Does Black Friday actually exist?

Today is Black Friday. This is something that obviously started in the United States as the sales on the day after Thanksgiving. It makes sense there as it is something that is the equivalent to the UK sales that used to start in the New Year when I was a kid and now start on Boxing Day (or earlier.)

But rather than a genuine sale where retailers get rid of stock they couldn't sell in the run up to Christmas (or Thanksgiving in the US) these are marketing gimmicks that are used to shift goods at the right time. This leads me to ask the question-

Does Black Friday actually exist?

I mean this in the sincerest of senses. Black Friday as a day of sales does not really exist in the United Kingdom. What does exists is two forces that work together to make a great day to sell products for retailers but doesn't do a great deal for customers. We will have a look at the two forces below-

People only have a limited amount of money to spend on Christmas

Now I know that the sentence above might not feel true at times when you watch people leave stores with armfuls of goods day after day from the start of the Christmas season when Halloween finishes right through until closing time on 24th December.But once all the presents are bought for all the people they have to buy for then the vast majority of people stop.

So Black Friday is a great opportunity for retailers to get in there as soon as they can. If they become the first port of call for people when they are making their Christmas gift purchases then they stand a better chance of a bigger slice of the pie. If you leave your Christmas events until the week before the big day then you will end up missing out on all the consumers that bought on Black Friday.

The earlier you get people to spend their money with you then the less chance they have of spending it anywhere else. It makes sense in this way. But when you factor in the other force at play then you can quickly realise that this doesn't necessarily lead to bargains.

What constitutes a sale item

You look at a product. the retailer tells you is used to be at a higher price and you think that you are getting a bargain. That's how it works, isn't it? But many retailers are playing games with consumer at this time of year. For an item to be described as being in a sale it has to have been sold at a higher price for a certain period of time somewhere in that company.

And that is where the games can start. If Company A lists a product for sale on their website at £50 in the summer for that qualifying period of time then they can cut the price for Black Friday and call it a sale. They may have had no intention of selling any at the higher price. The newly-quoted sale price might be exactly what they were always intended to sell it for, but because they have played the game they can call this a sale item and hook customers that might have normally walked past.

So as a consumer, check out the sale prices and see if they represent value to you. If you are a retailer then play straight with customers and stop the games.

Retailers need to be ready for the Christmas rush

This is the time of the year for retailers. I have worked in retail for a long time and Christmas saves many businesses that have struggled the rest of the year. I know of some companies, including some national U.K. retailers, that look to break even all year round and get all their annual profit in the next six weeks or so.

But it isn't about opening your doors as usual and hoping that more customers will walk through them. Retail doesn't work like that and even with plenty of empty units out there you will still face be a lot of competition. It isn't always easy to see where your competition is coming from nowadays either with the internet undercutting many traditional retailers. Here are the things you need to get right for a successful retail Christmas.

Stock

Having the right selection of products on your shelves as well as enough of them is vitally important. You need to do something to supplement what you already offer. People are looking for something completely different at this time of year so make sure that you are in a position to provide it. Look at your range and see how it can be adapted and added to for this time of year.

People shop differently at Christmas. They will be buying gifts for people and will take a guess at what they might want. The refund and exchange counters at the big stores are packed after the big event with people taking back gifts they didn't want. You need to cater to the demand of people who don't quite know what to get. Either have a gift selector on your website or make sure your team are ready to help here. This brings me on to the next part.

Your team

You may need extra bodies at this time of the year to cope with the rush and to keep up your service levels. Think about taking on Christmas temps to help you out. You can give them short term contracts to see you over the busy period. You may have extended opening hours (more on this later) so you may see your existing team spread a little thinly. Try to counter this with help.

Make sure your team are geared up for Christmas. It might seem like they will just cope with whatever you throw at them, but show that you care. It is a hectic time for most people so help them unwind and keep up the spirits. Your customers will notice.

Extra training may be needed if you are offering new products or services. Get your whole team involved in this to get the most from it. Retail is all about the experience you give your customers so make it the best possible.

Opening hours

Shops do open longer over Christmas. You may find that the rest of the retail units in your town or shopping centre open later for one or more days per week. Look at the number and type of extra customers this will bring in and make your opening decisions based on this. With out of town large shopping malls often open until 11pm or midnight and the supermarkets and online retailers open 24/7 you can't compete with everyone on this. Choose your battles wisely and extend your hours where it will help you the most.

It may be that opening earlier helps people in their way to work pick up things from you. It may be that you are more likely to attract extra trade by opening later. Work out what you need, get your team in all the right places and do what will work best for your customers. If you don't have an e-commerce website to sell all hours of the day and night then think about getting this sorted before next Christmas.

This is a hectic time of the year and it can come with a lot of stress. If you get things right before Christmas hits though you will be able to enjoy it more.

What's your favourite part about Christmas as a retailer? Let me know in the comments below, I'd love to hear from you.