The Double Edged Sword of Black Friday discounting
Four days shy of Cyber Monday and the discounts are already mounting. "We just couldn't wait," Barneys New York said in an ad promoting its up to 40% off sale. Moda Operandi, too, is offering a up to 50% discount on its Autumn Winter 2018 collections, while other online luxury retailers Farfetch and the Dreslyn are touting early access sales.
Black Friday weekend is the year’s biggest promotional event for most major U.S. retailers and increasingly retailers around the world. November sales growth has now overtaken Decembers for the first time, as shoppers look to snap a bargain earlier in the build up to Christmas.
Retail analysts have said the increasing levels of discounting have hit companies profitability hard with retailers such as UK's Debenhams issuing profit warnings in 2018. Some retailers are opting not to participate in the flash sales event however not participating may be a double edged sword.
Profit margins may be protected however it may just mean that competitors pick up the sales and in the current climate, every dollar counts.
We've been tracking the daily discounts over this period and comparing them to our last years data and the levels of discounting are becoming more aggressive and scheduled earlier than before.
We are now producing weekly market summary reports for non-subscribers over the coming Christmas trading period to give critical insights into our competitors activities.
Contact us and we can get you set up to start monitoring your market.