What: Experts predict that Black Friday 2024 will see cautious consumer spending, supply chain challenges, and strategic promotional efforts as retailers prepare for the upcoming sales period.

Why it is important: Understanding these dynamics is crucial for retailers to effectively plan their strategies, optimise inventory management, and maximise sales during a critical shopping season.

Black Friday 2024, set for November 29, is approaching, and retailers are strategising to navigate consumer behaviour and supply chain challenges. While consumer confidence has improved with easing inflation in the US and UK, spending remains cautious. Analysts note that while interest in Black Friday may increase, retailers must work hard to demonstrate value and incentivise spending. The luxury sector faces a slowdown, with consumers preferring direct brand purchases over multi-brand retailers.

Supply chain disruptions pose additional challenges. Potential strikes at US East Coast ports could affect apparel imports, prompting retailers to consider more expensive air freight options. Geopolitical conflicts have also disrupted shipping routes between Asia and Europe. These factors may lead to less steep discounts as retailers manage increased costs.

In terms of inventory, UK retailers face excess summer stock due to a rainy season, while US inventory levels are more balanced. Beauty products are expected to perform well due to the "lipstick effect," where consumers indulge in smaller luxuries. Retailers are extending Black Friday promotions throughout November and December, focusing on precision over mass discounts to protect margins.

Promotional strategies will include value-driven offers like bundled deals and loyalty benefits. These approaches are particularly relevant for luxury brands aiming to maintain their positioning. The success of Black Friday will influence the entire holiday sales period, with retailers seeking sustainable growth through strategic planning.

Navigating Black Friday 2024: strategies and challenges