The emergence of Black Friday and then Cyber Monday (falling 3 days after) in the UK have massively impacted on the dynamics of consumer shopping trends around the Christmas season.
Retail Week’s 2016 Trading Report has identified two schools of thought on Black Friday; firstly, that Black Friday doesn’t affect Christmas trade as consumers largely shop for themselves during this event and secondly, that Black Friday pulls Christmas trade forward into a period when stock is being heavily discounted. Last year UK retail sales hit a record breaking £1 billion on Black Friday. The figures show that Black Friday can be highly rewarding for retailers and Retail Week’s recent report on Christmas Trading 2016 found that 47% of consumers say they hope to find a deal on Black Friday and Cyber Monday.
So, what should retailers take into consideration for this year’s Black Friday?
- Retailers must find a balance between offering a discount that consumers can’t resist and not completely slashing prices on product lines that will make a loss.
- Retail businesses should plan their resources well in advance to ensure that the appropriate number of employees are in place to handle the increase in demand.
- All systems, stock and infrastructure must be functioning effectively with contingency arrangements in place should demand exceed that predicted or any unexpected issues arise.
- According to Criteo’s latest Mobile Commerce Report, half of all UK ecommerce transactions now take place on mobile, as more consumers than ever use their smartphones to shop for products on the go. Retailers must have a robust mobile and ecommerce strategy in place ahead of Black Friday.
- Consumers have high expectations when it comes to the multi-channel offering of retailers, so for businesses to compete, they must be able to deliver streamlined and outstanding customer shopping experience through all channels.
- In the wake of this year’s Brexit vote, the falling value of the pound means that imports are more expensive. Is the retail sector resilient and innovative enough to withstand the decrease in consumer spending confidence?
- Retailers should consider extending the Black Friday sale to a longer period of discounts, maybe up to 5 days, to reduce the overall strain on fulfilment and margins.
Although there is uncertainty over whether retailers will benefit from phenomenons such as Black Friday and Cyber Monday, the reality of it is that retailers fear missing out on the potential benefits and can’t risk not taking part.
