BLACK FRIDAY IS BAD FOR BUSINESS SAY UK SMALL RETAILERS

Shopappy founder and expert on the Government’s High Streets Task Force, Dr Jackie Mulligan, calls on employers to give staff an extra hour off to explore and enjoy their local high streets on Black Friday, which is better for their communities and the planet #GreenFriday?

Three quarters (73%) of small independent retailers say Black Friday is bad for business and loses them sales, as people are drawn to global or UK retail giants promising significant discounts, according to a joint survey by shop local platform, Shopappy, and small business free publicity platform, Newspage.

The survey, of 1000 small retailers based around the UK, also revealed that eight in 10 (81%) respondents say Black Friday is putting pressure on them to lower their prices to remain competitive, at a time when margins and profits are already down due to the cost of living crisis and soaring inflation and energy bills.

Unsurprisingly, nine in 10 (89%) survey respondents said they would like to see the annual shopping event removed from the UK calendar altogether, with one describing it as an ‘annual kick in the teeth for small independent retail businesses”.

However, some retailers see Black Friday as a “necessary evil” and something they “begrudgingly” embrace in an effort to drive some quick sales (comments from 9 retailers and survey respondents below).

Dr Jackie Mulligan , expert on the Government’s High Streets Task Force and founder of local shopping platform, ShopLocalOnline.org and Shopappy, commented:

“Having weathered the pandemic and now facing an unprecedented economic and cost of living crisis, the small independent shops that line our high streets need our support more than ever. Many are saying this Christmas could be their last if sales aren’t strong and Black Friday could be the final nail in the coffin as it bedazzles consumers and encourages them to spend with big business. This year, like last, we’re encouraging people to spend what money they do have with the businesses in their local communities rather than line the pockets of billionaires. To this end, we’re giving all our staff the afternoon off on Black Friday to go into their town centres and support small local shops, and we encourage other businesses to do the same, even just for an extra hour. It’s a good way to boost staff wellbeing, local communities and help the planet, and takes people away from the fakery and nonsense of Black Friday.”

Jukka V??n?nen , CEO, Newspage, added: “Black Friday, in the eyes of the vast majority of small retailers, is a trashy American import that should be binned once and for all. In the current economic climate, independent retailers are already under the cosh and then along comes an event that costs them sales and puts pressure on them to cut their prices. While the vast majority of survey respondents were against Black Friday, some were ambivalent and feel they have no choice but to roll with it. They see it as “a necessary evil” and one that it would be unwise, commercially, to ignore.”

Here are the views from nine small retailers:

Maryann Penfold , owner of Worthing-based artisan hot chilli sauce maker, Boom Sauce: “Black Friday is a kick in the teeth for small independent retail businesses. Huge tax-avoiding companies promote “heavily discounted” stock, leading you to believe you are getting a deal. This undercuts small businesses and takes away sales that could have been made with small independents. Small businesses advertising Black Friday deals are falling into the trap, so please don’t compete with big institutions. Independents simply cannot compete with such low prices. I believe in my product and have worked hard to build the brand. I refuse to conform and reduce my prices to compete.”

Rachel Harvey of pottery shop and studio, The Paint Box in Cleethorpes: “You get the feeling that a Black Friday backlash may be underway. The public are becoming increasingly sceptical of an annual event that is as sterile as it is soulless. Also, if a business is offering huge discounts and still making a profit, are you really getting a bargain? Small independent businesses offer value and outstanding customer service all year round. They pay fair taxes, employ local people and pay directly back into the local economy. So I urge customers to bear all this in mind this Black Friday. Where you spend your money matters more than ever in the current economic climate.”

Stephanie Briggs MCIM , owner of Girvan-based La Di Da Interiors: “Black Friday is a necessary evil as a small retail business. I begrudgingly embraced it for the first time last year and decided to overlook the margin hit for the quick cash injection. Given the snail's pace of business this year I have no choice but to do it again. It’s a delicate balance between not alienating your existing customers and offering bargains for mass appeal. It’s tough.”

Barry Whitehouse , owner at Banbury-based art shop, The Artery: “Black Friday can be a dark day indeed for small independent retailers, as all the razzmatazz and hysteria that surrounds it can encourage even the most loyal local shoppers to go online and buy through a retail giant. It can also put real pressure on small businesses to reduce their own prices at a time when many are already on the brink. Luckily, we have a loyal customer base who understand that an independent shop is more than just a place to transact but a place to chat and meet others in the local community, who often share similar interests. That experience more than makes up for a quick one-off saving due to a Black Friday discount. It’s predicted that 46% of people in the UK will shop solely online for Black Friday, which means the majority want to shop in bricks and mortar. How great it would be if that 54% chose to support the local small shops in their town centres. Also, those who work in retail themselves often find it hard to support their own town centres as they work the same hours as other businesses and find they are closed when they leave work and are therefore forced to buy online from the big online giants. It would be wonderful if all businesses could give their staff a shop local hour off over Black Friday to allow them to support their own local economy, and help keep their town thriving.”

Michaela Bere , owner of handmade and eco-conscious notebook and stationery retailer, Blue Stiggy: “Instead of following along with the mass consumerism encouraged by Black Friday, we should all support small independent businesses through initiatives like #ColourFriday and pledge to spend more mindfully this Christmas. Buying a thoughtful gift from a small indie brand that has been made with love and care will be way more meaningful to the lucky recipient than something bought in the haste of Black Friday Fever. It comes with the added bonus of helping that small brand to navigate these very stormy economic seas.”

Bryony Lewis , founder of the Wareham-based online gift website, T & Belle: “I want to hate Black Friday, and in many respects I do. I hate the version of it that involves stampedes of people flocking to huge retail giants who are flogging substandard electronics at slightly less inflated prices than usual. But I cannot argue with the fact that for several years running it has been the strongest sales weekend of the year for my small business. Last year, I made more during that weekend than the entire previous month. So instead of shunning it, I try to embrace it and shout about shopping small rather than lining the pockets of the big stores. I feel that ignoring Black Friday weekend when the future of my business depends on a good last quarter would quite frankly be foolish.”

Natalie Ormond , founder of Leeds-based sustainable lifestyle store, Smallkind: “As a business and a consumer I don't do Black Friday. It goes against all my values. Money is tight for all of us this year. We really need a good Christmas season saleswise but I still won't get involved in Black Friday. Price slashing and over-consumption are my main issues with Black Friday. Both promote over-buying and are detrimental to small brands. By joining in we'd just be part of the problem. However, I do understand why lots of small businesses feel they need to drop prices, especially this year when people are struggling to stay afloat. Many Black Friday 'bargains' are cheaply and unethically made and are bought on impulse only to end up in landfill when they fall apart. It's so easy to overspend on a 'haul' of cheap products that you don't need. This kind of consumerism is not good for the planet or our pockets but even the most conscious shopper can get swept away by it.”

Craig Hume of Utopia Computers in Kilmarnock: “Our local customers love the fact that we refuse to jump on the Black Friday bandwagon. They understand that we are here to offer them good value all year round, not just for 24 hours once every 12 months.”

Eva Veliotou , owner of Kingston Upon Thames jewellery shop, Rocco: “I think the whole Black Friday thing has peaked, with more and more people choosing small over big and waking up to the crass commercialism that underpins this annual event. Long may that continue, especially with so many small independents in a real struggle right now.”

#BlackFriday #ukeconomy #retail #retailmedia #survey