Retailers are killing themselves and each other in their attempts to attract early Christmas shoppers on Black Friday.
Elizabetta Camilleri founder of SalesGossip explains: “Last year Black Friday hit UK stores for the first time. 142 retailers on SalesGossip, mainly national chains, had Black Friday or Cyber Monday deals in 2013. But the transatlantic migration of this shopping phenomenon is killing retailers.”
“The retailers are telling analysts that they will sell more stock full price. But in practice this isn’t the way they are incentivising customers. Black Friday is yet another bargain buster in the sales war that is forcing retailers to slash prices. On 28 November 2014, a 50% increase in the number of retailers offering Black Friday promotions is expected. The margins of smaller retailers and independent stores stocking limited pieces from a number of brands are at greatest risk.”
Even luxury brands which have previously steered clear of discounts for fear of devaluing their brands look set to follow suit.
SalesGossip predicts a Black Friday backlash and is advising retailers to get ahead of the curve, calling time on the transatlantic tide that has quickly become an anchor for early Christmas shoppers.
For most of us shopping is at heart still a hobby and women are more drawn to sales than men. While men tend to shop for specific items, women spot the sales first and browse for the best bargains second.
And, while research shows that 60% of us browse bargains by mobile phone and tablet, between 80 and 95% of us actually still purchase items in-store. It’s a statistic that shows we are on the cusp of seeing a return to the shopping experience of 20 years ago.
One thing is for certain, with 60% of high street leases expiring over the next four years, retail is facing a revolution.
SalesGossip was founded in London Business School’s Incubator