Black Friday and Cyber Monday are a US sales tool which proves perfectly pointless for the UK channel and might die out.
Black Friday is a US retail sales event popularised by global giant Walmart but appeared to catch on in the UK. Commerce consultancy Salmon predicts that it will raise a £1 billion online shopping day in the UK.
But it is starting to look like it will come unstuck. Walmart-owned Asda recently announced it would not take part in the event this year after listening to customers’ views. Basically, no one wanted to see British people fighting in shops.
But vendors are started to suggest that the Black Friday numbers don’t stack up. They are losing 30 or 40 percent of their margin and are wondering if it is worth it.
Vendors like VIP are telling the press that in tech, where the margins are so slim, you’re going to end up with people saying ‘I don’t want to participate in it’ next year and the year after”.
The theory is that Amazon and Dixons will continue the tradition, but other major brands will give the sale a miss as they gingerly fondle their bruised bottom lines. After all they are taking money away from the busy period – Christmas, which is when many resellers make most of their cash.
Analyst Context’s founder Jeremy Davies agreed that the phenomenon could be on its way out. He said that the whole Black Friday thing will weaken next year because the experience has been negative.
US retail giant Walmart is looking to an open source cloud to turn the tables on Amazon.
Walmart, which owns Asda, saw its shares fall 10 percent this week following news that the company will grow just three to four percent over the next three years, with profit dropping 12 percent in 2017.
Chief Financial Officer Charles Holley blamed rising wages, and the increased cost of training staff. It’s not until 2019 that revenue will grow again.
Walmart is still bigger than Amazon in terms of revenue, but after 18 years, Amazon.com’s market value stands at $254.8 billion. Walmart this week managed to wipe more than $21 billion off its value, down to $213.9 billion.
This is where the cloud comes in. Walmart is creating WalmartOne, which runs on the open source OneOps cloud computing code.
OneOps is Walmart’s own cloud platform, with the company claiming it changed the way its engineers developed and helped shaped how Walmart launched new products to customers.
This week WalmartLabs said OneOps will be released to the world as open source, with the source code being uploaded to code repository GitHub by Christmas.
This means that Walmart is taking the fight to Amazon Web Services by giving developers a chance to avoid vendor lock-in, a situation in which companies are stuck to contracts and technologies supplied by one cloud provider.
King added that by making the platform open source, OneOps will drive competitors to “compete based on price, customer service and innovation.
Bricks and Mortar outfits in the US have been warned against competing against online retailers, after a fraud emerged which cost Walmart thousands.
Walmart had been running a deal, where it promised to match any price found online.
However some customers worked out that the only thing they needed to show Walmart was an Amazon advert.
All they did was register an account which created an official looking Amazon page with a bogus advert on it.
Few Walmart employees appear to have verified the legitimacy of these online deals and many customers were able to buy PS4 gaming systems for $90.
Walmart should have known better. Consumerist found that Sears accidentally listed several Nintendo consoles on its site for $60. Members of Twitter and Reddit communities posted pictures of receipts documenting that Wal-Mart had accepted these fake Amazon listings.