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As Black Friday 2020 fast approaches, companies far and wide have started advertising mega sales in their droves. With slashed prices as high as 75% off, Black Friday has become one of the highest revenue days of the year for the retail industry.
This year, however, is different. Not only will the high street stores be closed due to lockdown regulations but retailers are still feeling the fallout from the first lockdown, mainly from having shops closed for over 4 months with little or no way to gain their lost revenue back. Enter Black Friday.
Black Friday 2020 could be the lifesaver that retailers are looking for. With consumers unable to head out to the shops to buy Christmas presents during the festive season, buying online is now the only option. Pair that with the vast majority of the UK struggling with their own personal funds due to the pandemic, more people than ever will be looking for cut price products that won’t break the bank.
What is Black Friday?
Black Friday originated in the US, and is known as a day of mega discounts. It gained popularity across the Atlantic here in the UK in 2011 and was officially launched by online giant Amazon. It’s safe to say Black Friday is now a much anticipated date in every consumer’s diary.
When is Black Friday?
On 27th November, Black Friday deals will launch, offering discounts on technology products, health and beauty appliances and the most sought after Christmas toys of the year. Notably missing this Black Friday will be the big drive for travel discounts due to the Covid-19 pandemic and restrictions on travelling abroad.
Effect of lockdown on retailers
The retail industry has been hit hard by the Coronavirus pandemic with Argos, Debenhams, Monsoon and Victoria’s Secret just some of the many household names that have or plan to cut hundreds of stores and jobs across the country.
One of the biggest brands affected by the pandemic has been fashion retailer Primark with a 24% drop in revenue compared to 2019. This is mainly due to Primark not having an ecommerce store and using their high street-only presence as their main unique selling point. The pandemic has proven more than ever that having an online presence is imperative for driving revenue.
Compare this to Amazon’s figures that show net sales of $96 bn, an increase of 37% in the three months before 30th September and a net profit of $6.3 bn for the year. This shows that buying online has seen a huge increase in popularity and that’s why Black Friday 2020 is set to be the biggest one yet.
Usual figures of Black Friday sales
According to Spendmenot.com, 93.2 million buyers made an online purchase on Black Friday 2019 and Barclaycard reported transaction value was up 16.5% compared to 2018. These figures from last year were reported when high street stores were open so what should we expect now buying online is the only option?
It seems there will be even bigger discounts, even wider product ranges on sale and even longer sales with many companies dubbing the whole of the month “Black November”. Amazon has teased their customers with a sneak peak into upcoming Black Friday deals and many other brands have revealed Black Friday discounts in exclusive emails to their members with some reporting 80%+ off original prices.
Black Friday deals for businesses and consumers
Black Friday 2020 is an event that needs to be successful for both retailers and for consumers this year. Retailers need to make big profits after a poor performing year and consumers need to find mega deals in order to celebrate as close to a “normal” Christmas as possible, so this 27th November couldn’t come quick enough.
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Kat Holmes
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