A recent report by the Australian Retailers Association (ARA) and Roy Morgan found that more than 6 million Australians are expected to participate in Black Friday Sales. Scheduled for 28 November to 1 December, the four-day weekend is expected to generate a record-breaking $6.8 billion in sales.
With that said, according to a new survey, 39 per cent of Australian small businesses will not be participating this year, a decline of 22 per cent from the previous year. These figures come from a survey published by Xero, which found that 40 per cent of small businesses take issue with the impact of severe discounting on profit.
According to Xero’s Angad Soin, adverse trading conditions, including the impact of cost-of-living pressures on discretionary spending, have led retailers to place greater faith in their relationships with customers.
"Black Friday forces a tough decision. Small business owners have to gamble the opportunity of increased sales against the real-world pressures of higher costs and tighter margins,” he told 9News.
"Black Friday isn't just a big business event anymore; it offers real opportunities for small businesses to connect with new customers and strengthen loyalty.
"To discount or not to discount must be a strategic decision, not reacting to short-term pressure, and instead building a healthy business all year round.”
The report found that around 10 per cent of businesses expect sales to decrease during the upcoming Black Friday period compared to last year.
The Australian Competition and Consumer Commission (ACCC) recently announced plans for another ‘sweep’ for misleading and deceptive sales advertising tactics during this year’s Black Friday retail period.
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