HomeInsightsBlogBlack Friday 2018 what to expect this year?

Insights

Blog // 19/11/2018

Black Friday 2018 what to expect this year?

Black Friday and retailers

Santa Claus is coming and maybe just as importantly for retailers, Black Friday is even closer. Black Friday is now often seen as the day that kicks off the festive season spending sprees, but what can we expect to see from this year’s extravaganza.

Well, before looking at 2018, it’s worth considering how this phenomenon has evolved over the last few years and the lessons learnt which will influence what we’ll see this time around.

retail queues

Black Friday 2018: what have retailers learnt?

2014 was the first time we really saw an impact in the UK, and many people still equate Black Friday with the images all over the news that year of adults literally fighting each other in supermarkets to get their hands on cheap televisions. Websites crashed and retailers who weren’t prepared suffered as customers headed for bargains elsewhere.

In 2015, everyone was better organised. Consumers quickly worked out that they didn’t need to risk their lives in a supermarket aisle, when they could get the same bargain from the comfort of their armchair and much of the action moved online. Retailers knew what to expect and their servers and websites were better prepared.

website2016 and 2017 saw online rule again and the High Street stay relatively quiet. It also saw discounts extend from the traditional Black Friday products like games consoles, electronics and gadgets to flights, fashion and household goods. Retailers also tried to spread the discount period over several days to try and nab eager consumers early and take the pressure off their systems on Black Friday itself.

Consumers also knew to wait. Retail sales in October and early November were poor in places as people waited for the discounts which they knew would arrive.


So, what can we expect from 2018?

black friday Well, it has been a really difficult year for retail especially on the High Street and tough trading conditions coupled with fragile consumer confidence ahead of an uncertain Brexit mean the excitement for Black Friday seems to be lower than previous years.

Whilst Amazon have announced they will be extending Black Friday deals over a 10 day period and other retailers are promoting a Black November, many retailers are turning their back on the phenomenon.

Pressure on margins mean many are unable to offer the price cuts that they did a couple of years ago, and consumers have gotten wise to the fact that many Black Friday deals were no lower than discounts at other times of the year.

Marketing is likely to be smarter and more targeted, as retailers seek to engage with their customers and attract them by more than simply price.

It will still be a really significant shopping day and bargains will be available if you look hard enough, but it’s unlikely we will see a huge increase in sales numbers from 2017, especially in physical stores as consumers look to tighten their purse strings.

Roberto Lobue - Menzies Accountant

 

Roberto Lobue is a partner and retail specialist at Menzies LLP. For further information please contact Robert at rlobue@menzies.co.uk or call +44 (0) 1252 894915 .

Print Friendly, PDF & Email


RELATED CONTENT
  • How do you aim for success?

    Within the continuously growing digital sector, the right structure and sufficient funding to invest in new products is key to promote growth and avoid potentially problematic delays. But how do businesses achieve this? The growth statistics of digital tech companies largely exceed those of the UK economy with their turnover growing by 4.5% in 2016 […]

    Print Friendly, PDF & Email
    READ MORE >
  • Avoiding insolvency with effective credit management

    Last year’s increase in corporate insolvencies of around 10% clearly illustrates the struggle of businesses to make a profit within competitive markets – highlighting that many are still unaware of how to protect their operations in order to prevent insolvency. The profitability of any firm comes down to strong financial management, of which effective credit […]

    Print Friendly, PDF & Email
    READ MORE >
  • Financial distress? Explore your options…

    When creditors are increasing pressure and financial difficulties are threatening the survival of your business, insolvency may seem imminent. However, as this might be prevented, it is important that owner managers are aware of all available options before taking action. Act fast! The possibility of protecting the business whilst also meeting creditor’s needs might still […]

    Print Friendly, PDF & Email
    READ MORE >