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 have a duty of care for their employees. See why it's more important in results season

It's the time of the year where retailers announce their results that cover the busy Christmas period. It's good to keep abreast of these, particularly those that operate in the same sector as you. Two that have been announced today are Morrisons who reported better than expected sales and Debenhams who report their sales as "strong."

This has got me thinking about sales figures and how they affect your team. When I worked for BP it was always a horrible couple of days with customers angry at petrol prices when the company was reporting multi-billion pound profits. I suspect that Starbucks employees had similar issues when their tax affairs were made public.

My readers are generally split into two main camps - independent retailers and those who work for larger retail operations. The difference in these two is enormous and only widened by the public reporting that is required of publicly -listed companies. There are lessons to be learnt whichever camp you are in and today's blog will look at this.

Larger chain retailers
And this especially applies to those that have regular reporting of their figures, because this is where you can get examples such as the BP and Starbucks ones above. It is important for those earning massive salaries to protect their workers that are on the front line. It is difficult for customers to differentiate but the comments, ill-feeling and sometimes abuse that a BP worker gets is completely disproportionate to their role in the process.I have always spoken to those customers that voice discontent at the prices of the retailers I work with about my lack of role in the process that dictates prices. If I am working in a store, for example, then my ability to affect the price that the company sells their products at zero.

But not every employee is this insightful or confident with what they do. As a large organisation the people at the top and (more productively) the marketing, media or communications department needs to ensure that they soften the blow for the lower level employee. BP used to produce a press release for us to hand out to discuss with the customers. It explained the difference between BP Retail and BP Oil and how it isn't legal to cross-subsidise one with the other. It separated the customers who were interested in the affairs of the company from those that just wanted to have a moan. Large organisations have a moral obligation to pay their workers better, pay their way in taxes and to look after their front line workers - and this includes provisions for when publicity affects their work.

Independent retailers
I think that there is mileage here in having some sort of published results for your own independent retail business. This is an especially good idea if you can compare and contrast this with the competition from larger chains.Firstly you can share an edited version of the results with your team. Perhaps breaking it down into percentages rather than actual cash will protect your personal data. For example-

• 45% of our costs are for staffing
• We paid 25% of our income in tax, whereas our multinational rival paid only 6%
• Our profit margin after all costs and taxes have been taken out is 9%

These figures will highlight to your team what a difference a small pay rise makes or the benefit of selling one extra item per customer or whatever you want to highlight. and this is where joined up business wins out every time. If you understand your results, understand what you want to make better then you can help your team to understand what differences they can make. For example, if you want to increase the sales by 10% to give your team a 5% pay rise then use the annual figures to explain this.

The second point is for those that are a little bolder with what they do. It's best explained by way of example and I'll use a coffee shop for example. It's about comparing and contrasting your operation with a multinational rival and using this as marketing ammunition. Imagine this press release, or something similar, appearing in your local newspaper-

"Use your local coffee shop as it benefits the community

Local coffee shop Coffee For Me has just published it's annual results and it makes startling reading. In contrast to the American-owned coffee chain XYZ Seattle, who only paid tax of 4% on  their UK earnings, Coffee For Me paid 20% of their earning sin tax. They also employ 5 people from out town, all of whom then spend their ages in our town. The owners, Mr and Mrs Jones, have lived here for over 20 years and they shop locally with other locally-owned businesses.

If you want to ensure that you support local people and people who pay their fair share of UK taxes, make sure that the next time you go out for  coffee it's at Coffee For Me, and nor one of these chains that are taking money away fro the town, the region and the UK."

It is for those with a little more aggressive marketing approach but the impact for me would be a huge one. It's all about making your customers think about their purchases and to make a decision on the greater good.

All in all, retailers have a duty of care over their colleagues. Whether it's to protect them from negative media coverage, to help them understand the business or to prompt their customers to shop locally.