November 30, 2022

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This is why this year it is a buyer's market on Black Friday

This is why this year it is a buyer’s market on Black Friday

Next week is the world’s biggest deal day, also known as Black Friday.

– The special thing this year is that stocks in stores are very high, and you want to sell to make room for new models coming in the next quarter, says Remy Bilsback, interest rate and currency analyst at Sparebanken Vest.

You asked too much

The analyst says there are several reasons why very good buying could be done during this year’s Black Friday and in the run-up to Christmas.

– During the pandemic, it was hard to know if you could get all the goods you wanted, and so stores ordered more and more often.

Analyst: Remy Bilsback at Sparebanken Vest says that large warehouses will open deals for consumers. Image: TV 2

The result can be pleasing to customers.

– This led to overcrowding in warehouses. Another challenge the stores had was that they were asking to move goods, but that also improved dramatically, says the analyst.

These are the terms of the deal:

This is particularly the case in consumer electronics, white goods, brown goods, the sports industry, construction goods and household goods. It will now be possible to bargain, Belsack believes.

– You can really make a good purchase all over the country, but I think you can find unusual offers on items such as refrigerators, televisions, vacuum cleaners and electronics, the analyst says.

Bargains: A few bargains are possible this year.  Photo: Anna Walderhaug/TV2

Bargains: A few bargains are possible this year. Photo: Anna Walderhaug/TV2

Battle for customers

With the entire industry facing the same challenges, he believes companies will go a long way in the coming week and in the run-up to Christmas.

He points out that what reinforces the situation is that people’s purchasing power is somewhat reduced due to higher electricity bills and the higher cost of mortgages.

The competition for customers will be fierce. Remy Bilsac thinks margins are being pushed down.

New one to examine A YouGov survey for Danske Bank shows Norwegians plan to spend half a billion kroner less on Black Friday than last year. So the total amount ends up being around NOK three billion.

– The industry itself also says it expects people to buy less. This means that those who had money to spare when paying the bills now have good chances, says Remy Belsac.

December is the most important month for the trading industry. Therefore, Black Friday and Black Week are especially important for the annual result.

According to the Reuters news agency, Black Friday got its name because business operators hope sales will go so well that accounting numbers can be written in black, not red.

The red numbers mean a deficit and the black numbers the opposite.

Black: Black Friday, which has become Black Week, will produce black characters for stores.  Photo: Anna Walderhaug/TV2

Black: Black Friday, which has become Black Week, will produce black characters for stores. Photo: Anna Walderhaug/TV2

to get to know

Many companies that bet heavily on Black Friday say they know themselves in analyst analysis.

– We sure do. Anders Nielsen, CEO of Power Norway, says that no one can predict everything that has befallen us this year.

He says the big chains have planned for a year that was just below peak results during the pandemic and that means many have to dump inventories before news of the product arrives.

– This results in historically good offers and a tough customer battle this year, says Anders Nielsen, CEO of Power Norge.

The optimist: Power Norge CEO Anders Nielsen expects a tough battle for customers before Christmas.  Photo: Tarje Krug.

The optimist: Power Norge CEO Anders Nielsen expects a tough battle for customers before Christmas. Photo: Tarje Krug.

This fall, he says, they saw a change in customer behavior. While customers previously spread their Christmas purchases evenly over the autumn months, the chain now feels people are waiting for the good deals.

“My expectation is that a lot of the fall sales will be pushed into the last weeks of the year, and I think it will be a busy retail boom this year,” says Anders Nielsen.

keen consumers

Elkjøp also identifies itself in analyst analysis, among other things when it comes to stocks. The company also feels that consumers have generally been more cautious in the past six months.

– We continue to see a positive trend now in the initial phase of this sales period, and we are excited to see how the shopping pattern develops and continues beyond November and into Christmas, says Madeleine Schoen-Berghley, Communications Director at Elkjøp Norge.

Ready for sale: Elkjøp Norge Communications Director Madeleine Schoen-Bergley sees a positive trend at the start of the sales period.  Photo: Ketil Martinsen.

Ready for sale: Elkjøp Norge Communications Director Madeleine Schoen-Bergley sees a positive trend at the start of the sales period. Photo: Ketil Martinsen.

She says the company, which has plenty of goods in stock, is confident it has the products customers need in their daily lives.

– Madeline Schoen-Berghley says it’s a buyer’s market during Black Week and Black Friday, we can definitely get behind.

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