- 7 Dec
A discounted December?
The verdict’s out on Black Friday, as this year’s sales figures are in. But did the event meet our predictions and expectations?
Online vs High St
Online spend was up 36% year on year, smashing previous records by topping £1.1 billion sales on Black Friday. Online sales across the four day weekend, including Cyber Monday, amounted to a whopping £3.3 billion.
It was a different story on the high street, however, as footfall fell 4.5%, a slump blamed not only on the “damp squib” that was Black Friday, but also due to the strong online offer provided by many retailers. In this sense, Black Friday definitely failed to provide high street fashion stores with the required boost in November, with sales down 4.9% year on year, following on from a similar October slump.
So, why did consumers choose to purchase online, opting for shopping via ecommerce rather than bricks and mortar? Perhaps the mayhem that gripped the nation’s headlines last year acted as a deterrent to those hoping to shop in-store.
Something that definitely stood out from last year is the drawn out nature of the discount period. It was a well organised, pre-Christmas shopping event rather than one manic day of unprecedented demand and unfulfilled expectations.
Is there much that retailers can do in the battle to protect margins, in the face of the current consumer demand for discounting? 60% of shoppers time their purchases around sales (Conlumino 2014), a mentality that is harming retailers’ sell through of full price stock. If December is anything to go by so far, we’re still seeing extended discounts under different names: Cyber Monday Hangover, Manic Monday, Festive Frenzy… It’s interesting that the connotations of discounting still concentrate on the “flash” sale, despite deals being stretched out to prevent demand concentrating on days like Black Friday.
Something retailers need to consider is the amount of returns they’re getting, and the need to process these with great efficiency. What’s the use of having an item “out of stock” on your website, or in-store for that matter, when said item is being returned, and could be being sold at full price? This is a cyclical process that needs to tighten up.
Now more than ever, it’s critical for retailers to have 100% visibility of all stock, across all channels. We can help – just visit our dedicated Merret page to learn more about omnichannel supply chain efficiency, or get in touch with us here.