Black Friday is an American import that has become an important retail event in the UK. In the US, Black Friday is the day after Thanksgiving, which is a public holiday. Traditionally, retailers would discount heavily on that day to entice shopper into their stores while they were not at work. It is seen as the beginning of the Christmas shopping season the US.
While the UK has taken on the tradition since 2010, there are many differences. For one, the fourth Friday in November is not a public holiday, and this may explain why most sales are online. According to a survey by PWC 72% of Black Friday spending is through either a desktop or via mobile with only 21% of shopping done instore.
However, the shopping event, while popular with consumers, is not always universally loved by retailers. Many worry about early promotions cannibalising their Christmas sales; but, it does not have to be this way. Here are three things you can do to ensure that your Black Friday Promotion doesn't detract from your Christmas revenue.
1) Targeted discounting
According to a survey by PWC, shoppers are only doing 20% of their Christmas shopping during Black Friday. They mostly intend to buy for themselves and big-ticket items such as TVs and electronics are some of the most popular items bought during Black Friday. To help prevent this retail event from hijacking your Christmas revenue, targeted discounting is the way forward, rather than having a blanket discount across your full range. Pick items that shoppers are most likely to buy for themselves and not as gifts.
2) Get in early
The evolution of Black Friday has been swift in the UK. It started as a one-day discount extravaganza but now Black Friday promotions can last more than a week, or even two. By getting in early you can often beat the competition. Also, with many Brits being paid their salary towards the end of every month, and usually after Black Friday, early bargains may entice some shoppers to spend before they start to feel the pinch more. Not only does having a longer or earlier Black Friday promotion encourage shoppers to spend, but it can also relieve the pressure on your warehouse and distribution facilities.
3) Choose products that hold margin
When defining your targeted discount strategy, aim to reduce products that hold their margin well. This tends to work well for big-ticket items more than smaller goods. According to PWC, 50% of Black Friday revenue is spent on electricals and technology, while 16% is spent on homewares.
Whether or not you decided to take part in Black Friday, our top tips can help you have a more profitable promotion, without having a negative impact on your festive revenue.
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