Black Friday retailers guide

Over the last few years, the UK’s obsession with Black Friday has grown undeniably. And it’s not just a one-day event anymore — it spans most of November. Alongside Black Friday and its sister event, Cyber Monday, November has become a significant event in the UK's retail calendar.

For a limited time only, consumers flock to their favourite retailers in the hopes of grabbing a bargain, bringing potential opportunities and challenges for businesses.

But what about the little guy? Big chains like Amazon already have a reputation for aggressively competitive pricing strategies, often pushing out smaller, independent retailers who can’t compete.

Fear not! There’s also a counter-movement helping small businesses during this time that’s rapidly gaining popularity.

What’s the deal with Black Friday?

Black Friday immediately follows Thanksgiving in the US, marking the beginning of the holiday shopping season. Amazon first introduced Black Friday to the UK in 2010 but it wasn’t until 2013 when other major retailers began participating and it gained widespread popularity.

And the Black Friday sales are getting earlier and earlier. They claim to provide substantial discounts and promotions for consumers, something money masterminds like Martin Lewis often discredit.

Fan or not, there’s no denying its apparent popularity, and where genuine bargains or deals are had, this can be a welcome relief in the run-up to Christmas when that must-have stocking filler is significantly reduced.

In 2023, UK consumers were expected to spend approximately £3.8 billion during Black Friday, with the average person spending £122, a year-on-year increase of £9 per person. Notably, 59% of UK adults planned to make purchases from retailers during the event, indicating its significant impact on consumer behaviour.

What about Cyber Monday?

The Monday immediately following Black Friday is known as Cyber Monday. It’s been around since 2005, and as its name suggests, this day of deals focuses on online promotions.

In the UK, Cyber Monday presents consumers with another potential opportunity for discounts before the festive season. In fact, consumers spent £1.8 billion online during last year’s Cyber Monday, further highlighting an opportunity for your online retail business this year.

But for small businesses, these levels of discounts aren’t always feasible. You may not have the staff or the stock to compete with the stalwarts of the high street.

Enter stage left, Small Business Saturday.

What is Small Business Saturday?

Interestingly, Small Business Saturday was established by American Express and launched in the UK in 2013.

It’s a grassroots campaign encouraging consumers to support local and independent businesses, usually taking place on the first Saturday of December, nestled neatly between Black Friday and Cyber Monday

The movement is seen as retaliation to the mass consumerism associated with Black Friday and a way of supporting the many small businesses, unable or unwilling to offer discounts in times when consumers are already prepared to part with their cash ahead of Christmas.

As a small retail business, it’s worth noting that in 2023 UK shoppers spent a collective £669m on this one day. Meanwhile, across the pond, consumers spent an estimated $17 billion on Small Business Saturday in the US, reflecting the event's growing influence.

On an individual level, there’s the potential for a commercially rewarding day of trading on just this one day.

Many small businesses will position themselves against the larger movement of Black Friday and Cyber Monday, instead focusing solely on Small Business Saturday.

Strategies for small and independent retailers

How can small and independent retail businesses manoeuvre this month of sales events? Check out these marketing strategies:

1. Start planning sooner rather than later: Create a marketing plan that outlines your promotions and costs them up appropriately. You’ll then need to consider effective inventory management to meet customer demands.

Also now’s the time to consider whether you need to rope in more staff to help in the lead-up and during the sales period.

2. What’s your promotion or offer?: What’s going to set your business apart from your competitors?

One way is to provide unique deals or bundles, like discounts or buy-one-get-one-free promotions. This could also be a prime opportunity to offload unwanted or slow-moving stock ahead of the holiday season, ready for the new season.

Don’t forget, you can just focus on Small Business Saturday, or even avoid any sales or promotions whatsoever.

3. Use your online presence: Spread the word! Update your social media channels, send marketing emails to your loyal customer database and consider spending some money on online advertising to tell people about your upcoming offer.

You could reach a broader audience and help people find your business, regardless of whether it’s online or a physical store. Just remember that other businesses might have similar ideas, so you’ll have to be clever in making yourself stand out.

4. Collaborate with other businesses: Similar to the previous point, you could partner with other local businesses to create joint promotions or events. Your mutual relationship could benefit you both, potentially doubling your audience.

Having another retailer, particularly one that’s local or aligned with similar values, enforces your messaging, promotes your respective brands and potentially serves new and exciting audiences you may not have otherwise been introduced to.

5. Find ways to enhance the customer experience: How can you personalise the service you provide? Loyalty programs, like stamps from your favourite cafe, reward customers for shopping with you and entice them to return. How can you replicate this scheme?

Don’t forget that exceptional customer service is non-negotiable. Helping your clientele — no matter how difficult they are — can build long-lasting relationships and return purchases.

6. Update your website: From wanting to know your opening times, research or making that all-important online purchase, make sure your website is optimised.

A good website is user-friendly, easy to navigate and suitable for mobile phones. If you want to promote a specific deal or message, make sure you have a dedicated landing page to help your customers find out more information.

You’ll also want to make sure your website is going to handle any increased traffic during these peak shopping periods.

7. Participate in Small Business Saturday: Highlight your status as a local business and encourage customers to support the community by shopping locally. Don’t give anyone a chance to miss you — emails, websites, socials and physical advertising will all help promote your business.

Black Friday insurance?

While there isn’t a specific insurance that covers Black Friday, you might want to consider whether your existing policy will withstand the busy period in an emergency, or if you might need to extend your cover.

These are some products that you might consider during these high-traffic periods:

• Public liability: With more customers visiting your premises, the likelihood of accidents or injuries may rise. This cover could help protect against third-party claims of injury or damage caused by your business.
• Product liability: Higher sales volumes might lead to more product-related claims.
• Cyber insurance: More online transactions could increase the risk of cyberattacks and data breaches, which this policy is designed to cover.
• Business Interruption Insurance: This can provide coverage for lost income if your business operations are disrupted due to unforeseen events.

Of course, there are potentially lots of different scenarios you could face during Black Friday and beyond, which may need specific cover. If you’re not sure whether you need insurance, get in touch and we’ll help assess your needs or adjust your existing coverage accordingly to make sure you get what you want.