BrainTrust Query: Black Friday...store traffic, but at what cost?

By Don Delzell, Partner, Retail Advantage

Although a retail consultant, I've held myself above the fray and never actually participated in the Black Friday phenomenon. This year, lured by outrageous discounts on large screen plasma TVs I don't need, I found myself, along with my sleep deprived significant other, in line at a Best Buy at 4 am -- along with about 2,000 of our closest friends, four or five police cars, people selling donuts and increasingly bad attitudes. By 4:30, a young man with insufficient information had passed out all the available "tickets" for the advertised Black Friday specials.

All across America, consumers experienced the same thing. Incredible deals everywhere, and very little product to support them. Is this really enhancing the retail brand? CMOs around the country have trumpeted the return of "service to the consumer." After experiencing the operational nightmare of Black Friday, I question if this retail event has been thought through to the extent it should be. Fortunately for all, it seemed no one had sufficient supplies of advertised super-deals, so everyone will be lumped together into the same box.

There is no question that it is impossible for retailers to have sufficient inventory to meet demand on loss leaders. In fact, it may even be argued that they don't want to. The question becomes how to manage the event for the consumer so that the benefit of the loss leader (driving traffic) isn't outweighed by the negatives of the experience (disappointment, unpleasant shopping conditions).

My significant other, who is neither a power shopper nor a retail consultant, wondered if a lottery would not be a better idea. Retailers should be forthcoming... that there are a limited number of each item... and pass out a limited number of lottery tickets for each. Allow customers to pick up to three lottery items, and then keep the loss leaders off the floor. Avoid the crush, the frenetic attacks on merchandise presentations, and use the loudspeakers to conduct the lotteries.

Discussion Questions: Are Black Friday limited-quantity, super-deal tactics ruining the event for the retail community? Are there more responsible and yet equally effective tactics for super-deals?

The lottery is only one of many ideas, but one thing's for certain... Black Friday is out of control, and absolutely demands that retail operators take responsibility for managing the event, rather than being managed by it. And that was my experience. The event seems to be managing the retailer.

Customers disappointed, fights in the aisles, displays torn apart, employees feeling physically threatened... instead of a party, it's becoming a nightmare. The entire retail community should take responsibility for these situations. We created Black Friday. It is now our responsibility to manage it.