The broken economics of Black Friday

Fashion is addicted to slashing prices because brands make too many clothes

Black Friday is the biggest day in the retail calendar, and it looks like it’s going to be an extra big one this year. That’s partly because inflation is putting a dent in shoppers’ bank accounts — so stores need big markdowns more than ever — but also because there’s still so much product out there after the post-pandemic spending spree. And what are you going to do when shoppers are broke and you’ve got too much stuff in the warehouse? Go on sale.

Even before the pandemic turbocharged shopping habits, Black Friday had grown into a giant, all-encompassing beast. Rather than a one-day flash sale, it’s now an entire week of markdowns. And this year it’s come straight after a “mid-season” sale, which might just be a subtle way of saying that pretty much the whole season is a sale. And if retailers don’t hit their targets this week, there’s always Cyber Monday, and if that doesn’t work out, then we’re only six weeks away from January.

Slashing prices is a completely ordinary part of the e-commerce game now, and it’s pretty much a given that late November to early January = the time to buy stuff for cheaper. There’s different ways to do it, and brands have also started restricting what can and can’t be marked down (not that everyone listens, though). Ssense’s sale is legendary in its size and scope, and this year the platform is taking it semi-private — you need to sign up to the newsletter to access it, probably so they can email you about more sales next year. LN-CC, meanwhile, invites you to join a Whatsapp chat to get early sales access. Net-a-porter already has over 10,000 items at up to 80% off. 

But at the end of the day, sales season only exists because brands make too many clothes to begin with.