Small retailers can benefit from both Black Friday and Christmas if they have the right plan in place, says the Managing Director of business lender Boost Capital, Alex Littner.
“Whether a business is participating in the Black Friday sales on 25 November or holding off until December, one thing is certain – having a happy festive season means planning now,” explains Littner.
He believes small firms can be lax when it comes to ordering enough stock and getting a marketing strategy in place, with three out of four not having a strategy in place for boosting Christmas sales.
He says: “Such a casual attitude will mean SMEs (small and medium-sized enterprises) will lose out severely to their larger rivals, all of whom will have plans to win customers in the weeks to come.”
Last year, SME retailers that took part in Black Friday reported average sales that were 40 per cent higher on the day.
However, as Littner points out small retailers can’t always afford to match the rock-bottom prices of larger competitors so his advice is to weigh up whether the price cuts on the 25 November will yield sufficient profit overall.
Britain spent almost £76 billion in the up to the festive season last year and Littner says the most common method to attract customers is price promotion.
“As with Black Friday, the challenge is to develop a pricing tactic that appears to shoppers to be a good deal, but still gives the business owner an adequate profit margin.”
Being small and independent can be an advantage so smaller retailers should play to their strengths.
“This may be that it is traditional and family-run, innovative, fresh or closely in touch with its customers and part of the local community,” Littner says.
His advice to bricks and mortar retailers is to join with other shops and run a series of late-opening evenings with entertainment and to use use old-fashioned posters, flyers and email newsletters.
“The important thing is to let customers know as soon as possible what’s on offer and why should shop with you this Christmas.”
