Black Friday. Marvellous or Madness?

As I wade through my Black Friday-swamped inbox with temptation in every subject line I wonder if Black Friday is simply marvellous or quite frankly madness.

Here at the WCD Group we tend to think the former and see a healthy spike in sales over this special weekend as people claim their discounts on water coolers, instant hot taps and filter accessories; predominantly for use in the home; a perfect treat ready for Christmas.

It’s estimated that ￡10bn could be spent in the UK over the Black Friday period, ￡2.5bn in a single day, as shoppers turn out in search of a bargain ahead of Christmas up and down the British high street and online.

Many retailers say it's a vital opportunity to boost market share and provide customers with ‘real deals’, while other high street faithfuls, such as Fat Face, suggested it is madness to cut prices now and don’t take part.

"It's bad for customers, it's bad for business, it's bad for UK retail," said CEO Anthony Thompson. "What customers are looking for at Christmas is great value for money, not make-believe promotions and fake prices, and that's often what they get on Black Friday.”

Some believe it just brings revenue into November from December without reflecting any real growth and plays havoc with reduced margins. Customers can be sceptical about the real deals on promotion in the frenzy to grab the best bargains, and not be sucked into the gimmicks nor succumb to the money off advertising and buy for the sake of the discount.

The published figures show the successful flip side for other retailers, where the big boys working with manufacturers a year out in order to produce the goods they want at genuine Black Friday price points, and gain market share.

Overall most retailers on- and off-line find it difficult not to join in. They may be reluctant to step up with full-price sales at the busiest time of the year, but if they don't join in, they may lose out to rivals who do. Discount supermarket Lidl is getting involved for the first time this year, whilst rival Asda announced Black Friday sales this week, after sitting it out in 2015 and 2016.

As ever the intense competition has pushed some retailers to start sales earlier and earlier, as far back as October and to offer even more items at discount each year.

But for smaller online retailers like ourselves, there's no question over whether to take part. There is so much online traffic, it's about making the most of it while you can and I believe Black Friday is helping to promote a new consumer culture during the build-up to Christmas, helping to support and boost the retail sector, which is a good thing.