Black Friday: 3 reasons why Asda's ban is a good idea - and other shops should do the same

Black Friday shifts the traditional pattern of spending at Christmas

Clarke, the Asda CEO, said that shoppers are overwhelmed by sales and want a simpler approach (Getty)

Asda has said that it won’t be doing Black Friday this year – despite the fact that it is expected to be the biggest shopping day of the year as measured by sales, eclipsing Christmas and Boxing day.

Asda’s official line was that it wants to spread out the £26 million it is investing in Christmas savings across the holiday season, rather than cram them all into one day.

“This year customers have told us loud and clear that they don’t want to be held hostage to a day or two of sales,” said Andy Clarke, CEO of Asda.

The decision seemed surprising for two reasons: first Asda is owned by Walmart, which invests heavily in Black Friday discounts in the US. Secondly, Asda risks missing out on their share of the billions that UK shoppers are expected to spend on Black Friday.

But there are good reasons why Asda might be right about Black Friday and why other shops might eventually follow suit.

1. Black Friday skews sales for the whole of Christmas

We now know that rather than increasing the amount that shoppers spend in stores, Black Friday shifts the traditional pattern of spending at Christmas. A survey by Conlumino showed that in 2014, 60 per cent of shoppers timed their purchases around the sales. Customers spent less in October, according to statistics from the British Retail Consortium, because they were holding out for Black Friday deals.

Connor Campbell, senior market analyst at www.spreadex.com, said that last year Argos found Black Friday distorted their sales and created a discounting mentality that was harmful.

2. Shoppers are getting tired of it

Clarke, the Asda CEO, said that shoppers are overwhelmed by sales and want a simpler approach. Singles Day in China, Black Friday, Cyber Monday, Panic Saturday, Boxing Day and New Year sales make this a confusing time. “British consumers do suffer from sales fatigue as a result, creating a shopping culture that actively seeks out discount opportunities as the norm rather than the exception,” said Jon Copestake, Chief Retail Analyst at The Economist Intelligence Unit.

3. FIghting in stores can hurt a brand's reputation

Asda suffered a social media backlash last year after pictures and videos were posted online showing customers brawling over bargains in stores. Copestake said one way to avoid that reputational damage is to scrap flash sales and spread them out over time.

Asda’s decision may have a knock on effect on other stores that decide to take themselves out of the running and spread out sales over the period.

“There is a chance that the Black Friday phenomenon will fizzle out in the UK over time,” said James Miller, senior retail consultant at Experian Marketing Services. “Maybe we’ll see it become more about online sales than offline in the future. I suspect most people would prefer to buy online rather than have a fight in a supermarket!”