Is Black Friday's time nearly up in the UK?
"What the heck was unleashed on us?" is the general mood of buyers, analyst claims
Questions have been raised over Black Friday's longevity in the UK amid fears it is becoming a negative experience for some suppliers and consumers.
Black Friday is a US retail sales event popularised by global giant Walmart, but it has begun to catch on in the UK in recent years. Footage of bargain-hungry Brits fighting in shops' aisles emerged last year.
Commerce consultancy Salmon predicts this year's "frenzy" will lead to the first £1bn online shopping day in the UK.
Channel firms Insight, Westcoast and VIP Computers got in on the action last year and have again this year, but some claim the sales bonanza's days could be numbered on this side of the pond.
Walmart-owned Asda recently announced it would not take part in the event this year after listening to customers' views.
VIP Computers' director Rich Marsden said this move is a signal the event could be on its way out.
"They don't want people fighting in their stores. There are a lot of things to fight for in this world but a Bush telly doesn't really do it," he told CRN. "Walmart hasn't pulled out of Black Friday [in its UK Asda stores] for the good of their health.
"It is not like they know something everyone else doesn't - the simple fact is that Black Friday for your numbers does not stack up. It stacks up from your revenue and your ASP [average selling price], but from a margin perspective, you're cutting 30 or 40 per cent off. And as that gets deeper, the pain gets more significant. I would think next year you will see a lot of change."
VIP is partaking in Black Friday this year - as it has done for the last two years - and it has been planning for the sales event since July. Marsden said although his firm is offering deals across all of its customer segments, his firm is far from alone.
"I walk up the High Street and every single shop - the card shop, the flower shop - they've all got Black Friday deals. Maybe it works for them, but in tech, where the margins are so slim, you're going to end up with people saying ‘I don't want to participate in it' next year and the year after."
He predicted retail heavyweights such as Amazon and Dixons will continue the tradition, but he predicted other major brands will give the sale a miss as they consider their profits.
"Everyone is doing Black Friday, Black tag deals, week-long deals, month-long deals and the challenge we face is ultimately you're taking sales from what is the busiest period - December," he added.
Analyst Context's founder Jeremy Davies agreed that the phenomenon could be on its way out.
"Everyone is predicting there is going to be a lot spent [today], but the general mood is one of wondering what the heck was unleashed on us when Asda first started this," he said. "We will have to see how it pans out but from my point of view, I can see it weakening next year. The experience has been negative."
Distie Westcoast is getting in on the action too - offering discounts to its retail and etail customers as well as its resellers. Its managing director Alex Tatham is cautiously optimistic about the future of Black Friday.
"We have got deals for them all. A lot of people want to get in on the act," he said. "I think each year you will have to let the dust settle to actually whether this is a good thing or a bad thing. So you'll have to wait a couple of weeks to assess the impact of Black Friday. There seem to be more offers in more places every year and therefore, if I am honest with you, in my opinion, that will be the trend."