Black Friday: A critical period for Australian Retailers

Black Friday, the day after Thanksgiving in the United States, has become a global shopping phenomenon in recent years. While it originated in the US, Black Friday has now spread to over 70 countries, including Australia.

For Australian retailers, Black Friday is one of the most important shopping days of the year. In 2022, Australians spent over $7 billion during the four-day Black Friday sale period , making it the biggest shopping event in Australian history.

There are a number of reasons why Black Friday is so important for Australian retailers. First, it provides an opportunity for retailers to clear out their inventory and make way for new products. Second, Black Friday sales can help to boost retailers' profits and bottom lines. Third, Black Friday can help retailers to attract new customers and build brand loyalty.

One of the key reasons for the success of Black Friday in Australia is the rise of e-commerce. Online shopping has made it easier than ever for Australians to find and purchase products from a wide range of retailers, both domestic and international.

Another reason for the popularity of Black Friday in Australia is the fact that it coincides with the start of the Christmas shopping season. Many Australians take advantage of Black Friday sales to get a head start on their Christmas shopping.

For Australian retailers, Black Friday is an opportunity to capitalize on the increased consumer spending that takes place during this time of year. By offering deep discounts and promotions, retailers can attract customers and generate significant sales.

The next few weeks leading up to the New Year could contribute up to half of the entire year’s business for most retailers. This year, given the cost of living pressures we are witnessing in Australia, the importance of this period of trade is critical for almost every retailer. A bad Black Friday and Christmas peak trade could be an existential crisis for some retailers that are already battling the impact of the muted consumer spend.

Here are some of the key benefits of Black Friday for Australian retailers:

• Increased sales:?Black Friday is one of the busiest shopping days of the year, and retailers can see a significant increase in sales during this period.
• Boosted profits:?Black Friday sales can help to boost retailers' profits and bottom lines.
• New customers:?Black Friday can help retailers to attract new customers and build brand loyalty.
• Clearance of inventory:?Black Friday sales provide an opportunity for retailers to clear out their inventory and make way for new products.
• Increased brand awareness:?Black Friday can help to increase brand awareness for retailers, both large and small.

However, there are also some challenges associated with Black Friday for Australian retailers. One challenge is the fact that Black Friday is a highly competitive event. Retailers need to offer attractive discounts and promotions in order to stand out from the competition.

Another challenge is the fact that Black Friday can lead to increased customer returns. Retailers need to have a robust returns policy in place to deal with this.

While the retail industry benefits immensely from this period of elevated business activity, all the other industries such as their suppliers and delivery partners also consider this period to be a peak period.

Any disruptions during this period could lead to significant loss in business as well as brand reputation. Planning is key to ensuring that there are no significant disruptions that undermine the expected performance.

Here are some tips for Australian retailers to make the most of Black Friday:

• Plan ahead:?Retailers should start planning for Black Friday well in advance. This includes developing a marketing strategy, identifying the products that will be on sale, and ensuring that there is sufficient inventory.
• Offer attractive discounts and promotions:?Retailers need to offer attractive discounts and promotions in order to stand out from the competition. Retailers should also consider offering loyalty programs and other incentives to customers.
• Make it easy to shop. Making sure that the digital channels are easy to navigate and that the checkout process is fast and efficient. Retailers should also offer multiple payment options so that shoppers can choose the one that is most convenient for them.
• Promote the sales. Promoting Black Friday sales on multiple channels such as the website, social media, and in email marketing campaigns. Retailers should also consider running ads to reach a wider audience.
• Invest in resilient technology:?Digital commerce is essential for retailers who want to benefit from Black Friday. Retailers need to ensure that their digital platforms are able to handle a high volume of traffic and that their checkout process is smooth and efficient.
• Have a robust returns policy in place:?Retailers need to have a robust returns policy in place to deal with the increased customer returns that come with Black Friday. The returns policy should be clear and easy to understand, and it should be easy for customers to return items.
• Provide excellent customer service:?Retailers need to provide excellent customer service during Black Friday. This includes being responsive to customer inquiries and resolving any issues quickly and efficiently.
• Elevate the technology support: The role of technology in modern day retail is now more pervasive than ever. Ensuring that there is elevated 24/7 support for all the critical trading systems will avoid any catastrophic events during crucial trading periods.

At Infosys Consumer, Retail & Logistics , we have been working with Australian organisations across the entire value chain to ensure that they can make the most of Black Friday and boost their sales and profits.

Here’s wishing all our friends and clients a wonderful trading season over the next few months.

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