Based on its payments data from 2016, spending uplift in the bloc is expected to be in excess of 450% above an average Friday, nearly three times the 162% spend increase in the US, and higher than the UK’s 318%. Transaction spending values are also anticipated to be significantly greater across the EU over the November sales event.
Online shopping is expected to be a key channel for sales this year throughout the EU. In 2016, Ingenico processed 29% more online payments during the Black Friday weekend compared to the same period in 2015.
Ingenico’s findings also warn retailers about the importance of getting the right payment acceptance strategy. Retailers are typically more aggressive when it comes to accepting payments during the sales period, declining 3% fewer transactions than an average day. This can lead to a significant bump in sales – with IMRG estimating GBP 1.23 billion in UK Black Friday sales in 2016, this equates to a significant GBP 37 million extra accepted.
However, such an aggressive approach can have repercussions, as retailers have to process returns requests. According to figures from Ingenico, 54% of the total number of returns from Black Friday were made by mid-December and 70% by Christmas Eve. Handling these during the busy trading days of December can interfere with the processing of new transactions. Meanwhile, returning goods ties up stock in the mail system, resulting in unwelcome stock shortages that can lead to consumers abandoning a sale.
For more information about Ingenico, please check out a detailed profile of this company in our dedicated, industry-specific online company database.
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