Independent retailers hit hardest by Black Friday discounts, study shows

Independent retailers across the UK have been hit hard by Black friday discounts, according to data from retail management platform Vend.

While in-store spending for independent fashion retailers over the Black Friday period was 55 percent higher than on an average week, the discounting rate increased by 480 percent.

Vend’s data also found that while Black Friday provides a significant spike for retail, it is counterbalanced by the competing pressure to offer discounts, with health and beauty retailers increasing their discounts by 566 percent and fashion and apparel stores increasing theirs by 480 percent.

Commenting on the results in a statement, Higor Torchia, UK country manager for Vend, said: “Heavy discounting can be really tough for independent retailers with smaller margins, especially as we head into the most important trading period of the year. And these retailers have so much more to offer with their unique, cherishable products, compared to some of the bigger stores that can push prices low.

“But we’ve also seen a 62 percent increase in discounting overall compared to the rest of October and November. So many smaller retailers are still dropping prices to try and capture footfall over the Black Friday weekend.

“Though something our data shows very clearly is that big discounts don’t necessarily equal big sales. Which means that other than a marketing exercise, it really might not be that beneficial for smaller stores to be trying to compete on price.”

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