Online sales are set to hit record levels on Black Friday as high street footfall declines
The proportion of sales made online is likely to hit its highest level ever in November, boosted by a Black Friday internet shopping rush and fewer high street shoppers.
Internet sales are expected to exceed 20 per cent of total retail sales for the first time ever this month, according to research by real estate firm Colliers.
The company also predicted that November online sales are about to set a new record of £2bn, 15 per cent higher than last November and 50 per cent higher than the 2018 monthly average.
Richard Perks, director of retail research at Mintel, said: “The proportion of retail sales via online is very much higher in November and December than at the beginning of the year."
"But what really matters in the context of stores versus online is the share of online sales of the internet-only retailers – the pure players – and that is around half of the total," he added.
But the growth in internet sales comes amid a changing Black Friday landscape, as retailers extend discounts into the weekend.
Research from ShopperTrak predicts a 6.5 per cent decline in footfall this Black Friday compared to last year, but said the volume of shoppers will be higher on Sunday as deals are carried across the whole weekend.
In addition, Black Friday has altered spending patterns in the run-up to Christmas. While retailers traditionally built up promotions from November onwards, many now launch deals for Black Friday before returning to full price for the festive period.
Mark Charlton, Colliers head of UK research, said: “Offering significant price reductions in what should be the prime pre-Christmas trading period can cause in-store stock shortages, returns issues and margin erosion at a critical time in the retail calendar.
“During a period in the year when retailers should be operating at full margins, they are essentially giving away profits in order to compete for a higher share of consumer spending.
“As Black Friday turns from a one-day promotion into an extended event, this issue will only continue to worsen.”
A number of retailers have chosen not to participate in the sale event as a result of the adverse effect on business.
Marks & Spencer, Asda, Primark and Ikea are among the retailers that will not be offering Black Friday deals.