The Mail on Sunday

Retailers braced for £2bn ‘Black Friday’ frenzy

THEY may be overhyped US imports, but Black Friday – and its online counterpar­t Cyber Monday – are now as much part of the British Christmas countdown as an advent calendar. Here, SALLY HAMILTON presents our Black Friday battleplan.

- By NEIL CRAVEN

SHOPPERS are forecast to spend £1.9billion in a single day as online retailers turn the heat on high streets on Friday.

The sum will include £721million spent online, an increase of 17 per cent on the ‘Black Friday’ frenzy of last year, according to card payments firm Visa Europe. The £1.2billion spent in face-toface transactio­ns will represent a 4 per cent rise on last year.

However, both increases suggest that enthusiasm for Black Friday, an import from the US, is levelling off. Last year online sales increased 44 per cent on the year before and face-to-face spending increased by about 15 per cent.

The lower prediction­s for face-to-face transactio­ns, which include not only sales in high street shops but also in restaurant­s and pubs, suggest that many stores are resisting promotions on the day, for fear of disrupting pre-Christmas spending and losing money. There is also evidence that the promotiona­l event leaves many shoppers unhappy.

A quarter of shoppers said that they regretted purchases on the day and returned at least some of the items bought, according to a survey by retail consultanc­y Blue Yonder.

Meanwhile, retail adviser Clear Returns has calculated that Black Friday will prompt £160million of returns at a total cost of £180million, as many products sent back are difficult to resell. Asda has already backed away from heavy promotions on the day, and fashion chains including Jigsaw say they will not discount at all.

But retailers selling electrical goods in high volumes, such as Amazon, Dixons and Shop Direct, which owns Very.co.uk and Littlewood­s, plan to offer major deals. Many are shipping in goods with lower specificat­ions for the event.

WHAT IS BLACK FRIDAY?

BARGAIN hunters wanting to cut the cost of Christmas are hoping for juicy discounts from retailers on Black Friday. This is the first Friday following the Thanksgivi­ng public holiday in the US and kicks off the Christmas shopping season.

The annual event – this year it falls on November 27 – earned its ‘black’ label back in the 1960s because shops saw it as an opportunit­y to get into the black, or into profit.

Although Black Friday incorporat­es both real and virtual shopping, Cyber Monday is a more recent phe- nomenon with retailers encouragin­g shoppers to seek online bargains.

Last year British shoppers spent £1.39billion on Black Friday alone, according to a report by discount website VoucherCod­es and the Centre for Retail Research. That is £2.9million every minute.

THE DEALS

ASDA has announced it is taking a back seat on Black Friday after unseemly scuffles at its stores last year when customers clamoured to buy 8,000 television­s in the first hour of opening.

But other retailers, such as Amazon and John Lewis, are promising attractive deals.

Others will keep their discounts up their sleeves until the very last minute but big players last year were ASOS, Very, Tesco and Currys.

MAKE A PLAN

TO avoid being led astray by the frenzy, set a budget and draw up a shopping list.

Dr Thomas Webb, of the Department of Psychology at the University of Sheffield, says the day poses a ‘classic self-control problem’ for shoppers.

He says: ‘People often think Black Friday represents a unique shopping opportunit­y and that they will regret not buying. But they need to remind themselves that there are lots of good deals around at all times of the year.’

MANAGE PAYMENTS

EVEN cash-rich shoppers should plan ahead to make their money go further. Consider using a debit or credit card that offer cashback.

Holders of Nationwide’s Select credit card get 0.5 per cent cashback on all spending. The society has just introduced a cashback scheme for all Nationwide cardholder­s signing up to its online Simply Rewards programme. Partner retailers offer discounts. The customer pays the full price and the discount is paid into their account.

If using a credit card, do not forget to pay off the bill in full as high interest charges will be applied to any outstandin­g borrowing.

If you know you will need to borrow, consider spreading the cost with a zero per cent credit card. One of the best value cards is the Halifax 24 Months All in One, which offers 24 months of interest-free spending. But borrowers need to be discipline­d and ensure any card balance is paid off by the end of two years because interest charges of 18.9 per cent will then apply.

Paying by credit card has the benefit of extra consumer protection.

Jody Baker, head of money at comparison website comparethe­market, says: ‘Shoppers making a purchase over £100 are covered by Section 75 of the Consumer Credit Act 1974. This means your credit card provider must take joint responsibi­lity with the retailer if a purchase is faulty or if it is bought online or over the phone and then fails to arrive. In these instances, you should get back your money from the card provider.’

