November 26, 2008
Nielsen Offers List of Black Friday Don’t Do’s
Black Friday is important
both in dollar terms and psychologically for those managing and working
in retail. That is true, perhaps even more so, this year as many in the
industry are seeking to scratch out ways to remain viable in an extremely
difficult business environment. The good folks at Nielsen [a sponsor of RetailWire]
have published a list of the 10 most common mistakes that retailers make
on Black Friday with the hope that perhaps they can be avoided this year
and in the future.
1. Fear of new categories
Nielsen wants to know,
who said grocers can’t sell popular video game titles and why can’t electronic
stores sell soft drinks and snacks?
2. What’s the point?
Stores need to determine
what they want from Black Friday promotions. Are they looking to bring
in new shoppers, drive traffic to sell non-sale items, etc.?
3. Measure what you
treasure
It’s important to have
measurable objectives and measure them.
4. Make friends and
influence purchases
It’s time for everyone
to be on their best behavior and performing at a high level. Unhappy shoppers
don’t come back for more and spread the unhappy experience with family,
friends and, in some instances, complete strangers. Unpleasant experiences
tend to be magnified when shoppers find they aren’t just battling the crowds
but the retailer, as well.
5. Be true to your
best shoppers
Loyalty is a two-way
street that is open year-round. Retailers with loyalty programs need to
develop special rewards for the holidays for consumers who have spent the
most over the course of the year.
6. Black Friday is a state of mind
The uniqueness of Black
Friday should not be confined to a few morning hours after stores open.
Keep the excitement going throughout the holiday.
7. Out-of-stock and
out of business
Nothing is worse than
making a shopper wait for a hot holiday item for them to find out that
you’re out-of-stock. Deliver on promises and keep shoppers informed to
the point of overdoing it if supplies of an item are limited.
8. Keep ’em moving
Shoppers are on a mission
and it’s up to retailers to help speed them along on their shopping rounds.
Nobody likes to wait and no amount of holiday cheer will change that.
9. Discounts go deep
The savings better be
serious if you want shoppers to seriously consider shopping in your stores.
10. Corporate espionage pays
You need to know what
the competition is doing. Put agents in the field to check prices and talk
to consumers shopping the competition. Use that information to respond
this year and in the future.
Discussion Questions:
What is your list of positive steps that retailers should take to succeed
on this and future Black Fridays?
BrainTrust
Recent Discussions
Discussion Questions
Poll
Of the items on Nielsen’s list, the most resonant is “Make friends and influence purchases.” But how to accomplish this goal on the highest-traffic (if not highest-volume) day of the year? I would focus on two other key points on the list: First, have what you advertised in stock, or at least display enough “truth in advertising” to forewarn customers about average quantities per store. Running out of hot items literally minutes after opening at 5:00 am (or earlier) smacks of terrible inventory management.
Second, make sure to have “all hands on deck” in terms of customer service. The customer may expect big crowds and long lines–to some degree, that’s part of the entertainment–but also expects to see checkout lanes handled as efficiently as possible. Retailers send the wrong message if their execution is at its worst on a day like Black Friday with a huge amount of cross-shopping.
I would add “Don’t let the promise of short-term volume compromise long-term brand equity.” This past week, our firm walked the high-end boutiques along Melrose Avenue and Robertson Blvd in Los Angeles. In store after store, we were greeted immediately with “Everything in the store is an additional 40% off” and whispers of “Everything in this room is 70% off.” I don’t know about you, but I wouldn’t feel like paying full price for Alexander McQueen ever again after seeing the drastic slashes. (Boy, they must have had a lot of margin to give up, right?) These discounts also had the effect of cheapening others’ brand premise along the block. When we walked into a more moderate rocker-brand boutique down the street and saw that nothing was marked down, I felt a bit indignant (who are they to stay at full price on their $140.00 screened t-shirts when “real” designers are getting drastic?) Interesting that we stuck around for quite a while in the completely full price Chanel boutique…order was restored!
