- ‘Buy Now Pay Later’ proves a popular way to spread the cost with Gen Z and millennials
- Cash payments not yet a thing of the past
UK shoppers are planning to hunt for energy-saving bargains, including blankets and small space heaters, on Black Friday this year. According to new research announced today by quantilope, the research platform that automates advanced research methodologies, more than a quarter (28%) of shoppers plan to buy products to help save on their energy bills this winter, while a third (34%) will look for basic essentials for themselves or their family.
quantilope surveyed 400 consumers in the UK (and 400 in the US) to understand more about their Black Friday shopping habits and how they plan to pay for their purchases. A quarter of consumers will avoid Black Friday this year, with the majority of these avoiders saying there is nothing they need to buy on a Black Friday deal (64%). Nearly half (46%) think Black Friday is over-hyped and one in ten say it stresses them out. The rising cost of living is clearly having a big impact, with a quarter of those abstaining from Black Friday shopping saying that inflation has affected their discretionary spending.
Alex Hall, Associate Director at quantilope, believes that shoppers are looking to Black Friday as a way of saving money in more ways than one. “It’s a time when people usually look for deals on gifts for themselves and their families ahead of Christmas. While this still holds true this year, we’re also seeing substantial metrics for those stocking up on basic essentials, items for the household, and even energy-reducing items. This might signal the start of a changed perception about Black Friday.”
The ‘Buy Now, Pay Later’ generations
According to quantilope’s research, younger shoppers are planning to use ‘Buy Now, Pay Later’ (BNPL) services – perhaps so that they don’t miss out on any Black Friday bargains that could save them money in the longer term. While around a quarter of all consumers (26%) plan to use BNPL in the UK, this rises significantly among younger generations, with 40% of Gen Z and 36% of millennials planning to do so.
This is backed up by new research from McKinsey & Company, which indicates that BNPL services are becoming increasingly popular as the cost of living crisis worsens and people turn to shopping on credit. It also states that millennials and Gen Z are more likely to use BNPL in the coming months.
“This is further evidence that the current economic climate impacts what shoppers buy and how they plan to pay for it. But what’s really interesting is that as well as people planning to buy on no interest credit services like BNPL as well as credit cards, cash is also still a common form of payment. Despite the rise in contactless payments, one-in-four shoppers in the UK are planning to pay for their Black Friday purchases in cash”, adds quantilope’s Alex Hall.