CityAM Debate: Should Retailers Ignore Black Friday?
November 20, 2018
We were invited by leading London business paper CityAM to contribute to a debate about out-of-control discounts over the Black Friday and Cyber Monday weekend. Retail Partner Duncan Brewer shared his perspective:
"Since the first big UK retailer started running Black Friday promotions, there has been no way back for the whole sector. Collectively, they are all losing money now: our research shows that 75 per cent of Black Friday purchases are cannibalising full-price sales. But if an individual retailer chooses to ignore Black Friday, its business may lose a huge volume of sales to competitors.
"That’s why they all have to stick with it. It’s better to keep sales volumes up (even at minimal profits) and try to win new customers on Black Friday than it is to lose sales to the competition.
"Given this dilemma, individual retailers must figure out ways to deliver Black Friday better than their rivals – for example, with leaner operating costs, smarter purchasing decisions, attracting customers with products and shopping experiences they can’t get elsewhere, and high-margin add-on sales.
"Black Friday cannot be ignored, so it must be used to create a competitive advantage."
To read both sides of the debate, click here >>