Stop ‘daft’ discounts says Superdry founder
SUPERDRY founder Julian Dunkerton has warned high street fashion shops to hold their nerve and refrain from heavy discounting before Christmas.
Dunkerton, who left the firm in March, described pre-Christmas discounting as ‘daft’ because it shreds profit margins at the time of year when shoppers are most willing to splash out.
Turning to the firm he left at short notice in March after 15 years, Dunkerton criticised the new board, saying the sales rise of just 3 per cent in the six months to the end of last month ‘speaks for itself’ after years of double-digit growth. He added: ‘Discounting before Christmas is a disaster. Think about what’s in the consumer’s mind: Do they want to buy discounted product for Christmas presents? No. You want to buy the best present you can.’
Last year, Superdry cut prices for Black Friday then began a huge sale on December 22. Dunkerton, who wants to return to the business, says this was a mistake.
FASHION retailers are so fed up with the damaging effects of Black Friday that many of the biggest high street names are refusing to take part in the annual discount bonanza later this month.
The Mail on Sunday can reveal that House of Fraser, Marks & Spencer and Selfridges will all trade as normal on November 23.
Even online fashion retailers are understood to be stepping back from the event, which one supplier said had become a ‘nightmare’ due to customers loading up on cheap purchases that they then return.
Black Friday, which traditionally falls on the Friday after Thanksgiving in the US, was introduced to the UK by Amazon in 2010.
It has been popular with shoppers, but not City investors. Richard Hyman, a veteran retail adviser, said: ‘Black Friday has probably been the most stupid retail import from the USA this country has ever seen. To launch a promotion when you are wanting, and needing, to promote your Christmas ranges is very confusing for customers.’
‘Retailers going cold turkey is a big positive – and will help to repair some profit margin damage.’
Fashion stores, unlike companies which sell electrical goods, dislike Black Friday. Discounting so early in the festive season means clothing chains are forced to cut prices on goods they might otherwise have sold at full price in the run-up to Christmas. By contrast, retailers that sell big ticket items such as TVs feel they are able to tempt shoppers to part with cash for expensive items at a time when they have more money in their wallets.
So while Amazon and Currys PC World, Argos and AO.com will take part in Black Friday this year, clothing retailers such as M&S and House of Fraser are scaling back.
Marks & Spencer boss Steve Rowe said: ‘We will not engage in discounting for Black Friday. We will be making sure any discounts are passed on to our customers in lower prices all year round.’
Next has not announced its plans, but sources insist no current season products will be on sale. Debenhams will offer Black Friday deals, but focused on cosmetics rather than clothes. Boots will also offer cosmetics deals and John Lewis will price to match rivals, but not actively take part.
One clothing supplier told The Mail on Sunday: ‘Online retailers all want to pull back on it because it has become a nightmare for them. Customers order 15 things on a discount then send 14 of them back. The delivery networks are in chaos so customers complain when it doesn’t turn up on time.
‘Then warehouses are clogged up with all the returns and customers complain when they don’t get the refunds straightaway. In the end it’s a lose-lose situation for retailers.’