04 August 2016
In the past three years Black Friday in the UK has moved from being an American novelty to a “must-do” promotion. Penelope Ody examines whether it really brings extra revenue or simply spreads sales and reduces profits.
Ask many retailers about their views of Black Friday and, as Dan Murphy, Partner with consultants Kurt Salmon, puts it: “They would love it if it went away. It causes a huge peak in logistics demand and leads to website meltdown”. A few – notably Dixons and John Lewis – have eulogised over the resulting boost to sales, but for many others it has simply moved the December pre-Christmas shopping peak into November and reduced sales in the following weeks – a trend that is even visible in Dixons’ Q3 weekly sales graph.