“Black Friday, the day after Thanksgiving, is to Americans what Boxing Day is to the UK – a retail-led frenzy both on the internet and on the high street,” comments Jonathan De Mello, Head of Retail Consultancy, at CBRE.
“Retailers in the US over the last few months have been preparing for Black Friday in earnest, as it has become their biggest shopping day of the year. Discounts are deep but over time retailers in the US, certainly since 2008, have learnt not to prolong this for too long given margin impact. Discounts are short but sharp as they will hopefully be in the UK come Boxing Day and provide a valuable means for retailers to clear stock prior to introducing their spring collections.
“All too often, however, UK retailers engage in panic discounting; easy to do given the fragile state of the economy, and the margin impact this may bring can make or break a retailer come the new year. 2012 has been the worst year for retail since 2008 in terms of insolvencies and job losses in the sector. Let’s hope that retailers in the UK therefore follow the example of their US counterparts on Black Friday and ensure Boxing Day provides a similar one day – rather than two week – retail extravaganza.”