Consumers in Europe have gone about staying more cautious about their spending during 2022, in front of attractive purchase offers on “Black Friday”, which is the annual celebration that takes place in November of each year, and includes unprecedented discounts.
Where the demand for “Black Friday” offers decreased throughout Europe, given that the rise in prices in the current year led to the erosion of real wages and lower living standards,
As of Friday afternoon, shoppers at UK retailers were 22 percent below COVID-19 levels in 2019, according to data provider Springboard.
I and throughout Europe, the outlook is not rosy either, as inflation is still rising, and the energy crisis may continue beyond winter, in addition to the fact that recession is looming on the horizon, and all of these factors weigh on consumers, and deal a big blow to family budgets, And overshadow the shopping events.
Thomas Dvorak, chief economist at the Oxford Economics consulting firm, expects darkness to descend on Europe during Christmas, noting that “consumers are unlikely to accept Christmas cuts and are likely to become more frugal in their expenditures.”
Lily, a customer from the United Kingdom, told Xinhua that she had to cut back on her shopping plan in light of the high inflation rate.
She also noted that people “keep their money a little more, and are a little more careful about what they buy at the present time, especially since Christmas is around the corner.”
Inflation in Britain rose by 11.1 percent in October, its highest level in 41 years, which contributed to reducing average ordinary wages by 2.7 percent between July and September, the sharpest drop in growth since it began. Similar records in 2001.
Amid the worsening cost of living crisis, consumer confidence in Britain during the month of November is still close to its lowest historical levels, after touching a bottom in September, according to surveys conducted by the market research company “GfK”.
There is no rapid improvement on the horizon, as statistics show that inflation is expected to decline in the next year 2023, but it is likely to remain high at 7 percent in the European Union and 6.1 percent in the “euro” area.