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

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

It is the judicial recovery of one, the bankruptcy filing of another, there is the one that received an eviction order, and one more, which is restructuring its business model. The Brazilian consumer has rarely witnessed such a serious crisis affecting so many companies at the same time. Before 2020, part of the retail sector was already in financial trouble, but the Covid-19 pandemic ended the growth plans of several companies, while creating false expectations in others, which invested much more than they could.

A Americanas crisis, which became public on January 11, seems to be the largest in terms of values. Initially, the company announced that it had found accounting inconsistencies worth R$20 billion linked to supplier accounts, but it was soon discovered that the amount of debt was twice that. After disagreements with some creditors, on April 11 the retailer said it had agreed with some banks to suspend ongoing legal disputes

Renato S. Cerqueira – Futura Press / Estadão Conteúdo – 05/09/2023

Fashion retail giant, Renner announced, at the beginning of the month, the decision to contain expenses by reducing its operations, with the closure of 20 stores of its brands. In total, 13 Camicado stores, three Youcom stores and four Renner stores were closed.

Kevin David – A7 Press / Estadão Conteúdo – 05/09/2023

Lojas Marisa is in the process of reviewing its debts and its business model. In the photo, the unit located on Rua Direita, in the center of São Paulo, with its doors closed, this Monday (15). On the 11th, The company’s creditors filed for bankruptcy due to debts totaling R$882,700

Cris Faga / Estadão Conteúdo – 05/15/2023

The crisis came to light in February, with an eviction action against Tok&Stok. Then, in April, the technology consultancy Domus Aurea sent a bankruptcy petition to the court against the retailer, because it had not paid R$3.8 million, relating to a project that was suspended. Tok&Stok’s debt is estimated at R$600 million

Taba Benedicto / Estadão Conteúdo – 04/27/2023

Unable to honor the debts as stipulated in its judicial recovery plan, Livraria Cultura, was declared bankrupt by the Court at the beginning of Februarybut obtained an injunction that reversed the decision

Edu Garcia/R7 – 02/14/2023

On April 13, the Rio de Janeiro Court accepted the request for judicial recovery from Grupo Petrópolis, owner of the beer brands Itaipava, Crystal and Petra, who had made this request on March 27. That month, debts were estimated at R$4.2 billion

Davi Corrêa – Futura Press / Estadão Conteúdo – 05 05 2023

A chain of sporting goods stores Centauro closed ten units in January, with the aim of reducing expenses and increasing profits. The decision was announced as a response to the current economic context

The telecommunications operator Oi entered into judicial recovery in 2016, with gross debt of R$64 million, which was reduced to R$36 million the following year. Over time, there were changes in the company’s proposals which, in December 2022, it managed to exit judicial recovery

On April 7, after seeing its shares fall nearly 50% on the New York Stock Exchange, the Tupperware announced measures to improve the business’s capital structure and liquidity. Even so, their roles continued to be devalued. With ‘substantial doubts’, the company assumed that it may no longer be able to continue its operations. Founded in 1946, Tupperware Brands Corporation is a pioneer in food storage and is present in nearly 70 countries

Scott Olson/Getty Images North America/Getty Images via AFP – 10.04.2023

At the end of February, the The court declared the bankruptcy of the Pan Produtos Alimentícios chocolate factorywhich has been in judicial recovery since 2021. The company, which became famous for its cigarette-shaped chocolate, had already recognized its inability to honor its debts of R$260 million and filed for self-bankruptcy

FABIO GIANNELLI/PHOTOPRESS/ESTADÃO CONTÚDO-02/28/2023

The article is in Portuguese

Tags: Black Friday light tunnel retailers crisis News

Real innovations and discounts

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