Black Friday under fire from Irish retailers

Shops are questioning whether the sales event is more trouble than it’s worth

Black Friday in Ireland is barely a year old but could already be on the way out, as Irish retailers start to question the merits of a concept which sees them dramatically cut prices - and margins - for a single weekend coming up to the busiest trading period of the year.

The difficulties this new sales phenomenon poses have been compounded for many retailers by a significant drop in consumer demand in recent weeks, as shoppers save their spending for the big “event”.

"We have had a lot of retailers contacting us saying things have been very quiet in recent weeks as consumers have copped on to Black Friday," David Fitzsimons, of Retail Excellence Ireland, said.

“It is not great from a retailer perspective but they have to do it because competitors are doing it. I think we might see retailers pulling out of it next year because they can’t afford it.”

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Black Friday has been imported from the US and traditionally starts on the day after Thanksgiving, when most Americans who do not work in retail are off work.

In the UK, retailers have started taking a more pragmatic approach to the event.

Many mainstream retailers have started stretching the pre-Christmas sales period over a week or longer to avoid huge queues and in some cases riot situations.

Asda - the retail giant which is credited with introducing Black Friday to the UK - has pulled out of the sales entirely, with its chief executive Andy Clarke saying its customers shouldn’t be “held hostage” to a day or two of sales.

“It is not good for retailers and I don’t think it is great from a consumer perspective either,” Mr Fitzsimons said.

“In the medium term one weekend of promotions does no one any good. It’s madness and it delivers a very poor customer experience. What works is year-round good value and a focus on customer service.

“We would be better off seeing a 10 per cent reduction in prices year-round rather than much bigger discounts pushed into a single weekend.”

Deep discounting

While Irish retailers may feel disquiet at having to play a part in the days of deep discounting, they have to put a brave public face on it.

Virtually all the big names in Irish retail have been trumpeting their sales, which will kick off towards the end of the week.

Arnotts, Harvey Norman, Marks & Spencer, Argos, Debenhams, Brown Thomas and hundreds of other retailers will be hoping to lure customers through their doors over the course of the next four days with promises of discounts of anywhere between 20 and more than 50 per cent.

As much as €120 million could be spent by Irish consumers over the course of the event - significantly up on the €40 million that was spent over the same weekend last year.

“We had no choice but to get involved this year. We’re just following a lead set by the UK and all the other retailers are doing likewise,” one retail executive told The Irish Times.

Ecco on Grafton Street in Dublin is opening at 6am on Friday morning and will be offering the greatest level of discounts to early bird shoppers.

Between 6am and 7am, the store will offer discounts of 40 per cent on all stock, dropping to 30 per cent for the next hour and then to 25 per cent between 8am and 9am, before falling again to 20 per cent for the rest of the day.

"We're not sure what the turn-out will be but we'll be ready," said store manager Marius Stan.

“I think in the past retailers were not prepared for Black Friday and that led to problems but we will be ready. In today’s world everyone is looking for value and we are meeting that demand.

However, Mr Stan said of the event: “Do we want to have people queuing round the block outside shops at 6am at the end of November? Is that what we want as retailers or as a society?”

Electronics

To profit most from this year’s Black Friday, consumers would be best off eschewing the cheap-as-chips stock and focusing on the bigger-ticket items, which is why electronics retailers are anticipating a big rush over the weekend.

When it comes to clothes, the things to look out for are shoes, coats and handbags.

They cost a lot so the discounts will be worth more. The items will also last longer and be less likely to fall victim to the whims of fashion.

People who lose the run of themselves in the sales can take comfort from the fact that they won’t lose their rights as a shopper.

Inevitably, some retailers will post signs such as “No money refunded”, “Only credit notes given” or “Sale goods not exchanged” on their stock this week. Such signs are meaningless and possibly illegal.

It doesn’t matter if someone pays full price or gets a discount of 90 per cent on a product, they have the right to expect it to be of an acceptable standard, fit for its intended purpose and as advertised.

If it’s not, they are entitled to a repair, a replacement or a refund - despite what the signs might say.

The rules only apply if a consumer is returning something they have bought in the sales because it is in some way flawed.

They do not apply to returns made because shoppers have changed their minds.

Retailers are under no obligation to take back stock which is returned in such circumstances.

Conor Pope

Conor Pope

Conor Pope is Consumer Affairs Correspondent, Pricewatch Editor and cohost of the In the News podcast