First and foremost, DO NOT put all your eggs in the Black Friday basket; the most profitable period is the last 10 days before Christmas Day.
Second, there is NO REASON, I repeat, NO REASON to be opening at 4, 5, or 6 AM on Black Friday. GET REAL! Enjoy Thanksgiving Day with your family, then get some rest and have your store open at say 9:00 am on Black Friday for a full fun day of business, and yes, it should be FUN.
You will never retain quality employees with UN-NEEDED, stupidly long hours, not to mention that you can provide good, basic service when your staff is stretched to cover these inhumane long hours.
Get back to basics, study some Black Friday ads of 20 years ago and learn from them!
I agree with those that focus on “having all hands on deck.” In this market the last thing to have happen is to actually have a new customer come in and there is no one to point them to where an item or category is, how to choose which electronic item is best and of course, having them wait endlessly at the front end.
I shopped Black Friday last year and ran into “out-of-stock.” This is the time to get the managers out on the floor to handle the exceptions and problems. Be nimble–be ready to offer alternatives to out of stock items. Having the managers on the floor setting the customer-service tone is important. And paying attention to the employees who work during this time with some kind of recognition programs or special discounts.
Embedded in many of the notes and comments is the concept of “experiential retailing.” Visiting a retail store is an experience. Doing it on Black Friday is an even more intense experience. The opportunities for building loyalty, attracting new customers and enhancing your brand are enormous…as are the risks.
My suggestion for this or any other “event” is to simply make it an “event.” Last year, some retailers had coffee and hot cider and made efforts to create comfort and cheer for the early line up of consumers. Very smart. Take it further. Make the store a celebration.
I shopped Black Friday last year. And the experience was unsettling. Not only were the vast lines, out-of-stocks, and sheer unmanageability of the experience daunting, but the grim approach to business was upsetting as well. Make this FUN!
As the results from today’s Instant Poll illustrate, the number one issue to avoid is making a bad first impression. Consumers have greater choice than ever before as to where they spend their hard earned dollars. Those retailers offering customer-centric experiences will win. How? 1) Greet and acknowledge, through a verbal welcome, or minimally through eye contact and a warm smile 2) Engage–establish dialogue and seek to help resolve the customer’s needs, and 3) At the point of sales transaction, thank the customer for their business and offer a genuine parting comment. The critical component to the retail and brand experience is that it has been carefully designed to be consistent and intentional, supported top-down from managers to front-line staff.
I agree with my colleagues. #4 – Make friends and influence purchases, leads the way. If the retailer accomplishes nothing but to bring the shopper back to their store, they win in these difficult times.
But when will the real Black Friday come? Black Friday of course is when the retailer’s P&L for the year goes from red to black. It won’t likely be this Friday. Maybe not next. Maybe not at all.
Early this year I had the opportunity to consult and discuss Black Friday with a national retail chain, and created a rather extensive summary for the client that included many specific suggestions. However, in the most general and shortest terms, here are three of the ones that I recommend most:
1. Do more than simply providing hot sales on items you already carry all year long and also all the obvious holiday merchandise. Surprise the consumer and put out some unexpected merchandise to woo them, and make a point to get an exclusive offering with some of your suppliers so that you are the only retailer in your COT to carry some special items.
2. Don’t overlook the staple items in sections such as HBC. Make sure your shelves are well stocked at all times even with every day items not necessarily directly associated with a holiday shopping day. At this time of year consumers also buy things for themselves including make up and beauty items, oral health products such as whitening and fresh breath remedies, personal hygiene, etc.
3. Have points of differentiation in your stores in the merchandise offerings, decorating schemes, music selections being played, etc. but more importantly, determine a message and execute one to the consumer in advance of Black Friday and all during the holiday that generates a buzz and consumer referrals, no matter how well known your store brand might already be.
This is a great list and following it may indeed slightly ease the pain of a recessionary environment.
