Local retailers enjoy Black Friday sales boom

An American shopping phenomenon is set to become a regular event in Bermuda.

A handful of retailers held a Black Friday sale for the first time last week, copying the traditional post-Thanksgiving Day extravaganza in the U.S.

Stores taking part in Bermuda included a beauty salon, a hardware store, a toy shop and cellphone providers.

Consumers took advantage of discounts of up to 30 per cent, with BlackBerry smart phones the biggest deal of the day, retailing for just $9.

Although some stores reported mixed results, all said Black Friday was here to stay, with the concept just needing to take hold in Bermuda.

Discounts

In the U.S., Black Friday is the biggest sale of the year. It is so named because retailers usually get enough sales on their books to get their accounts back into the black.

Companies offer big discounts to lure shoppers in for the start of the holiday shopping season.

Last weekend, the U.S. National Retail Federation reported sales of $45 billion.

The average shopper spent $365 over the holiday weekend, a 6.4 per cent increase from last year.

With the global economy still in the doldrums, more people are seeking out early Christmas bargains.

In Bermuda, the cold wind of the recession is forcing some retailers to re-examine their business strategy.

In September, retail sales dropped 5.9 per cent, falling for the 18th consecutive month. The Bermuda Small Business Development Corporation and Chamber of Commerce last week launched a Shop Local campaign to encourage people to buy Bermuda.

But some retailers opted for the Black Friday price blitz on Friday.

At Gorham’s hardware store, general manager Andrew Mackay said the sale aimed to “keep people shopping locally”.

Up to 30 items were discounted at 30 per cent.

Mr. Mackay said: “Household goods and a DVD player sold well but nothing sold out. We were expecting it to generate more interest so it was a bit disappointing.

“But Black Friday is a new concept on the island so people are perhaps not as perceptive to it.”

He said the company would “definitely” hold another sale in 2011.

He added: “Next year it will be bigger and better.

“If you’re in retail you’ve got to have a sale like this. It’s the U.S. style and if you want to play the game you’ve got to think outside of the box.

“Retail is constantly evolving and you’ve got to evolve your business.”

Kafu Hair and Beauty Salon also held a Black Friday promotion, offering a two-day 30 per cent discount on all services.

Glen Wilks, manager, said: “The response was reasonably good, so it was a success.

“We had a few new people but mainly it was our core group of clients. It was an early Christmas present.”

Mr. Wilks said it was “more than likely” Kafu would hold a similar sale next year.

Queues

He added: “In light of the current economic situation people want to get the best value for their dollar.”

In Queen Street, Daisy & Mac reduced toys, clothes, accessories and furnishings by 30 per cent.

For the island’s cellphone providers, Black Friday helped business boom.

Footfall was higher than expected, with queues outside the door by people eager to bag a BlackBerry smart phone for just $9.

At M3 Wireless, Diana Winfield, vice president of sales and customer operations, said: “It’s the first time we’ve had a Black Friday sale.

“It seemed quite a fashionable thing in the U.S. and some of our customers said to us, ‘Why don’t you do a Black Friday here?’ We thought, why not?”

M3 Wireless began planning their sale in September, setting pricing and ­anticipated order levels.

On Friday people were able to sign up for a two-year contract and pay $9 for a Pearl 3G, or $49 for a Curve 8520, $89 for a Curve 3G, $299 for a Bold 9700 and $399 for a Torch.

The queue of customers stretched 10 metres down the street before M3 Wireless opened its doors at 8am.

Mrs. Winfield estimated up to 200 customers signed up for the deal.

Digicel reported similar numbers for its BlackBerry Friday event.

Prices for a two-year contract were $9 for a Curve 8520, $89 for a Curve 9300, $149 for a Bold 9700 and $499 for a Torch 9800.

Shane Mora, Digicel Bermuda marketing director, said: “When we came in at 7:30am we had a line going down the street. It was steady all day.”

Mr. Mora said the Curve 8520 usually retails for $149.

He said: “It’s the first time we’ve done a sale this intensive. Looking at the ­response we would definitely do this again.

“It was an experiment but there definitely seems to be a real excitement around Black Friday.

“People are more perceptive to what’s happening in the retail sector right now because they are preparing for Christmas shopping.”

But Kristi Grayson, chairman of the retail sector of Bermuda Chamber of Commerce, said: “I don’t think Black Friday is a good idea for Bermuda as we cannot compete with the price reductions in the States.

“A sale like this just highlights the price differences.

“You cannot compare what Sony will sell something to Best Buy for, to what Sony sells something to a company in Bermuda for.

“I would suspect that having dramatic sales on the Friday after Thanksgiving is less effective.”