looking to take advantage of deals this holiday season.
Online hackers are known to "turn up the heat" during sales, especially when customers are under pressure to close a deal, according to Sans Institute's director for the U.K. and Ireland, John Davis.
According to research from Barclays, the weekend after Black Friday and Cyber Monday in 2017 saw a 34% increase in retail scams.
