Tag Archives: consumption

Is Black Friday Still Important for Retailers?

Millions of consumers will be after a Black Friday bargain today. But, as a single day, is it still as important for retailers?

black friday sign

It’s that time of year again. The Thanksgiving turkey is digested, attention turns to Christmas, and Black Friday has arrived. Traditionally an American shopping day, Black Friday has expanded to hundreds of countries around the world.

An estimated £4 billion (nearly $5 billion) will be spent over the next 4 days between Black Friday and Cyber Monday. Of this, around half will be spent today, and an estimated £1.27 billion will be spent online.

However, as consumers change their shopping habits at this time of year, retailers are doing likewise. There are a couple of reasons for this, which we will have a look at now.

In Store vs. Online

The abiding image of Black Friday for most people is massive crowds, stampedes, fights over bargains (and the occasional punch up). The potential deals that stores offer are enough to turn the shoppers against one another.

And for many, this is enough to put them off leaving their house at all. In fact, the number of people heading out to the shops in the US on Black Friday has dropped to below 25 per cent, driven by more Millennials choosing to shop at home.

However, that doesn’t mean that less money is spent. In the USA, experts predict that total holiday spending (the months of November and December) will hit $632 billion. And, for the first time, over half of that money will be spent online.

Retailers are also changing their habits when it comes to opening times today. In previous years, many have started their sales at midnight, in order to maximise the shopping time available for consumers. But many stores are now choosing to revert to normal opening hours (something of a relief for staff, I’m sure!).

Surveys have shown that 59 per cent of shoppers do not agree with stores opening on Thanksgiving. But it’s not just consumer pressure, and benevolence to staff, keeping stores closed. The fall in in-store trading over the Black Friday weekend means that retailers aren’t turning as big a profit as they would like.

Add to the mix increased costs of opening (higher staff wages, security, logistics, and potential bad press), and it shows why retailers are stepping back from early opening.

Black Friday ‘Creep’

Another reason for retailers not seeing the benefits of Black Friday in store is the so-called ‘creep’. Much like adverts for Christmas 2017 started a few weeks ago (I kid you not…), online retailers have started to spread the sales out.

Amazon, largely considered to be the biggest exponent of Black Friday, started their sales in early November. And it plans to run these daily sales until the 22nd of December too. They weren’t the only ones, with Tesco amongst a host of companies starting sales earlier this week.

Some online retailers have done this to spread the logistical load of ensuring everyone gets their purchases in time for the holidays. Amazon are clearly learning their lesson from a few years ago, when it experienced serious bottlenecks in deliveries.

Bad Deals and Brexit

One thing that consumers need to be aware of before splashing the cash is that they might not be getting the best deal. A report from Which found that only half of Black Friday deals are actually cheapest on that day.

Retailers have been accused of inflating their pre-sale price to make a deal seem better. And, in fact, shoppers may have been able to find products cheaper at different times of year. The UK Government’s Pricing Practices Guidelines (PPG) states that any sale “must reflect the most recent price an item has been sold at for 28 consecutive days or more.”

So it’s worth being careful when it comes to your shopping, and not get swept up in the promotions. However, that said, UK shoppers might want to take advantage of the lower prices this year. As has already been seen this year, prices for goods and services look set to rise in 2017 as a result of Brexit and a weak pound.

The majority of rises are likely to happen in January, with Next, electronics retailer AO, Apple, Microsoft, and Dell, all either anticipating rising costs, or putting prices up already. So it might be that British shoppers won’t get the same deals this time next year.

The Last Word

Deals or no deals, I’ll be one of the Millennials shopping online today (after working hours, of course!). However, I wanted to leave the last word on Black Friday to Asda. The retail giant was one of the first UK stores to bring Black Friday deals to this country, thanks to its links to Wal-Mart.

However, following chaotic and violent scenes in 2014, the company shelved its plans last year. And for 2016, they’ve taken a novel approach to announcing a similar strategy for today, and why they’ll aim to have low prices all year round.

