‘Retailers must be smarter than ever to pass Black Friday demand test’

Coupled with a second lockdown across England, it means retailers need to think smarter than ever and take urgent steps to keep up with demand and avoid the pitfalls created by these once-in-a-lifetime circumstances.

While it’s true that retailers have already begun preparing for an extraordinary peak season, have they done enough? 

There are three key considerations:

1. Flexibility

Flexibility has never been more important. Economic uncertainty could mean Black Friday 2020 is more appealing than ever and shoppers place all their festive orders over the discount period. Equally, as pennies are pinched, we may see people delaying their purchases until after lockdown – and Black Friday – have passed.  

No matter which way the wind blows, remaining nimble and adaptive will be the key to success. While most high street shops will be closed that does not mean they cannot still be central to peak success. 

First, if retailers do not already have a click-and-collect offering in place, they should consider investing in one – in line with government guidelines. They should also re-examine how they use their physical stores to build capacity. 

Not only does that boost convenience by allowing shoppers to buy items online then pick them up at their nearest collection point when it suits them, but it also ensures social distancing guidelines are maintained and reduces the number of home deliveries needed. 

Additionally, retailers should consider how their high street locations can be used as local distribution and fulfilment centres. That can take significant pressure away from key distribution centres, helping alleviate the strain retailers face during peak while also maintaining a better level of service for customers.

2. Beware overpromising

Networks and carriers are currently operating at near-maximum capacity. During Black Friday and peak season, as ecommerce sales rocket, overpromising and – literally – failing to deliver is a risk that retailers cannot afford to take.

As vital as it is to ensure operations are running smoothly and deliveries can be fulfilled, retailers should also be wary of overpromising on the speed of fulfilment. While it is true that the speed of delivery is important to many, it is also the case that not everyone – especially those planning ahead – will need their items immediately. 

By rethinking the expectations retailers set with customers about fulfilment this Black Friday and in the run-up to Christmas, as well as ensuring they have a good range of delivery options available, retailers can build much-needed capacity into distribution networks. It also means they will have fewer disappointed customers, which can boost loyalty, basket size and growth.

Steps could be as simple highlighting slightly longer delivery options – whether that’s next-day or offering a three-to-five-day delivery window – for products that do not need rapid fulfilment. As more people consider how their lifestyles affect the environment, it may even be possible to explore new options that group deliveries to different postcodes into one, taking a bit longer to fulfil but reducing emissions.

4. Watch stock levels and location

Black Friday has evolved from a day of discounts to a week (or more) of Sales, so retailers need to keep an eye on stock to ensure they can cater to the increased ecommerce demand that is expected and help peak planning. Forming and maintaining strong and reliable logistics partnerships can help them redistribute much-needed stock to the most valuable locations across the country. 

Regardless of whether such partnerships are longstanding or ad hoc, the investment will be well worth it because it will ensure much-needed stock is relocated where it is most needed when it is most needed. 

What this boils down to is that Black Friday and the 2020 retail peak period are going to be very different from previous years. 

As a perfect storm of retail logistics challenges brews, Black Friday will be the initial test for retailers and logistics companies, providing a good indication of their peak readiness.

It is vital that retailers act now to unlock distribution capacity then, once the Black Friday milestone has passed, be prepared to take on board any lessons learnt and react swiftly to adjust their operations ahead of the wider Christmas peak.  

No matter what the coming months hold, one thing holds true: retailers must ensure they put their customers’ needs at the heart of their peak season planning to secure loyalty, protect their brand reputation and start 2021 happy.