I am particularly fond of Number Four. Nothing worse than employees watching their cell phones or complaining to each other about having to work the day after Thanksgiving while customers stand around waiting for help and getting more ticked off by the minute. Everyone is stressed. Make sure your people reduce it, not add to it.
Just one–crowd control. Keep the lines short and prevent bottlenecks throughout the stores by distributing popular merchandise in various areas. Yes, this would involve dedicated staff, but we all know they will more than pay for themselves by creating a more pleasant shopping environment.
All these points hit the nail on the head in terms of coping and succeeding on Black Friday. My only hope is that managers and associates do not fear Black Friday! We need to embrace and look forward to BF! I think it truly sets the stage for the season and we all want to have a smooth time.
It is really up to the store leadership to set the tone and define the culture of how we handle Black Friday. All that other stuff is common sense. The only component I want to add (and we’ve been harping about it) is to monitor margins. Make sure you are optimizing your displays and stockouts to maximize margin potential.
The comment by Ken Allan…”there is no reason to be open at 4, 5 or even 6 am the day after Thanksgiving” might be the most ridiculous thing I ever read. Has Ken ever been at the mall or a freestanding retailer at these hours…there are lines of customers waiting to get in…wow!!!
More Discussions
As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…Is Supply Chain Volatility Here To Stay?
Can we expect an ongoing volatility to remain in terms of retail supply chain?Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?
Of the items on Nielsen’s list, the most resonant is “Make friends and influence purchases.” But how to accomplish this goal on the highest-traffic (if not highest-volume) day of the year? I would focus on two other key points on the list: First, have what you advertised in stock, or at least display enough “truth in advertising” to forewarn customers about average quantities per store. Running out of hot items literally minutes after opening at 5:00 am (or earlier) smacks of terrible inventory management.
Second, make sure to have “all hands on deck” in terms of customer service. The customer may expect big crowds and long lines–to some degree, that’s part of the entertainment–but also expects to see checkout lanes handled as efficiently as possible. Retailers send the wrong message if their execution is at its worst on a day like Black Friday with a huge amount of cross-shopping.
I would add “Don’t let the promise of short-term volume compromise long-term brand equity.” This past week, our firm walked the high-end boutiques along Melrose Avenue and Robertson Blvd in Los Angeles. In store after store, we were greeted immediately with “Everything in the store is an additional 40% off” and whispers of “Everything in this room is 70% off.” I don’t know about you, but I wouldn’t feel like paying full price for Alexander McQueen ever again after seeing the drastic slashes. (Boy, they must have had a lot of margin to give up, right?) These discounts also had the effect of cheapening others’ brand premise along the block. When we walked into a more moderate rocker-brand boutique down the street and saw that nothing was marked down, I felt a bit indignant (who are they to stay at full price on their $140.00 screened t-shirts when “real” designers are getting drastic?) Interesting that we stuck around for quite a while in the completely full price Chanel boutique…order was restored!
First and foremost, DO NOT put all your eggs in the Black Friday basket; the most profitable period is the last 10 days before Christmas Day.
Second, there is NO REASON, I repeat, NO REASON to be opening at 4, 5, or 6 AM on Black Friday. GET REAL! Enjoy Thanksgiving Day with your family, then get some rest and have your store open at say 9:00 am on Black Friday for a full fun day of business, and yes, it should be FUN.
You will never retain quality employees with UN-NEEDED, stupidly long hours, not to mention that you can provide good, basic service when your staff is stretched to cover these inhumane long hours.
Get back to basics, study some Black Friday ads of 20 years ago and learn from them!
I agree with those that focus on “having all hands on deck.” In this market the last thing to have happen is to actually have a new customer come in and there is no one to point them to where an item or category is, how to choose which electronic item is best and of course, having them wait endlessly at the front end.
I shopped Black Friday last year and ran into “out-of-stock.” This is the time to get the managers out on the floor to handle the exceptions and problems. Be nimble–be ready to offer alternatives to out of stock items. Having the managers on the floor setting the customer-service tone is important. And paying attention to the employees who work during this time with some kind of recognition programs or special discounts.
