Black Friday 2022 Review – Retail sales($) increasing despite declines in traffic

Kepler delivers a 3 part review of Black Friday week for 2022 using the Kepler Retail Index (KRI) – A like-for-like comparison of 1600+ stores across Australia.

Traffic & Sales

Passerby Traffic

-25% vs 2019​

-7% vs 2021

Inside
Traffic

-37% vs 2019​

-2% vs 2021

Sales
Targets

+44% vs 2019​

+11% vs 2021

Sales ($)

+11% vs 2019​

+2% vs 2021

• Traffic remains stubbornly low
• Inside Traffic is extremely low, and declining vs 2021
• Whilst sales ($) grew, they did not meet retailer expectations

Two positives but also something to keep an eye on

Sales
Conversion

+49% vs 2019

-8% vs 2021

Average Transaction
Value

+19% vs 2019​

-3% vs 2021

Transactions

-7% vs 2019​

+5% vs 2021

• Sales Conversion Rate (SCR) and Average Transaction Values (ATV) performing extremely well vs 2019 but now dropping vs 2021
• Transaction volumes are declining vs 2021, traffic impacts now showing through

Key takeaways

1. Shopfront Conversion (SFC) is falling vs prior years, this is a key metric for retail survival. Tactics to build SFC need to be put in place:
   • Shopfront engagements relevant to customers
   • Inviting store navigation and line of sight through stores
   • Give passerby traffic a compelling reason to enter
2. Passerby traffic remains stubbornly low, this is what a retailer pays rent for. Understanding the movement of traffic in the centre and past your doors is vital:
   • Create valuations of stores based on passing traffic
   • Understand which stores are able to generate more SFC by their structure and position as well as your store execution
   • Enter negotiations with landlords knowing your true cost of traffic and long term trends past your doors, and for centres as a whole

Related Links

• During the videos above, the Kepler Retail Index (KRI) was used to present wider trends. To see more examples of how KRI can benefit your business, watch this video
• Learn more about the Store Network Toolkit

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