Debit card users seeking a refund can use a scheme called ‘chargeback’ voluntaril­y offered by providers. This can reverse a transactio­n if something has gone wrong.

BUYING ABROAD

THE internet makes it easy to shop across geographic­al boundaries – and you will be able to take advantage of both Black Friday and Cyber Monday deals offered by retailers in other countries such as the US.

As many as seven million British shoppers have bought from overseas websites in the last year, according to Norwich & Peterborou­gh Building Society. But watch out for currency exchange costs and other charges.

Overseas plastic card purchases made in foreign currencies may incur charges of up to 2.99 per cent plus £1 per transactio­n – extras that cost shoppers £21million last year.

To beat hidden costs consider a credit card with low or no charges for purchases abroad. The best credit cards include Creation Everyday, Halifax Clarity, MBNA Everyday Plus and Post Office Platinum. The best debit cards for overseas transactio­ns are N&P’s Gold Classic and Metro Bank. The latter is only good value for Europe. Either way you need to open a current account to benefit. When buying goods outside Europe there may be duty to pay that will add to the purchase price. And within Europe duty must be paid on alcohol and tobacco products bought online.

MAKE IT DELIVER

WAITING in for parcel deliveries or joining the queue at a distant delivery depot is a drag. Instead, use a ‘click and collect’ option when you buy online. If your retailer does not offer this service, which lets you pick up a parcel at a local store when it suits you, try a parcel service such as Doddle. It caters for commuters, allowing them to pick up packages from its stores in handy locations such as railway stations. Even if the

retailer you are buying from is not a Doddle partner you can use one of its stores as your delivery address and pick up your parcel on the way to or from work.

EARN AS YOU SPEND

YOU can make your spending money go further by making any purchases via cashback websites such as Quidco and TopCashbac­k.

Sign up with the website first and then click on to your chosen retailer to buy your goods and they pay you a cash reward. This is eventually paid into your bank account – though it can take weeks to arrive.

Remember to delete cookies from your internet browser before going via the cashback website. This deletes your search history. If you do not do it, the cashback may not work.

SHOP SAFELY ONLINE

TO prevent Black Friday turning into a ‘fraud day’ shoppers need to take steps to protect themselves and their bank accounts.

John Cannon, fraud expert at Noddle, part of the Callcredit credit checking service, says: ‘Shoppers need to keep their wits about them and not risk becoming a victim of fraud or ID theft by being careless with their personal details in their rush to get the best deal possible.’ Simple steps include checking a retailer is reputable; avoiding making payments using an unsecured wifi connection; and checking a retailer’s website is secure.

When reaching the checkout screen, the web address should begin with ‘https’ – the ‘s’ stands for secure – and a padlock symbol should appear in the address bar. If it shows on the page instead, the website may be fraudulent.

Always double check the details of a purchase before confirming payment – including the delivery address. Get the postcode wrong and you may not see your goods for a while (if at all).

If you are redirected to a third party service to make the payment, check again for the security symbols.

If you spot a suspicious payment taken from your account contact your bank straight away. Unusual searches on your credit report or odd amounts of money leaving your account can indicate someone has stolen your identity.

You can ask for a copy of your credit report from agencies Callcredit, Equifax or Experian.

Find out more about secure online shopping at getsafeonl­ine.org.

RETURNING GOODS

LAST year as many as a third of shoppers changed their mind and returned their Black Friday items. Stores are under no obligation to accept unwanted goods, but many have a returns policy that might include a refund or a credit note.

If goods are faulty, buyers have more rigid protection. These rights have been strengthen­ed with the Consumer Rights Act 2015 and allow you 30 days to return the item for a refund. Exceptions include tailor made items, perishable items such as food and flowers and DVDs, music and software where the seals have been broken on packaging.

Shoppers buying online, by post or over the phone have extra rights because they have not seen their purchases. Under the Consumer Contracts Regulation­s they can return items quibble free within 14 days.

 ??  ?? AUTHENTIC: Milly Youngman, right, is heading to the Christmas market in Bruges to stock up on gifts
AUTHENTIC: Milly Youngman, right, is heading to the Christmas market in Bruges to stock up on gifts
 ??  ?? BOOST: Shoppers are expected to spend £1.9bn
BOOST: Shoppers are expected to spend £1.9bn
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