As Black Friday weekend nears, Retail Week takes a look at what retailers can do to stand out from a very busy crowd.
In what used to be a one-day event where customers would have to battle for bargains, the shopping phenomenon has grown to span days – or even weeks.
Retailers such as TK Maxx, Argos, Currys, John Lewis and Very have started their promotions in early November, with Boots telling Retail Week it expects to have its “biggest ever” Black Friday for deals, and hopefully sales, as the event falls on payday this year.
Sainsbury’s boss Simon Roberts also forecast that the grocery giant was on for its “biggest ever Black Friday”.
Insights from Adobe’s UK holiday forecast shows that this year’s Black Friday weekend will see growth of 9% to reach £1.13bn in revenue, while Cyber Monday will make £940.1m.
Seasonal discounts are expected to be in the range of 6% to 24%, with Adobe projecting discounts to reach a peak of 17% for personal care products, 17% for toys and 22% for televisions.
While discounts and deals clearly resonate with the UK consumer, Heidi Stephens, strategy partner at marketing agency RAPP, says customers now expect reduced prices for the whole holiday season.
“Winning sales doesn’t have to be about price, this is a season about adding value”
Heidi Stephens, strategy partner at RAPP
“Retailers need to think like shoppers and add something extra. That could be gift wrapping, extended returns, the ability to personalise an item, or leveraging customer data to serve up the right product, at the right price, in the right channel.”
She warns that “Black Friday will inevitably eat itself the way the traditional summer and January sales periods did” if retailers continue to only focus on discounts.
Crowded market
As the UK climbs out of a cost of living crisis and deals with life under a new government, they still remain cautious about spending in the run-up to Christmas.
Research by YouGov shows 32% of UK adults will make a purchase on Black Friday, but only 10% are planning to spend more than last year.
Other shoppers are worried that deals aren’t genuine, which is something Currys is trying to change with its promise that none of its 3,000-plus Black Friday deals have been cheaper in the last six months.
Like Currys, Analytic Partners associate vice president Justine O’Neill advises retailers to have a strong advertising campaign on channels such as TV and online, to capture a wide audience before moving towards “conversion-focused” digital advertising close to the event.
“To stand out in a crowded market, retailers need a well-coordinated omnichannel approach that maximises the role of each channel,” she explains.
“Retailers can enhance engagement by combining emotional storytelling on TV with targeted digital ads, while leveraging ‘test and learn’ strategies to fine-tune approaches”
Justine O’Neill, senior director at Analytic Partners
“Strategic timing and intense advertising during this period can drive substantial sales surges and contribute to long-term brand value.”
This is true for social media advertising too, as Adobe’s forecast expects Black Friday to see a 50-55% rise in retailer visits driven by social media.
Lucy Evans, head of marketing at digital agency Tall, agrees that a strong digital presence is “crucial” for success.
“In order to drive sales, it’s vital that businesses form a plan focusing on each audience individually with bespoke ads and messaging,” she says.
“This is where having a robust digital strategy in place can really pay dividends for sales growth.”
She adds that “genuinely good” discounts will also do well, but adds if retailers haven’t yet felt the benefit of Black Friday, it’s time to “focus on other tactics to drive sales during peak season”.
Reap the rewards
Alternative offers may be the way to go for retailers looking to provide something different for customers while still reaping the benefits of Black Friday.
Discounts tend not to lead to an increase in brand loyalty and encourage one-off purchases, according to Bronwen Lambert, business development manager at media agency Space and People. So personalisation may be the way to go.
“By its nature, Black Friday and blanket deals across a full range of products can appear very impersonal and cold,” she points out.
“A strategy to consider would be personalised deals and codes based on what has been purchased historically.
“Rewarding those shoppers who engage with Black Friday deals with further rewards and offers, which are redeemable in the first quarter of the following year, will also encourage return visits and greater brand loyalty”
Bronwen Lambert, business development manager at Space and People
Lambert uses Lush, Jo Malone, and Rituals as examples of retailers “stepping up their game” with personalised experiences from hyper-customised offers, free samples, birthday discounts and in-store complimentary services.
“My suggestion is to reach consumers directly through in-person, experiential activity such as pop-ups or immersive activations to bring the brand to life and offer a personalisation element,” she adds.
O’Neill echoes this view as she believes customer expectations are evolving to include value through rewards, personalised offers and benefits beyond weekend-long price cuts.
She sees these themes as integral for Black Friday in 2025 and beyond, as well as a stronger omnichannel focus and leveraging retail media networks as brands look to differentiate in a saturated market.
Retailers will need to innovate and move beyond the usual promotions if they still want to capture that all-important seasonal spend, especially during a time when customers may be more picky with who they choose to shop with.
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