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
- 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
- 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