In this Retail Roundup, MD Rob Smith asks retailers to consider the real cost of Black Friday and why they might be better off side-stepping the biggest shopping day of the year altogether.
If you'd rather read about Black Friday than listen to Rob's video, then we've transcribed it for you below, enjoy:
Hello, this is Rob Smith, MD of Blueleaf and in today's Retail Roundup I'm going to talk about Black Friday.
Are you going to do it, are you not? The question on everyone's lips. ASDA recently announced that they're not going to to be participating. After the photos of the crowds that I saw from last year, I have to say I'm not surprised, for security reasons alone!
One of our clients, Fat Face, didn't really participate last year and they really won from not doing so. They've got a really strong brand, so when shoppers realised that they weren't going hold a big pre-Christmas sale, everyone bought full price items, winning them a lot of margin.
So what are you going to do about Black Friday? My advice is, if you've got a strong brand I just wouldn't participate at all. If you're easily replaceable, in terms of the products you sell, perhaps you sell branded goods, then you might have a bit more of an issue.
On the whole, I think there's going to be more and more bravery around ducking out of Black Friday. Some retailers I speak to think it might disappear as a phenomenon altogether over the next two or three years.
As retailers, let's ask ourselves why we want to concentrate all our sales to one time, causing logistical issues and potential customer delays. We also have to get more resource for just one day and we destroy our margins. It doesn't sound like a good deal to me! So if you can be brave and avoid it, I would.
I hope this has helped, thanks for listening.