Black Friday is fast approaching and retailers and businesses are preparing for the American phenomenon to impact the UK in a whirlwind of sales and promotions.
But, how did Black Friday become such a huge event within the UK?
Black Friday occurs on the last Friday of November, before the Christmas rush hits consumers. As it is the last promotional event before the festive season it gives consumers urgency to buy products immediately.
The American sale began in the 1940s. The day after Thanksgiving, retailers would offer discounts to consumers who would rush out to stores to grab a bargain.
A recent article published within City A.M. states that another explanation for Black Friday was that it was the day retailers began to make profits, changing balance sheets from red to black.
THE AMAZON EFFECT
The trend began in the UK in 2010 when Amazon began offering Black Friday discounts online, but it gained momentum last year when other UK retailers began offering sales to stay price competitive.
As Amazon was influential to this sale hitting the UK market, it is no surprise that the impact it is having on the business is huge. It was reported that last year Amazon sold more than 7.4 million items on Black Friday, with 86 items selling every second!
THE BIGGEST BLACK FRIDAY YET?
RetailWeek have reported that millions of shoppers will ‘jump online’ to grab their bargains and that 2016 is set to be the biggest Black Friday yet. Consultancy firm Salmon predicts that £5 billion will be spent online from Thursday 24 November to Monday 28 November.
But, will consumers crowd stores during this period, or will online activity soar?
A survey from The Market Creative shows 69% of consumers plan to take advantage of Black Friday deals, with 29% planning on doing their shopping online to avoided crowded stores.
BLACK FRIDAY IMPACTS THE SUPPLY CHAIN…
The increase in sales and consumer activity across Black Friday weekend is great for retailers, however, the promotion does place pressure on the supply chain and the logistics of carrying out the sale can hold complications.
Increased demand on inventory and stock held within a warehouse and more packages being dispatched across that weekend can place strain upon many retailers and their supply chains.
Amazon is said to have eased demand by employing more staff to ease the pressure of the Black Friday sale.
It is clear that the supply chain must be planned and well-executed for Black Friday. To run efficiently, departments must work together to eliminate pressures and goods should remain high quality, with delivery times being adhered to.
A recent RetailWeek article based on a Hermes breakfast seminar, which was hosted with various retailers, documents discussions around the pressures placed upon businesses during the sale period.
It was mentioned that this could be relieved from warehouses by offering longer lead times on products, as consumers are incentivised by discount offered and not delivery times.
However, a number of retailers participating in the seminar mentioned they saw an increase in customer queries when offering longer lead times, with many customers contacting stores to confirm they secured the discount.
IS BLACK FRIDAY HERE TO STAY?
It is unclear whether Black Friday is set to become an annual tradition held on the last Friday in November within the UK. Or, whether this sale is a trend best suited to the American market that will wither out as the years go by.
But, it is clear that for now, the Black Friday event is bigger than ever and set to have a huge impact on retailers across the country.