As the dust settles on Black Friday 2024, the retail landscape lies transformed—a battlefield where traditional marketing strategies have been both challenged and exposed. What began as a single day of deals has metamorphosed into a month-long discount marathon, leaving brands and consumers alike questioning the very nature of value, consumption, and economic sustainability.
The numbers tell a stark story. In the United States alone, online spending reached a staggering £10.8 billion, with 131.7 million shoppers participating in what has become less of a shopping event and more of a consumer phenomenon. Mobile devices drove 57.6% of all purchases, while Buy Now, Pay Later (BNPL) options facilitated a remarkable £16.6 billion in transactions. Yet beneath these headline figures lies a more complex narrative of retail fatigue, consumer skepticism, and systemic challenges.
Consider the conundrum: 62% of shoppers believe Black Friday is fundamentally a “scam,” and 81% acknowledge it promotes rampant consumerism. Despite this critical view, 82% still participated—a testament to the powerful gravitational pull of perceived savings and the deep-rooted marketing machinery that drives these events.
The expanded Black Friday ecosystem represents more than just a shopping trend; it’s a microcosm of broader economic and cultural shifts. Retailers have found themselves trapped in an increasingly unsustainable cycle of endless discounting, where margins are squeezed razor-thin and brand value becomes secondary to short-term sales targets.
For brands, the current model is increasingly untenable. Top discounted categories—toys at 28% off, electronics at 26.9%, and apparel at 24.2%—represent not just price reductions, but potential existential threats to long-term profitability. Each percentage point of discount isn’t merely a margin hit; it’s a strategic concession that can reverberate through quarterly financial planning and potentially compromise an entire year’s financial strategy.
The generational dynamics add further complexity. Millennials remain the most consistent shoppers, while Gen Z’s participation is declining—a nuanced shift that demands sophisticated, segment-specific approaches. Baby boomers overwhelmingly prefer home delivery, highlighting the need for multi-generational marketing strategies that go beyond blanket discount messaging.
So how do we reimagine this broken model? The path forward requires a fundamental recalibration of both retailer approach and consumer expectations.
Consumer education must become the cornerstone of this transformation. Brands need to move beyond simply offering discounts to providing genuine value propositions. This means demystifying pricing strategies, promoting transparency, and challenging the current discount-driven culture. The goal is to shift from a model of impulsive consumption to one of mindful, value-driven purchasing.
Technology will play a crucial role in this evolution. Personalised recommendation engines, AI-driven value assessments, and ethical shopping platforms can provide consumers with more nuanced, meaningful shopping experiences. These technologies can help break down the binary of “discount” or “full price” and instead offer contextualised value assessments.
Financial literacy must also be a key focus. The rise of Buy Now, Pay Later options, while convenient, masks potential long-term financial risks. Retailers have a moral imperative to educate consumers about responsible spending, providing budgeting tools and transparent information about the true cost of credit.
Moreover, brands must embrace a more holistic approach to value. This means highlighting product quality, ethical production, environmental sustainability, and long-term utility over short-term savings. The future of retail isn’t about how cheaply you can sell something, but about how meaningfully you can engage with consumers.
For smaller brands and retailers, this presents both a challenge and an opportunity. The Black Friday model has created a high-stakes environment where participation feels mandatory, yet the financial risks are substantial. The key is to develop targeted, strategic approaches that differentiate beyond price—creating unique value propositions that resonate with specific consumer segments.
The payment landscape itself is evolving. With BNPL projected to reach £80.77 billion in 2024 and 11.2 million new shoppers exploring alternative payment methods, retailers must be agile. Flexible, transparent payment options that prioritise consumer financial health will become increasingly important.
As we look to future iterations of Black Friday, the most successful brands will be those who understand that this is no longer just a shopping event. It’s a reflection of our broader economic and cultural values. It’s an opportunity to rebuild trust, promote responsible consumption, and create more meaningful connections with consumers.
The question is no longer about how much you can sell, but about how meaningfully you can engage. Are retailers ready to transform Black Friday from a potentially destructive discount feeding frenzy into a purposeful, value-driven shopping experience?
The future of retail hangs in the balance.
This isn’t just a problem for individual brands/ retailers—it’s a challenge for the entire retail industry. To break free from this unsustainable cycle, we need collaboration and collective action. The answer lies in rethinking value:
Educating consumers about mindful consumption
Leveraging technology for personalised, meaningful shopping experiences
Shifting from discounts to ethical, transparent, and sustainable practices
No single retailer can solve this alone. This needs to be an industry-wide movement, transforming Black Friday from a destructive discount frenzy into a purposeful, value-driven shopping experience.
Are retailers and brands ready to work together to make this change?
What’s your next move?
Cognitive Union is a progressive, boutique learning and performance consultancy. We work with forward-thinking businesses. Transforming their people. Shaping their culture. Helping them embrace change and take on the world. Find this blog useful? Sign up to our email newsletter (bottom of this page) where you can receive articles like this and other insights (not publically published), and you can also follow us on LinkedIn.