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Black Friday: Gimmick, gone or more relevant than ever?
Is Black Friday relevant, needed, necessary, or even a valuable marketing opportunity, or has it become a gimmick in the retailer's quest to grab consumers' attention earlier than ever?
November 22, 2016 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
The most iconic shopping day of the year, Black Friday, is quickly approaching, but what has long been 'the' shopping day of the holiday season doesn't seem to be as exciting as it once was. In fact, 30 percent of consumers officially hate Black Friday and all the hype surrounding it.
One reason for the negativity is that nearly every big brand retailer already launched 'Black Friday' specials over a week ago, some two weeks ago. Also, Cyber Monday is still in play as is Small Business Saturday. In fact, Wal-Mart is kicking offCyber Monday on Black Friday.
Another reason is that some retailers, notably Amazon, are not only debuting Black Friday specials but giving top-tier customers (those who pay for the Prime service in this case) the opportunity to start grabbing those specials online ahead of non-Prime customers.
All the strategies beg the big question: is Black Friday relevant, needed, necessary or even a valuable marketing event, or has it become a gimmick in the quest to grab consumers’ attention earlier than ever in the holiday season and get that cash?
Well, according to Business Insider, the big day is losing its relevancy as store traffic has been consistently declining and is projected to fall about 3.5 percent this year, compared to a year ago, according to Foursquare data. The National Retail Federation is projecting 102 million consumers will hit stores over this upcoming weekend, a dip from 147 million just four years ago.
The great news for the retail industry, however, is that while store traffic may drop, spending will jump 3.6 percent compared to last year.
A BDO survey reveals more than two-thirds of retailers expected Black Friday and Cyber Monday sales to remain flat this year, noted BI.
"The question isn't whether Black Friday is dead: It's how many Black Fridays are there during the holiday season?" BDO consumer business leader Natalie Kotlyar told BI.
But if you read the Star Tribune, the Black Friday scenario is a bit different. The big question its report ponders is whether Black Friday is a consumer holiday or a retailer holiday, noting a National Retail Federation report cited 68 percent of stores still consider Black Friday as the biggest sales day of the year.
"Retailers make a minimal amount on a lot of Black Friday items but they make it up in volume," said Marshal Cohen, chief industry analyst at NPD Group, told the Tribune.
The Tribune noted there were two kinds of Black Friday shoppers — the ones who start early and the ones who amble into stores with a full belly and a much more casual approach. It's that second wave of shoppers who are the retailer's dream as they won't be picking up the big sales and may spend more.
This year's trends of starting Black Friday specials weeks in advance and the increasing online commerce activity is giving Black Friday a bit of a Black eye with shoppers, according to Dave Brennan, co-director of the University of St. Thomas Institute for Retailing Excellence.
"The advent of the internet and progressively early promotions by other retailers has diminished its importance. I think Black Friday is vaporizing," he said.
And while both viewpoints of the national shopping day are valid, there is one element all the trends and changing strategies are doing and doing well: boosting business for retailers online and off-line which makes for a happy holiday season all around. After all, big sales mean growth, labor expansion and more innovation within the retail customer experience. Not a bad thing and certainly relevant for all in the industry.
About Judy Mottl
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