How retailers can capitalize on Black Friday
By Don-Alvin Adegeest Black Friday may be a saving grace for many retailers, who to date faced a tumultuous year and are currently navigating lockdown 2.0.
For fashion businesses, Black Friday may be an opportunity to sell older and slow-moving stock ahead of Christmas and the heavy discounting season.
Discounts are deep
Data analytics giant Edited in its latest Black Friday report says in the U.S. the most popular advertised discount is between 40-50 percent, representing 25 percent of discounted men’s and womenswear products. At this time in 2019, the strongest advertised discount was between 20-30 percent, showcasing retailers are discounting deeper earlier.
In terms of product categories, tops have emerged as the hero category of the pandemic wardrobe, selling globally with a notable success of an 11 percent increase YoY in the U.S. market.
The advantage of small size ranges
As the second wave approaches, consumers will be hesitant to go into stores creating an opportunity to reduce products without a wide size range. In the U.S., accessories equal nearly 25 percent of products in stock and 20 percent in the UK. Across each region last year, it was one of the top three categories reduced. Coupled with waning interest in handbags and jewelry as consumers spend more time indoors, accessories are the ideal category to reduce in order to minimize returns during the sale period. Edited advises to not discount items such chunky chain-link necklaces and drop earrings as these were seen on the catwalks in September and will remain desirable going forward.
Edited also suggests to pull back on categories with more complicated sizing as the sales approach. Currently, there are 16 percent and 9 percent fewer bottoms products available in the U.S. and UK respectively compared to last year, while footwear available online has declined 5 percent and 9 percent year on year.
The key to the Black Friday sales is to not discount current performing categories and those that have longevity going forward. Timeless fashion that embraces comfort and versatility will remain in demand, whereas a surplus in items such occasion wear, swimwear and skinny jeans could shift faster when on sale.