But the discounting frenzy, which some economists say cannot last forever, comes as retailers’ profit margins shrink as they face higher operating costs for energy, fuel , labor, raw materials and much more. Meanwhile, shoppers are buying less, selling down, turning to ultra-cheap Chinese retailers like Temu and Shein and taking advantage of bargains.

Businesses have had to be more deliberate and tactical in their markdown strategy to get Australians to part with their cash, according to Carla Penn-Kahn, CEO of e-commerce insights platform Profit Peak.

“Retailers are increasingly focusing on product-specific discounts rather than applying blanket discounts across their entire range,” she said.

“One of the key emerging strategies is to use different discount levels based on factors such as product sales rates (amount of stock sold in a specific period), stock availability and popularity.

“This is a smart move because it avoids deep discounts on best-selling products, which could lead to (shortages) and leave retailers with less attractive inventory.”

In affluent areas of the city, large retailers are keen to promote that they offer good value and stick to traditional markdown methods. Department store David Jones offers a suite of offerings that differ across categories and brands, varying in depth and timing; JB Hi-Fi launched its “blitz” on November 21. Members of its Perks program receive early access to online offers. “Black Friday is now the flagship retail event,” said Cameron Trainor, managing director of JB Hi-Fi.

Promotions start weeks in advance, Penn-Kahn says, with the goal of capturing consumers’ dollars as early as possible before sales fatigue sets in. Amazon Australia launched Black Friday sales on November 19. Data analyzed by Shippit shows the biggest day of sales. during the Black Friday period, it’s actually six days before Black Friday itself (which falls on November 29 this year).

“By being more discerning about discounts, retailers can protect their margins and ensure they don’t end up with inventory that’s harder to sell,” Penn-Kahn said.

“No Bullshit”: One Size Doesn’t Fit All

Retailers move at their own pace. While some price reductions are staggering, LNDR’s site-wide approach counters discounts with conditions and caveats.

“A lot of brands that we see especially in Australia (are) doing ‘final sales’, or five different sales until November… and kind of creating this crazy feeling of frenzied urgency all the time,” Turner said.

The duo is keen to reduce noise. “We’re just trying to get around that kind of trickery,” Turner said. “There is no final sale,” Scott-Hunter said. “We really wanted to stay true to our core value, which is no bullshit. We want them to buy slowly.

To preserve their margins and meet consumer expectations, some retailers are doing things differently. Julie Mathers, founder of baby clothing brand Snuggle Hunny, started planning for Black Friday a year ago after looking at some excess inventory.

Not participating is really not an option. “Customers are delighted with it,” she says. “We are asked several times a day: “Are you doing Black Friday?” “.

“We have created a small range especially for this. This exclusive collection is also made from excess fabric that would otherwise go to landfills.

Perfectly good products with minor defects that would typically have been thrown away, such as slightly blurred or over-scaled prints, will be sold exclusively during Black Friday at a discounted price under the name “Snuggle Specials.” From November 26 through Cyber ​​Monday, December 2, Snuggle Hunny will be hosting a sitewide sale of up to 70% off.

Mathers sees it as a triple win: Factories get paid, customers get good deals, and fewer items end up in landfills.

The numbers are certainly adding up, if recent history is anything to go by. In September, to celebrate the company’s ninth anniversary, Mathers slashed prices by 40 percent across its entire site for one hour.

“In those 59 minutes, our sales were about 55 times what they would be in a given day. We made over half a million dollars,” she said. “People in Perth were getting up at 4 a.m. for this.”

The mother of two expects sales to increase tenfold during the Black Friday period. “It shows the power of community. When you have a good product, a good offering, I think if you have a good strategy, that’s what you can do – in this economy.

In Byron Bay, where LNDR is based, Turner and Scott-Hunter expect usual sales to increase fourfold, but they suspect the actual figure will be higher.

“Of course, we don’t like to sell our products at a discount because we have a huge investment in them and we want people to see the value in buying them at full price,” Turner said. “But at the same time, the idea of ​​attracting so many new customers to our products is worth it.

“Our Black Friday campaign this year is basically that we hate Black Friday. Or we love to hate it.

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