News Brief – Stores Push Black Friday Into October
The article by Stephanie Clifford stood out to me because I never heard of the term Black Friday right before Halloween. Retailers have changed their marketing strategy adjusting to the economy’s situation. Consumers thinking has also changed and previous methods which were used to draw customers into the stores to purchase were not working. In the previous years, foot traffic remained high but revenues were not what were expected. Since people are not spending as much as they use to and are not willing to pay full price for items they will simply pass on the “sale.” Stores are trying to maximize their profits and get consumers to spend with them early as possible. Many retailers are now having sales before Thanksgiving which is a change from people waiting to do their shopping after Thanksgiving.
For retailers this means that competition this year has increased greatly since consumers have less to spend are not willing to pay full price. In the past, much of the revenue was earned specifically around December but now with the new strategy revenue will be spread out between 2-3 months. Retailers will have to think about different business factors such as inventory, hiring workers to accommodate the longer sale period, and their fellow competitors and their strategy. This leaves us to wonder what effect will they have on the smaller retail stores and the negative impact they can possibly have. Retailers will have to mark their items appropriately to get them to purchase because foot traffic will not necessarily imply sales. The economy and unemployment is affecting them and will continue to in the following years if the trend continues.
For consumers this means they will have to evaluate whether these items are in fact a bargain purchase for them. Technically they will have the upper hand since they are willing to pass an item if not appropriately priced. Also, consumers will have...