Black Friday discounts on small side
Delays at the border, limited stock and already busy retailers could add up to equal muted Black Friday sales for Kiwi shoppers, retail and distribution experts warn.
First Retail Group managing director Chriswilkinson said that while there were still supply concerns for many retailers, the situation was improving.
‘‘But for electronics, the big seller for Black Friday and Cyber Monday, there could be shortages.’’
National Road Carriers Association chief executive David Aitken said transport was being pushed to breaking point.
‘‘Worldwide supply chains are in disarray. The current pandemic affects everything, and the transport and logistics sector is in the thick of it. Bigger and better resourced countries have higher levels of critical infrastructure to cope with this, but it does not take much to bring New Zealand Inc to its knees.’’
Shipping companies and ports across the country were already struggling to keep up with consumer demand and the worst was yet to come, Aitken said.
But while getting products into the country was still challenging, Wilkinson believed the biggest dampener for Black Friday could be the fact that it was not needed this year by so many retailers. There was little incentive for local retailers to offer big discounts after sustained sales growth over the past three months, he said.
‘‘There will be lesser discounts than in previous years. This is really reflective [of the fact] that there has been strong demand throughout the year that hasn’t really abated.’’
Since the end of the lockdown, retail figures have consistently outperformed expectations. Card spending on long-lasting goods (durables) in October was up $244 million, or 17 per cent, from the same time last year.
Black Friday, a shopping tradition imported from the United States, was traditionally the day retailers began making profits for the year.
Over the past few years, New Zealand retailers have begun to offer Black Friday discounts in an attempt to compete with online shopping.
Butwilkinson said that if there were discounts this year, it would be retailers looking to grab market sharemore than anything else.
‘‘Most retailers are doing really well and there hasn’t been the situation of duress that we’ve seen in previous years.’’
Two or three years ago a handful of retailers began adopting Black Friday and offering significant discounts in partnership with major suppliers, he said.
‘‘Last year, we saw the majority of retailers jump on board because they felt they were missing out and needed to be part of it. That created similar euphoria, but front-runner retailers that were very audacious in 2018 were less so last year,’’ he said.
‘‘This year, I think, businesses will be getting involved with it, but there won’t be the deep discounts because it’s just not necessary.’’
New Zealand Post has been ramping up capacity ahead of the Christmas season, which began with Singles’ Day and included Black Friday.
But an NZ Post spokeswoman warned that international shipping was still suffering from the Covid-19 pandemic.
‘‘If New Zealanders are looking to buy Christmas presents from overseas in Black Friday and Cyber Monday sales, they should take note of what the retailers’ websites say about delivery time frames into New Zealand.’’
‘‘Most retailers are doing really well.’’ Chris Wilkinson First Retail Group