It’s been a year fraught with difficulties and challenges almost from the outset, and now another huge test is looming for retailers. 

With a second lockdown now well underway, the peak Black Friday and Cyber Monday weekend is poised to become more of a digital event than ever before in the UK. 

A survey from PwC suggests that 88% of shoppers will do all of their Christmas shopping online this year, although spending on Black Friday itself is likely to fall 20% year on year.  

That contrasts with the view of McKinsey, which believes Black Friday will be “the biggest shopping day of the year” in 2020, with 56% of shoppers intending to make purchases on November 27. That compares with 39% on Cyber Monday and 38% in the last week before Christmas. 

With the prospect of increased online demand piling added pressure on to supply chains, retailers must be wary of balancing the short-term ambition to drive Black Friday sales with the longer-term requirement to enhance brand reputations. 

Even though the majority of retailers have succeeded in keeping a good handle on stock during the coronavirus pandemic to date, the temptation for some may be to offer consumers enticing promotions and rapid delivery in a bid to take advantage of soaring ecommerce demand.

According to IMRG, online sales grew at their quickest rate since June during the first week of November, soaring 61% as consumers bring their Christmas shopping forward and take advantage of early Black Friday discounts. Retailers rightly want a slice of that pie.  

“Now more than ever retailers must focus on what Amazon can’t do”

Much, however, has been made of the fulfilment challenges that a Golden Quarter dominated by online activity is likely to bring. For many businesses, a spike in orders, coupled with a next-day or two-day delivery pledge, is likely to push supply chains and logistics capabilities to the limit and ultimately prove untenable.

Particularly at this time of year, a failure to meet such bold delivery promises could erode consumers’ trust in a brand for life, not just for Christmas.

The key to navigating this crucial period will therefore be simple: don’t even try to compete with Amazon during this year’s online Black Friday and Christmas bonanza. 

It’s a mantra that has been discussed in boardrooms up and down the country for a number of years, but now more than ever retailers must focus on what Amazon can’t do.

They must place emphasis on their sector specialisms, their green credentials, the quality of online help and advice they can offer customers, and ensuring their returns policies are flexible and multichannel – assuming of course that stores are allowed to open in January.

A different tack

Allbirds, for instance, is actually raising prices on Black Friday. It will add £1 to the price of its entire range on November 27 as part of its ‘Break tradition, not the planet’ campaign. 

Allbirds will match every £1 raised by its customers and donate all proceeds to Fridays For Future, the international climate movement founded by Swedish activist Greta Thunberg. 

“Black Friday deals may satiate momentary desire, but their impact on the planet is a lot more long-lasting,” Allbirds says. “That’s why we wanted to do things a bit differently this year, flipping tradition and doubling down on our commitment to sustainability.”

Allbirds is just one of the brands that is acutely aware of the risks involved in taking on the likes of Amazon at their own game. Instead, it is accentuating one of its USPs as a method of cutting through the considerable Black Friday noise and ramping up revenues.

Amazon may not be too much of a threat to Allbirds in the fashion category, but the brand still wants to differentiate itself from the crowd and drive sales in a sensible and sustainable way. 

After a torrid 2020, consumers are likely to gravitate to retailers displaying such credentials, rather than simply opting for the retailer that can offer the quickest delivery. 

“Many consumers will actively want to support smaller, local and ethical retailers, and will seek them out ahead of Amazon during the Black Friday and Christmas period”

Many consumers will actively want to support smaller, local and ethical retailers, and will seek them out ahead of Amazon during the Black Friday and Christmas period. Consumers shopping early for gifts will happily wait a bit longer for delivery if it means helping out smaller companies that are more in tune with their principles.

Therein lies a big opportunity for retailers that cannot compete with Amazon on price or fulfilment. Highlighting what makes your business genuinely unique, while under-promising and over-delivering when it comes to delivery, will be crucial not just to maintaining customer satisfaction during the festive period, but customer loyalty heading into 2021.

Going toe-to-toe with Amazon will leave retailers on a hiding to nothing if they really want to achieve either of those two goals this Black Friday.