It’s become an annual rite of passage – the shopping frenzy known as Black Friday that immediately follows the Thanksgiving holiday in the United States. While the madness of packed stores and midnight shopping has calmed a bit from its peak, this is still a massively important day for many retailers. In 2020, shoppers on Black Friday spent more than $9 billion in online purchases alone.
The home furnishings and accessories industry, like any other retail sector, aims to take advantage of this nationwide spending spree. Black Friday furniture sales are promoted throughout the month of November, with many of the deals lasting much longer than just a single day. Furniture stores offering Black Friday deals often extend those promotions for the entire Thanksgiving weekend, if not longer.
A New Challenge
Retailers have come to know what to expect each year as Black Friday approaches. There is sure to be a massive wave of shoppers, and those shoppers are going to be looking for deals. With that said, 2021 presents a unique challenge due to supply chain issues that have badly stressed inventories. Will prospective furniture buyers be willing to make purchases knowing they may be looking at a long lead time to receive the item?
Since the beginning of the pandemic, demand for furniture has been high, as people spend more time at home and decide to invest in nicer furnishings. There is no reason for this to change for Black Friday in 2021, and that high demand will only further stress the already limited inventory available at many retailers.
Cutting Back on the Discounts
Some basic economics points to the likelihood of retailers doing strong business during the 2021 holiday season – including Black Friday – without having to offer huge savings. If furniture retailers are looking at strong demand and limited inventory, there will be little reason to offer deep discounts. The traditional aspect of Black Friday will likely provide for some discounting to be in place, but massively slashing prices doesn’t seem necessary. In the end, retailers may be able to make the same revenue as usual by selling slightly fewer items at somewhat higher prices.
Continuing Strong Relationships
As it relates to the home furnishings and accessories industry, and specifically credit departments, maintaining strong relationships with key retailers will be as important as ever. Those retailers may need to stretch their existing credit limits to serve the significant demand, as long as inventory is available. Working closely with retail accounts to manage credit levels in a manner that serves both parties will be particularly important during this season.
The Many Benefits of Membership
For credit professionals working in the home furnishings and accessories manufacturing industry, joining FMCA is an excellent way to tap into the knowledge and experience of your peers. Members have access to numerous community events (whether virtual or in-person), networking opportunities, and so much more. In addition, some of our credit solutions include collections, credit reporting, and education. To learn more about what we are all about, simply contact us today. We are excited to meet you and hope that this holiday season treats you well.
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