Deliveries Will Test Retailers This Black Friday

Commenting ahead of this year’s Black Friday, Sophie Michael, BDO’s Head of Retail said:

“Consumer spending has been surprisingly resilient over several months now and it’s entirely possible this will continue in the lead-up to Christmas, particularly if consumers anticipate rising costs in the New Year.

“We could see a strong sales surge over the Black Friday weekend but shoppers may find that the deals on offer aren’t quite as generous as they’ve been used to in the past. A combination of supply chain disruptions, product shortages and higher costs will mean retailers won’t feel compelled to race to the bottom on price as they have done in previous years. This year will be all about protecting profit margin and ensuring that they deliver on their customer promises.

“Some retailers have brought forward their discounting to avoid delivery bottlenecks, but stock handling and logistics operations are going to be tested to the limit from now until Christmas. 

“While shoppers are conscious of the supply chain challenges facing retailers, this doesn’t mean that they’re going to be forgiving if their orders aren’t delivered on time. This is a significant challenge which will need careful management to avoid suffering longer term reputational impacts if retailers fail to get it right.”

Source : BDO

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