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| Asda to shun Black Friday sales | Asda to shun Black Friday sales |
| (35 minutes later) | |
| Asda has said it will not take part in this year's shopping discount day known as Black Friday. | Asda has said it will not take part in this year's shopping discount day known as Black Friday. |
| The supermarket says that, after two successful years, "shopper fatigue" has set in "around flash sales on big-ticket, non-essential items at Christmas". | |
| Black Friday, a tradition which started in the US, is a day on which some retailers offer large discounts. | Black Friday, a tradition which started in the US, is a day on which some retailers offer large discounts. |
| Last year, police were called in to supermarkets as scuffles broke out. | Last year, police were called in to supermarkets as scuffles broke out. |
| Fights took place among shoppers vying to get the best deal. | |
| Asda's owner, Walmart, is a big player in the Black Friday sales in the US and it helped to introduce the event to the UK in 2013. | |
| "The decision to step away from Black Friday is not about the event itself," said Asda's chief executive Andy Clarke. | "The decision to step away from Black Friday is not about the event itself," said Asda's chief executive Andy Clarke. |
| "Over the last two years we've developed an organised, well-executed plan, but this year customers have told us loud and clear that they don't want to be held hostage to a day or two of sales." | "Over the last two years we've developed an organised, well-executed plan, but this year customers have told us loud and clear that they don't want to be held hostage to a day or two of sales." |
| It says that instead of investing in one-off sales, it will invest £26m in savings across the seasonal shopping period. | It says that instead of investing in one-off sales, it will invest £26m in savings across the seasonal shopping period. |
| Analysis: Emma Simpson, BBC business reporter | |
| So Asda has dramatically changed tack. This US-owned supermarket, along with Amazon, led the way in introducing this American phenomenon to UK shoppers. Other retailers then jumped on the Black Friday bandwagon, offering huge discounts and promotions. | |
| So big was its effect last year, the event completely distorted Christmas spending, pulling forward sales, right at the most crucial time of the year when retailers should be selling their goods at full price. And who could forget the scenes of chaos in some stores. | |
| Three years on, Asda is effectively trying to put the genie back in the bottle. Instead of investing £26m in a Black Friday frenzy, it's now spreading that money in a series of savings and promotions across the Christmas season. Asda cites customer fatigue, but the move is not without commercial risk. | |
| There's a finite amount of Christmas money that shoppers have to spend and if they splurge out on big ticket items and deals with other retailers at the end of this month, then Asda could miss out on its share of that spend. | |
| The online retail industry body, the IMRG, surveyed dozens of retailers in the aftermath of last year's Christmas trading and found that although those offering discounts saw an average sales uplift of 180%, even those that didn't take part saw sales increase by nearly a quarter. Asda will be hoping they see some of that uplift. | |
| So what effect will Asda's move have on the rest of the industry? Some retailers will be breathing a sigh of relief after the havoc this entirely manufactured event has brought - not just to margins but on the logistics side as well. | |
| But all the signs are that this year, Black Friday is still going to be big, possibly record breaking, with the IMRG predicting that online spending could break through the billion pound mark for the first time. | |
| 'Bigger than ever' | 'Bigger than ever' |
| Retailer John Lewis has previously warned that UK firms would have to reconsider the heavy discounting of Black Friday, even though last year it brought the company its biggest trading week on record. | Retailer John Lewis has previously warned that UK firms would have to reconsider the heavy discounting of Black Friday, even though last year it brought the company its biggest trading week on record. |
| Earlier this year, managing director Andy Street said it was "more challenging profitability-wise" and questioned whether it was "right to concentrate trade so much in that one period". | Earlier this year, managing director Andy Street said it was "more challenging profitability-wise" and questioned whether it was "right to concentrate trade so much in that one period". |
| "My personal hope is that this is the high water mark for Black Friday. I don't think we can put the genie back in the bottle but do we need to stoke that fire anymore? I personally hope not," he told the BBC at the time. | "My personal hope is that this is the high water mark for Black Friday. I don't think we can put the genie back in the bottle but do we need to stoke that fire anymore? I personally hope not," he told the BBC at the time. |
| But John Lewis recently confirmed it would still take part this year. | But John Lewis recently confirmed it would still take part this year. |
| "John Lewis has no choice. We are part of this whether we want to be or not," said commercial director Paula Nickolds. | "John Lewis has no choice. We are part of this whether we want to be or not," said commercial director Paula Nickolds. |
| "We are absolutely committed to our Never Knowingly Undersold pledge and this means we are part of this event. | "We are absolutely committed to our Never Knowingly Undersold pledge and this means we are part of this event. |
| "We are anticipating that Black Friday will be bigger than ever this year." | "We are anticipating that Black Friday will be bigger than ever this year." |
| 'Brave move' | |
| Retail analyst Nick Bubb said Asda's decision did not mean the end of the discount day. | |
| "Despite the general recognition that too much discounting ruins Christmas trading prospects, it's not the end of Black Friday, because online players, such as Amazon, are fully committed to it, as well as stores like Currys and PC World. | |
| "But Asda were clearly sensitive to the embarrassing scenes last year of people fighting over cheap TV sets in their supermarkets and wanted to avoid any risk of reputational damage," he said. | "But Asda were clearly sensitive to the embarrassing scenes last year of people fighting over cheap TV sets in their supermarkets and wanted to avoid any risk of reputational damage," he said. |
| Greg Bromley, analyst at the retail research firm Conlumino, said the move was "risky" but could mean that Asda wins the retail battle over Christmas if the move allowed it to sell cheaper food, while other firms fight over electrical sales. | |
| "It's quite a brave move. They're probably hoping that other retailers will follow their move," he said. | |
| He added that there had been evidence to suggest that interest has been waning in the US as well. | |
| 'Disappointing month' | |
| Separately, the British Retail Consortium (BRC) attributed "disappointing" retail sales in October to customers delaying purchases in anticipation of Black Friday, which this year is due to take place on 27 November. | Separately, the British Retail Consortium (BRC) attributed "disappointing" retail sales in October to customers delaying purchases in anticipation of Black Friday, which this year is due to take place on 27 November. |
| It said the total value of retail sales between 4 October and 31 October was 0.9% higher than a year earlier, down from a 3.9% increase in September. | It said the total value of retail sales between 4 October and 31 October was 0.9% higher than a year earlier, down from a 3.9% increase in September. |
| "October was a somewhat disappointing month overall for retailers," said Helen Dickinson, chief executive of the BRC. | "October was a somewhat disappointing month overall for retailers," said Helen Dickinson, chief executive of the BRC. |
| "A number of categories which we'd typically expect to be popular on Black Friday saw a slowdown in October, suggesting that some shoppers may be holding out in the hope of some great deals at the end of November." | "A number of categories which we'd typically expect to be popular on Black Friday saw a slowdown in October, suggesting that some shoppers may be holding out in the hope of some great deals at the end of November." |