Should Independent Retailers Take Part in Black Friday?

By SME Insurance

Posted 20/11/17

Black Friday sale

Black Friday is a flash sale which happens once a year on the third Friday of November – the day after Thanksgiving. Initially an American tradition, the concept has travelled over to the UK in recent years after being launched by US giants Amazon and Walmart. It’s worth bearing in mind that some larger chains will run sales over the full week or weekend, but the main event is the Friday.

In the USA consumers flock to shops and websites running the sales, funnelling profit into the retail industry, and with Brits projected to spend £7.4bn during the sale this year, things are looking to be the same the UK[1]. But it can be dangerous with people fighting over deals (in the USA it’s statistically more likely that you’ll be injured during Black Friday than in a shark attack [2]) and you’ve got to be sure you can afford the deals you’re offering. So, as an independent retailer, should you take part? This guide will help you decide whether it’s for you and how best to grab your own slice of the Black Friday pie.

  1. Set Realistic Goals Before Deciding to Take Part

Determine the return on investment (ROI) you want to see and work out how much extra you can afford to spend on stock, staffing and advertising. Will your projected revenue cover your costs and see the return on investment that you want? [3]

  1. Build Your Brand

Rather than focussing on sales, why not create a fun event for customers who visit the store on Black Friday. This is a great way to build some brand loyalty and promote your products. If you’re digitally savvy, why not see if there are some local culture bloggers you can invite along to create a greater buzz about your business? [4]

  1. Discount Selectively

Black Friday isn’t about dropping the price of everything in store; it’s about giving a few exciting discounts to get people into your shop and talking about it. You want to remind them to come back next month to pick up their Christmas presents, not buy them all at rock-bottom prices! [5]

  1. Create a Buzz Over Your Christmas Stock

As mentioned, you really want people coming back and paying full price for their Christmas presents next month. Make sure they’re getting a sneak peak of what’s available and are encouraged to come back and have a better look. Why not have a follow up event in a couple of weeks with mince pies and bucks fizz to get them back in store and spending more money? [6]

  1. Promote Online

Be sure to promote your event online, letting your customers know what will be happening in store and why they should come. With some smart work on your social channels you can create a buzz around your store much greater than anything you could create with paid advertising. [7]

Are you a retailer and needing insurance? Get a retail insurance quote from SMEI online today.

 [1] http://www.netimperative.com/2017/11/black-friday-psychological-retail-phenomenon/

[2] https://www.usnews.com/news/slideshows/10-black-friday-facts?slide=3

[3]  https://www.izettle.com/gb/blogs/retail/boost-sales-black-friday-7-resolute-tips-small-retailers-5376

[4] https://www.izettle.com/gb/blogs/retail/boost-sales-black-friday-7-resolute-tips-small-retailers-5376

[5] https://www.izettle.com/gb/blogs/retail/boost-sales-black-friday-7-resolute-tips-small-retailers-5376

[6] https://www.izettle.com/gb/blogs/retail/boost-sales-black-friday-7-resolute-tips-small-retailers-5376

[7] https://www.izettle.com/gb/blogs/retail/boost-sales-black-friday-7-resolute-tips-small-retailers-5376

Posted 20/11/17

Author: SME Insurance

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