Black Friday is light at the end of the tunnel for retailers in crisis – News

Black Friday is light at the end of the tunnel for retailers in crisis – News
Black Friday is light at the end of the tunnel for retailers in crisis – News

Black Friday has the potential to stimulate commerce
Rovena Rosa/Agência Brasil – 25.11.2021

A sexta-feira Negrawhich this year takes place on November 25th, appears as a source of hope for large retailers in the midst of a crisis that devastates the sector. The truce is expected due to consumers’ interest in taking advantage of the date to get discounts and even buy gifts in advance for the end of the year.

Data from PMC (Monthly Trade Survey)revealed monthly by IBGE (Brazilian Institute of Geography and Statistics) show that the sector, after rising almost 4% in January, began to “move sideways” and presents an increase of 1.8% in the year to September.

A critical situation faced by the sector resulted in the judicial recovery of American stores and in Livraria Cultura bankruptcy decree. Also affected are the Marisa Stores and the department network Tok&Stok had bankruptcy filings requested by creditors. For other giants, the alternative was the closure of storesin an attempt to circumvent the crisis.

“For companies in trouble, Black Friday is a wonderful opportunity to sell products, clear stocks and put money in the cash register to buy better and more current items that will offer greater profitability”, says Roberto Kanter, professor of the MBA in management commercial of FGV (Faculdade Getulio Vargas).

Wilson Victorio Rodrigues, director of the Faculty of Commerce of São Paulo, recalls that Black Friday has already become the second best date for retail and could be a good chance for retailers whose financial health is compromised.

“Black Friday is an important opportunity for these companies to sell. There are even some strategies, such as warming up for Black Friday, so that consumers can get in the mood for the date”, says Victorio.

Real innovations and discounts

Analysts also recommend that companies develop strategic innovations to make better use of Black Friday and increase sales volume during the date. Salesman Ciro Bottini, a veteran of telesales in Brazil, says that companies, especially those with financial problems, should focus on creativity.

“Everyone waits for the lowest price, but customers are in need of something that is unique. I see very little of this, which represents little value generation for the brand and the product. Marketing needs to be thought about and even used the humor, which is always very good”, highlights Bottini.

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“It is essential that retailers adopt intelligent strategies, with investment in digital marketing, functional websites and a logistics operation for quick delivery of products”, adds Victorio.

Roberto Kanter also advocates that retailers adopt a different vision from that observed in recent years and offer real discounts to consumers. “The ideal is to select fewer products that offer unique advantages, with discounts of 30%, 40%, 50%. If this happens, there will be a Black Friday redemption”, he advises.

“The bad result of Black Friday last year was a consequence of the Brazilian retailer’s bad habit of doubling [o preço dos produtos] to give 50% discount. Apparently, everyone continues to do this, and the consumer is not a fool”, reinforces the FGV professor.

Find out which large companies are driving the wave of retail crises

The article is in Portuguese

Tags: Black Friday light tunnel retailers crisis News



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