Embedded in many of the notes and comments is the concept of “experiential retailing.” Visiting a retail store is an experience. Doing it on Black Friday is an even more intense experience. The opportunities for building loyalty, attracting new customers and enhancing your brand are enormous…as are the risks.
My suggestion for this or any other “event” is to simply make it an “event.” Last year, some retailers had coffee and hot cider and made efforts to create comfort and cheer for the early line up of consumers. Very smart. Take it further. Make the store a celebration.
I shopped Black Friday last year. And the experience was unsettling. Not only were the vast lines, out-of-stocks, and sheer unmanageability of the experience daunting, but the grim approach to business was upsetting as well. Make this FUN!
As the results from today’s Instant Poll illustrate, the number one issue to avoid is making a bad first impression. Consumers have greater choice than ever before as to where they spend their hard earned dollars. Those retailers offering customer-centric experiences will win. How? 1) Greet and acknowledge, through a verbal welcome, or minimally through eye contact and a warm smile 2) Engage–establish dialogue and seek to help resolve the customer’s needs, and 3) At the point of sales transaction, thank the customer for their business and offer a genuine parting comment. The critical component to the retail and brand experience is that it has been carefully designed to be consistent and intentional, supported top-down from managers to front-line staff.
I agree with my colleagues. #4 – Make friends and influence purchases, leads the way. If the retailer accomplishes nothing but to bring the shopper back to their store, they win in these difficult times.
But when will the real Black Friday come? Black Friday of course is when the retailer’s P&L for the year goes from red to black. It won’t likely be this Friday. Maybe not next. Maybe not at all.
Early this year I had the opportunity to consult and discuss Black Friday with a national retail chain, and created a rather extensive summary for the client that included many specific suggestions. However, in the most general and shortest terms, here are three of the ones that I recommend most:
1. Do more than simply providing hot sales on items you already carry all year long and also all the obvious holiday merchandise. Surprise the consumer and put out some unexpected merchandise to woo them, and make a point to get an exclusive offering with some of your suppliers so that you are the only retailer in your COT to carry some special items.
2. Don’t overlook the staple items in sections such as HBC. Make sure your shelves are well stocked at all times even with every day items not necessarily directly associated with a holiday shopping day. At this time of year consumers also buy things for themselves including make up and beauty items, oral health products such as whitening and fresh breath remedies, personal hygiene, etc.
3. Have points of differentiation in your stores in the merchandise offerings, decorating schemes, music selections being played, etc. but more importantly, determine a message and execute one to the consumer in advance of Black Friday and all during the holiday that generates a buzz and consumer referrals, no matter how well known your store brand might already be.
This is a great list and following it may indeed slightly ease the pain of a recessionary environment.
I am particularly fond of Number Four. Nothing worse than employees watching their cell phones or complaining to each other about having to work the day after Thanksgiving while customers stand around waiting for help and getting more ticked off by the minute. Everyone is stressed. Make sure your people reduce it, not add to it.
Just one–crowd control. Keep the lines short and prevent bottlenecks throughout the stores by distributing popular merchandise in various areas. Yes, this would involve dedicated staff, but we all know they will more than pay for themselves by creating a more pleasant shopping environment.
All these points hit the nail on the head in terms of coping and succeeding on Black Friday. My only hope is that managers and associates do not fear Black Friday! We need to embrace and look forward to BF! I think it truly sets the stage for the season and we all want to have a smooth time.
It is really up to the store leadership to set the tone and define the culture of how we handle Black Friday. All that other stuff is common sense. The only component I want to add (and we’ve been harping about it) is to monitor margins. Make sure you are optimizing your displays and stockouts to maximize margin potential.
The comment by Ken Allan…”there is no reason to be open at 4, 5 or even 6 am the day after Thanksgiving” might be the most ridiculous thing I ever read. Has Ken ever been at the mall or a freestanding retailer at these hours…there are lines of customers waiting to get in…wow!!!