Posted on: 16 October 2019
Another year has flown by, and the build-up for Christmas has officially started. Just before Christmas, we have one of the biggest days in the retail calendar, Black Friday.
Whilst Black Friday has been a holiday tradition in the US since the 1980s, Black Friday was adopted in the UK in 2010, after being introduced by Amazon.
Why do you need to prepare?
Last year, Black Friday sales in the UK were labelled as "extremely poor" by Bonmarche, reflecting the sales growth, which was predicted to be 13% but was instead only 7.3%. Market researchers, GfK, found that the biggest concern for people in the UK at the moment was having enough money to pay bills, likely due to increased inflation and a fall in the pound’s worth. It was also predicted that because Black Friday fell on the 23rd November, many consumers hadn’t received their wage for the month, so weren’t spending until they had become more financially stable following payday.
With these concerns, it is important to make sure your sales are right for your target customers, so that they’re happy to spend money during your Black Friday sales.
What to consider for your sales
Take a look at some of these things that you can do to help your customers during the run up to Christmas, whilst still reaping the benefits of the Black Friday sales.
Timing of your sales
As we previously mentioned, because Black Friday fell too early last year, consumers weren’t spending because they didn’t have the financial stability to back up their spending. This year, however, Black Friday falls on 29th November 2019 which is likely to mean that your customers will have been paid for the month.
Advertise your sales early to let your customers know that you will be offering discounts on your products for Black Friday.
Last year saw some huge discounts from some of the biggest retailers in the market, such as Argos, Curry’s and Amazon, who were offering discounts of up to 60% on selected products.
The discounts that you offer to your customers will vary on how much you can afford to discount your products, but at least offering something will encourage your customers to come and spend at your shop rather than a competitor. Use the upcoming months to work out the kind of offers that you want to promote and how much you can afford to reduce off your items.
Which products you will discount
On top of knowing how much your discount needs to be, you should also try to work out which products your customers may want to buy in your sales.
There are a variety of different ways in which you could decide which items you want to discount. You could choose your top sellers so that you know that your items will sell if they are discounted, and hopefully sell even more of them, or alternatively, see about discounting some of your items that don’t tend to sell as well. This will help you clear out some stock or encourage your customers to try new products that they might not have considered before.
Use sales records to find out which products you may want to discount for your customers, again, in advance of the event so that you have time to prepare.
If you have an e-commerce business or sell items online as well as in your shop, be sure to take a look at the kind of offers that you can promote for Cyber Monday, or take a look at how you can use Cyber Monday to grow your own business.
Retail insurance with Premierline
Because of the huge amount of diversity in the retail industry, getting your retail insurance right can be a challenge. You will face a number of unique risks depending on the kind of products that you sell and whether or not you sell your products online.
At Premierline, we understand these risks that retailers face, which is why our business insurance experts will assess your business’ needs and will help find insurance quotes that are right for your business. Get in touch to speak to a business insurance professional today.
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