As noted in the conclusions of the research “the increased traffic of Black Friday leaves an aftertaste of satisfaction to the traders but also open challenges for the next period of time”
More businesses participated in this year’s “Black Friday” sales with most stating that they were satisfied with their sales, while it is notable that the physical store is being strengthened, as it seems that consumers are showing a strong tendency to reconnect with physical markets after the pandemic.
These are some of the research findings of the Institute of Commerce and Services (IN.EM.Y.) of ESEE on the topic: Estimates of the performance of small retail businesses from the practice of “Black Friday 2022”.
As noted in the conclusions of the research “the increased traffic of Black Friday leaves an aftertaste of satisfaction to the traders but also open challenges for the next period of time”. INEMY-ESEE, for the seventh year, investigated the participation of commercial businesses in “Black Friday” and evaluated its main characteristics, conducting a survey on a random nationwide sample of 254 businesses in the branches that carry out discounts.
Estimates of small retail business performance from Black Friday 2022 practice
As follows:
– In this year’s “Black Friday” sales, most businesses (61%) participated, a percentage that is slightly stronger than last year, when 56% of businesses participated.
– The intention of retail businesses to increase their participation in the practice of “Black Friday” is essentially dictated by the policy of the large retail chains, which have inevitably imposed this action as an institution.
– Half (49%) of businesses held sales throughout the week, effectively turning ‘Black Friday’ into ‘Black Week’
– Almost 2 in 3 businesses (62%) adopted discounts of up to 30%, while for 1 in 3 businesses (34%) the percentage of discounts ranged between 21% and 30%.
– In general, retail businesses are relatively satisfied with traffic, as almost 6 out of 10 registered a moderate/high degree of satisfaction.
– A similar picture is recorded in the level of business satisfaction with regard to turnover, since 6 out of ten businesses declared moderately/very satisfied. This element is an indication that there was no substantial discrepancy between store traffic and the realization of purchases.
– Almost 2 out of 3 companies proceeded with generalized discounts, i.e. on all goods, in contrast to several chains and online stores which adopted selective discounts, in specific categories/range of products.
– One in three businesses consider that their turnover in autumn 2022 was at the same levels compared to 2021. However, a significant percentage recorded a deterioration in sales.
– Despite the fact that commercial businesses are not energy-intensive, there is a significant deterioration in the negative effects. In particular, 8 out of 10 businesses stated that they were very/very affected by energy price increases, while in a corresponding measurement of summer sales, just three months ago, 7 out of 10 were affected to the same high degree.
– More specifically, almost half of the companies record increases in operating costs of up to 20%, a burden that is considered lower compared to other industries. Of course, such a burden, amid such intense uncertainty and liquidity, can only be seen as questioning the viability of businesses, despite government support.
– Supplier costs were kept at relatively more moderate levels in relation to operational costs, as many entrepreneurs took care to negotiate prices in time, before the peak of the energy crisis.
– Despite the energy crisis and the subsequent deterioration of expectations, a strengthening of the physical store is recorded, as consumers show a strong tendency to reconnect with physical markets after the pandemic
– Most businesses did not participate in “Cyber Monday” due to the relatively low level of business digitization. This finding should be taken seriously for the empowerment of digital transformation, especially of micro businesses, which are essentially excluded from relevant European funding programs.
As the predominant promotional action, the businesses chose the advertisement in the shop window and followed the messages on the social media of the business.
RES-EMP
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