What started as an all-American sales event, has now established itself in the Dutch market as well. Black Friday solidified its spot on the shopping calendar—everywhere. And not just as a single day in the year: it has been evolving into "Black Friday Week" and culminating in Cyber Monday. However, criticism of Black Friday is also growing quickly, from overconsumption and environmental impact to disappointed consumers and the rise of an all-year sales culture. In a study, 40% of Dutch consumers found the concept outdated and many feel Black Friday should be abolished entirely. Should we embrace Black Friday—or get rid of it as suddenly as it arrived?
Black Friday: a retailing prisoner’s dilemma
Black Friday is a balancing act between increased traffic and revenues versus staff strain, overloaded websites and systems, severe margin hits... and utter chaos. For some retailers, the drawbacks of Black Friday outweigh the benefits. "Personally, I’m not a fan of Black Friday—it shouldn’t exist in its current form," says Kristel Lanjouw, Head of Data & AI at IG&H. "Mass discounts are a symptom of misalignment. If you have the right product in the right place at the right time, discounts shouldn’t be necessary in the current form (even though we all know that's easier said than done)."
Retail inherently faces unpredictable challenges, from shifting customer behavior to supply chain disruptions or a pandemic. "Black Friday can be critical for revenue amidst these unpredictable challenges, but a bad Black Friday leaves a retailer vulnerable. Retailers are stuck in a prisoner's dilemma: if competitors participate, they can’t afford not to," Lanjouw explains. “The emergence of free shipping is a similar case—once a few major players made the shift to free shipping, other retailers had to follow suit and offer free shipping as well.” How can retailers balance competitiveness with smarter discounts? Or even rethink Black Friday as a concept?
Make your Black Friday clever
Participating in Black Friday is one thing, but making it clever demands some strategizing. The goal is to not make it another average Black Friday (like all your competitors). "Use it as a tool, not a tradition," Lanjouw advises. “Use discounts sparingly: only discount those items that truly need to move and make sure to never discount your basics or Never Out Of Stocks. Doing it this way, Black Friday becomes a valuable merchandise planning tool instead.”
Keep it clever. 30% of Dutch consumers are skeptical about Black Friday deals. In the extremely competitive retail landscape, two vital considerations are brand value and standing out to your customers. First, brand value is a critical factor. "For example, a premium outdoor brand might achieve major results with a 20% discount, but in doing so, may also risk cheapening its image," Lanjouw warns. Conversely, avoiding discounts altogether could alienate customers.
Second, make sure to stand out. Unique offers can help create a bond with customers. "There is no silver bullet discount percentage. But you can think broader than just discounts,” Lanjouw adds. "Why not make it an exclusive event? For example, offering unique products not available year-round. Create engagement. For example, let customers vote on which items to discount or only reveal deals at checkout to make Black Friday feel fresh and interactive—a true 'black box' experience if you will." By giving their best customers exclusive access to special products, retailers can stand out and strengthen customer relationships.
A fresh take on Black Friday
Some retailers are already redefining Black Friday. Initiatives like Green Friday, For Future Fridays or Slowvember promote sustainability over mass consumption. "Big companies must lead the way," Lanjouw argues. "Yes, retailers depend on the competition, but they can also redefine the rules. Solidarity within the sector is key. For instance, think repair days instead of discount days for increased brand trust and loyalty."
By either reimagining Black Friday or getting smart with their strategy, retailers can escape the discount trap, preserve their brand value and still drive traffic. And sometimes that takes a bold (first) move, breaking out of the prisoner’s dilemma that holds most retailers in its grip. What do you think about Black Friday—here to stay or time to go away?
Kristel Lanjouw
Head of Data & AI
T: +31 625493984
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