As the dust settles on this year’s Black Friday and Cyber Monday shopping extravaganza, retail analysts are busy dissecting the trends and unravelling the evolving dynamics of consumer behaviour. The once-iconic kick-off to the holiday shopping season is in the process of undergoing change, leaving retailers and shoppers alike questioning its reliability.
Although it looks like more people shopped during the 2023 Black Friday than ever before, spending was rather flat – increasing by only 2.5% over 2022, which doesn’t even keep pace with inflation, which was 3.2% over the last 12 months.
Is the traditional shopping bonanza losing its shine?
The Extended Black Friday Week
One of the key shifts this year was the extension of the Black Friday event into a week-long affair. While retailers hoped to lure more shoppers with a prolonged window of discounts, some retail analysts suggest that this strategy might be backfiring. The extended duration has led to a sense of dilution, with shoppers becoming sceptical about the authenticity of the deals being offered throughout the week. The urgency and excitement traditionally associated with Black Friday and Cyber Monday seem to be dissipating, prompting consumers to question the true value of the bargains on offer.
Trust in the Era of Extended Discounts
Retailers are facing a dilemma as they grapple with the challenge of maintaining consumer trust during an extended sales period. Shoppers, who have gradually got used to the Black Friday concept brought over from the States, are now second-guessing whether the discounts are what they used to be – especially as they last throughout the entire week. Retail analysts point out that this shift in consumer sentiment highlights the need to look again at strategies if they are to keep shoppers’ trust.
The Changing Landscape of Retail Sales
With the cost of living crisis creating an atmosphere of austerity it’s no surprise that spending looks a little flat. People want to treat loved ones at Christmas but big purchases are being made to wait. So while Black Friday and Cyber Monday may have been reliable drivers of sales in the past, the 2023 shopping events have raised questions about their use going forward. Some retail analysts argue that relying on these events to make-or-break the year is becoming outdated. Instead, retailers are being advised to focus on a more sustained approach, streamlining operations and investing in technology all year round.
Evidence of the Need for Year-Round Streamlining
The evidence supporting a year-round focus on efficiency and technological investment is compelling. Retailers who embrace modern technologies, such as AI-driven inventory management, personalisation and seamless multi-channel integration, may well fare better in the future. Streamlining operations not only reduces costs but also enhances the overall customer experience, fostering loyalty beyond the fleeting excitement of the Black Friday and Cyber Monday events.
Retail at the Crossroads
As Black Friday and Cyber Monday continue to evolve, retailers find themselves at a crossroads. The traditional reliance on these events as the ultimate sales boost is giving way to a more nuanced understanding of consumer behaviour and the need for year-round strategic planning. The key for retailers now lies in striking a balance between the allure of exclusive discounts and the sustained investment in technology and operational efficiency year round.
An order management management system like Modulus 365, that integrates with your core ERP is a crucial ally which will help you prepare for 2024. By integrating such advanced solutions, you can benefit from streamlined operations, real-time inventory insights, and enhanced order fulfilment for both D2C & B2B. Finance leaders love the real time order flow into the Books, while operations professionals on the ground orchestrate the order fulfilment in the warehouse. Reduced labour costs delight the C-suite and of course customers love the efficient shopping experience!
With the ever present need to do more with less, maintaining high standards and great prices year round is a delicate balancing act. But with years of experience in streamlining retail processes we can help! Book a free no obligation systems health check with one of our expert analysts and get ready to thrive in 2024
![woman shopping[1]](https://www.modulus365.com/wp-content/uploads/2023/10/woman-shopping1-350x185.jpg "woman shopping[1]")
