Global Black Friday shopping survey: Americans are more willing to spend than Europeans

This year's Black Friday comes at a time of global uncertainty and weakening consumer confidence. Many consumers have already felt the impact of the economic recession and the Russia-Ukraine war on their spending power, but the extent of this impact has differed for consumers in different regions of the world.

The Boston Consulting Group (BCG) recently surveyed more than 9,000 consumers in nine countries around the world, including Australia, Austria, France, Germany, Italy, Spain, Switzerland, the United Kingdom and the United States.

European consumers' Black Friday spending drops by nearly 20%

European consumer confidence has been hit the hardest, and Black Friday spending has shrunk the most, as energy prices have risen due to the war between Russia and Ukraine. Consumers surveyed by BCG in eight countries (Australia, Austria, France, Germany, Italy, Spain, Switzerland and the United Kingdom) generally said they planned to cut spending during Black Friday.

European consumers plan to cut shopping spending by nearly 20% during this year's Black Friday due to higher energy and food prices.

British consumers are expected to make the biggest cuts, with a reduction of 18%, while those in France and Germany both plan to reduce spending by 15% and in Spain by 13%.

The survey found that consumers' increased interest in certain categories may actually reflect their growing concerns about a recession. About two-thirds of respondents to the BCG survey said they will buy bargains this Black Friday.

Black Friday is an important time to boost sales for physical stores and online retailers that are still recovering from the COVID-19 pandemic, but consumers in many markets are now reducing their spending plans on non-essential items. This may allow retailers to extend discounts throughout the month, thereby increasing consumers' purchasing opportunities.

Americans plan to spend more than Europeans

In the nine countries surveyed, including Australia, only consumers in the United States said they expected to spend more this year, with spending increasing by 6%. American consumers' Black Friday shopping budget increased by 6% from last year to $445 per person.

In fact, consumers in all nine countries surveyed expect to spend an average of $355 this Black Friday, significantly less than in the United States.

The U.S. economy unexpectedly shrank for two consecutive quarters in the first half of 2022 as the Federal Reserve's anti-inflation rate hikes took a toll on economic growth and consumer confidence. Such concerns receded in October after government data showed gross domestic product grew at an annualized rate of 2.6% in the third quarter.

Overall holiday spending in November and December is expected to rise 6% to 8% from last year to $960 billion, according to the National Retail Federation, a retail trade association. While that would be about half the pace of last year, it would still exceed the average annual growth of about 5% in holiday spending over the past decade.

Whether 2022 actually turns out to be a year of economic contraction will depend in part on how much Americans spend during the upcoming holiday season.

"Consumers have become cautious, but they haven't stopped spending," said Jack Kleinhenz, NRF chief economist. "Although growth is not as high as last year, households are continuing to spend each month as more jobs, wage growth and savings support their finances and help them cope with higher prices."

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