Published Tuesday 24th November 2020

As the ongoing pandemic continues to influence the way retailers do business, and the shift to ecommerce becomes exponentially more important, we can expect to see some changes and challenges this Black Friday.

Businesses must ensure they have robust supply and distribution chains in place to keep up with the increased demands as consumers take part in the sales, and the demand for ecommerce channels continues to rise.

As cost reduction consultants, we have been working with retailers throughout the pandemic to support them through these unique challenges. To find out how we could help you manage your expenses, and develop a cost reduction strategy, get in touch with our expert team here at Expense Reduction Analysts.

Online Sales this Black Friday

The upcoming Black Friday and Cyber Monday sales are a significant fixture in the retail calendar. This year, the sales are, of course, going to be primarily an online affair. Despite the absence of the traditional in-store chaos, there will no doubt be other challenges posed by the increased demand.

It is anticipated that online Black Friday sales will peak like never before. Some researchers have suggested that online Black Friday sales in the UK are expected to increase by 14% when compared to last year. This will put further strain on an already struggling delivery network.

Failure to Shift to Ecommerce

With offline Black Friday sales dropping to virtually nothing as non-essential stores remain closed during lockdown, a failure to wholeheartedly embrace the shift to ecommerce could prove catastrophic.

Primark’s resistance to commit to an online store has historically baffled consumers and competitors. Reports have suggested that the clothing retailer was losing £100 million a month during the lockdown period, something that could have been mitigated by a well-established online store.

If retailers hope to experience a successful Black Friday campaign, they must assess how online shopping can be implemented more effectively.

Strain on Distributors and Supply Chains

For the companies that have made the successful move to ecommerce, challenges with distribution are expected.

Unfortunately, the ‘new normal’ remains rooted in uncertainty, with supply chains facing delays and reduced operations. Fulfilling the expected jump in demand will rely on supply chain agility and careful planning.

The strains imposed by the influx in Black Friday shopping serve to highlight the increased need for the digitisation of operations on the supply chain level. To keep up with rising demands, distributors and other suppliers must assess how technology can be used to optimise processes and help predict demand and supply.

Of course, delivery networks will also face a hitherto unprecedented strain. As holiday shopping begins in full force, DPD is expecting to deal with over two million parcels on Cyber Monday, a figure that exceeds last year’s number by over 60%.

A failure to invest in ecommerce channels and coordinate with robust, agile supply chains will no doubt leave retailers floundering over the course of Black Friday, the subsequent season of holiday shopping and beyond.

Expense Reduction Analysts offer tailored retail solutions and cost reduction expertise via invaluable insight from our team of industry professionals. Get in touch today to find out how we could support your business.