If nothing else, the video should make you smile. Happy shopping!

How Our Consumption is Driving Global Warming

Global warming isn’t just about the cars we drive, or the industries we run. Our consumption is a much bigger driving factor that we might know.

Consumption and Global Warming

This article was originally published on Farm Machinery Locator.

When we think about global warming many of us immediately think about cars and industry ruining the planet, but does this tell the whole story?

While transportation, including travel by road, sea and air, contributes over 13 per cent of our annual CO2 emissions there is another factor, which we may not initially consider, but which has a bigger impact.

Figures highlighted by Farm Machinery Locator show that there are nearly 8.3 million cows in the UK alone. These cattle provide us with hundreds of thousands of litres of milk, and thousands of pounds of beef every day. We often assume that agriculture is natural and therefore can’t be damaging to the environment, but that assessment is wrong.

The ever-increasing amounts of farm machinery – tractors, cultivators, combine harvesters and balers – for sale and in use, only adds to the current issue of rising average temperatures across the world, due to the pollution they expel.

So, whilst being natural, the negative connotations of farming and the agricultural industry mustn’t be brushed over. We will explain the role livestock plays in global warming too, below.

Livestock’s Contribution to Global Warming

In fact, if we look at figures published by the Food and Agriculture Organization of the United Nations, agriculture contributes 18 per cent of the total release of greenhouse gases worldwide, a much higher figure than that for transportation.

Emissions from cattle are particularly damaging because it is not CO2 that cows are releasing, but methane. Every single cow releases between 70 and 120kg of methane per year. While this is a greenhouse gas like CO2, its detrimental impact on the planet is 23 times higher than the negative impact of CO2.

In addition, livestock cause over two-thirds of the world’s ammonia emissions, and this greatly contributes to acid rain. When you consider there are over 1.5 billion cattle worldwide the damage quickly adds up.

Livestock figures are rising because of the general increase in our level of prosperity, which brings with it a higher demand for beef and milk. It’s not only emissions from cattle however that are causing problems to the planet. Intensive farming also leads to a whole range of other environmental issues.

Land Clearance and Deforestation

Livestock now use over 30 per cent of the world’s available land. Much of this is used for grazing although there is also a substantial portion which is utilised to grow feed.

A need for all this space has been a major contributor to deforestation, and with deforestation a further release of CO2 into the atmosphere occurs. This comes about due to two main reasons.

First, as the trees are cut down, the carbon dioxide they store is released. Second, fewer trees leads to lower levels of photosynthesis, a process which would normally help to absorb carbon dioxide.

In addition, once land has been cleared, if it is then overgrazed it runs the risk of turning to desert. This has already happened on 20 per cent of pastureland.

Drought

Cows also use a substantial amount of water. Each cow requires 990 litres of water to produce just one litre of milk. As global warming continues an upward trend, water becomes ever more precious.

Furthermore many of the antibiotics and hormones used to treat cattle can end up in drinking water. This can then lead to risks to human health.

Pollution

There will always be a level of pollution produced by livestock and ultimately this will wash down to sea level. Nutrient run off causes an overgrowth of algae which consumes oxygen in the sea.

This can kill coral reefs and lead to so called ‘dead zones’. One in the Gulf of Mexico is around 6,500 square miles in area. It has predominantly been caused by US beef production waste, which is carried down to the coast by the Mississippi River.

We all need to lower our carbon footprint. And when we realise how much of an impact agriculture has on the environment, we should consider reducing the amount of meat and milk we consume.

The planet’s population is growing substantially every year. The western diet, which is meat and dairy heavy, has a widening appeal, even in countries where fruit and vegetables used to be the mainstay of meals.

If we want to become greener in all areas of our lives we should all be a little more aware of the detrimental impact our own consumption of meat and milk is having and take steps to reduce it.