Shoppers looking for a bargain this Black Friday might be in luck, and they might not have to worry about limiting their purchases to just one day.
Retail experts say retailers, especially clothing retailers, have excess inventory that they need to sell before the start of the new year.
While prices may not be at rock bottom, retailers are going to be aggressive and there is potential for good deals, said Lisa Hutcheson, of retail consultants JC Williams Group.
“I think it’s going to be heavily promotional, but I’m not sure we’re going to see huge, deep discounts,” Hutcheson said.
Hutcheson added that she doesn’t think the deals will be isolated in a single day.
“It’s going to be spread out. We see that this isn’t this isolated Black Friday. It’s that Black Friday creep that we saw that has now penetrated – it was an American event and it became a Canadian or global (event),” Hutcheson said.
Mathew Wilson of Best Buy Canada said the tech company has dubbed November “Black Friday Month” and the best deals are expected on Friday.
“We recommend buying early, shopping early, just to make sure you get the product you need, because obviously demand fluctuates and some of the hottest items may go faster than others” , Wilson said.
Wilson added that Best Buy doesn’t buy excess inventory, but makes sure it’s strong enough to last through Black Friday.
Liza Amlani, director and founder of Retail Strategy Group, said the biggest problem retailers are facing in the last quarter of 2022 is more excess inventory than they had anticipated.
“One of the reasons is that the brands overbought. They overbought and they didn’t plan, I would say, intelligently,” Amlani said.
“A lot of brands and retailers were looking at year-over-year sales, and 2020 and 2021 were anomalies, so the thing is, a lot of brands kept overbuying because they thought they would have the same demand. than during the pandemic … as they increased their digital spending,” Amlani said.
Retailers also have excess inventory because they brought in product earlier, due to supply chain challenges.
“They wanted to make sure they had the product on hand in case there was chaos and disruption, because the last thing any retailer wants is ‘out of stock’ during the busiest time of year. “, Amlani added.
Market leaders and brands must sell through the surplus they are sitting on by cutting clearance and promotions to bring in new inventory for 2023, Amlani said.
Another challenge is that consumers might not open their wallets as much in the new year.
“We don’t see consumers planning to spend in early 2023 because they’re going to be working on clearing that debt, rather than buying more,” Amlani said.
When it comes to Black Friday deals, consumers will see “really good” deals and deeper markdowns and promotions that will continue through Boxing Day, Amlani said.
“Eliminating inventory is the top priority for brands. We will continue to see markdowns and promotions.
If these brands don’t eliminate excess inventory, they age, Amlani said.
“The last thing a retailer wants to do is sit on excess or aged inventory because it limits their openness to purchase and their finances. If they take it off the floor, that’s even worse, because it’s not in front of the customer,” she said.
From there, a product would end up at an off-price retailer, like Winners, or, as a last resort, on clearance, where it wouldn’t make any markup for the brand.
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