3 Key Strategies Every Retailer Should Focus on to Make Black Friday Profitable
3 Key Strategies Every Retailer Should Focus on to Make Black Friday Profitable
Black Friday has continued to evolve from a single day of deep discounts into a multi-week retail event that kicks off the most lucrative season of the year. While the potential for sales is massive, so is the risk. Retailers face mounting pressure to deliver record-breaking results, all while protecting margins, managing inventory, and meeting the high expectations of omnichannel shoppers.
To stay competitive in 2025 and beyond, success depends not just on discounts but on strategy, data, and technology. Here are the three most critical areas every retailer should focus on to make Black Friday not only successful but truly profitable.
1. Strategic Planning: From Forecast to Fulfillment
Black Friday doesn’t start in November, it begins months earlier with planning. The most profitable retailers are those that take a data-driven approach to forecasting demand, aligning inventory, and preparing their teams across every channel.
Use Data to Drive Smarter Forecasting
A robust Merchandise Management System (MMS) helps retailers predict what shoppers will want, where, and when. By analyzing historical performance, seasonal trends, and external factors such as tariffs or economic conditions, planners can make accurate, agile decisions about product allocation and pricing.
A key part of this process is open-to-buy (OTB) planning, which ensures working capital isn’t tied up in slow-moving stock. Retailers who plan accurately can reserve budget for late-season reorders of top sellers, ensuring shelves (and websites) stay stocked without overcommitting early.
Build Flexibility into the Supply Chain
The most successful Black Friday operations are resilient and adaptive. Retailers using Order Management Systems (OMS) with real-time visibility can redirect inventory between stores and online channels, fulfilling orders from the most efficient location.
For example, if one store is overstocked, an integrated OMS allows inventory to be sold online or transferred to high-performing locations. This not only improves customer satisfaction but reduces markdown risk — protecting margin long after Black Friday.
Scenario Planning for Peak Demand
Advanced planning tools also allow retailers to test different demand scenarios, best case, expected, and worst case, to prepare for fluctuations. By simulating potential sales outcomes, planners can adjust promotions, stock levels, and fulfillment strategies to ensure profitability under any conditions.
Planning doesn’t end when the doors open, it’s a continuous process that fuels agility.
2. Omnichannel Experience: Meeting Customers Wherever They Shop
Black Friday shoppers don’t think in channels. They browse on mobile, check prices online, and make purchases in-store or for pickup. Retailers who can provide a frictionless omnichannel experience are more likely to capture and retain those shoppers.
Ensure Real-Time Inventory Accuracy
Nothing frustrates customers faster than an “out of stock” message or incorrect availability. Integrated MMS and OMS systems ensure that inventory levels are always accurate across all touchpoints, from eCommerce to POS. This transparency enables features like buy online, pick up in-store (BOPIS) or reserve online, try in-store, which are increasingly popular during peak shopping periods.
According to research from the National Retail Federation (NRF), more than 70% of holiday shoppers now engage with both online and offline channels before making a purchase. That means consistency, in pricing, inventory, and promotions, is no longer optional; it’s essential.
Consistent Promotions Across Channels
An effective Price and Promo Management tool ensures that your promotional strategies remain synchronized across all sales channels. Customers expect the same deal online and in-store, and inconsistencies can lead to confusion or even cart abandonment.
By managing discounts centrally, retailers can ensure smooth execution — running flash sales, time-limited discounts, and bundle offers that align across regions and channels.
Personalize the Experience
Omnichannel excellence also means personalization. Using Business Intelligence (BI) data from systems like Island Pacific BI, retailers can understand customer buying patterns and tailor marketing messages, loyalty offers, and product recommendations. For example, if a shopper frequently buys in one category, predictive analytics can suggest complementary products, increasing basket size without heavy discounts.
The goal? A seamless, customer-centric shopping journey that drives loyalty beyond the Black Friday weekend.
3. Margin Management: Balancing Discounts with Profitability
The temptation during Black Friday is to go all in on discounts but price-slashing alone isn’t sustainable. Retailers who thrive during Black Friday focus on smart pricing strategies and margin management to protect profitability.
Plan Markdown Strategies, Don’t React
Markdowns should be strategic, not reactive. Using a Merchandise Management System with predictive analytics, retailers can identify when and where discounts will have the greatest impact. Planned markdowns, tiered discounting, and dynamic pricing ensure that retailers maximize sell-through without eroding overall margin.
For example, a retailer might start with smaller, targeted markdowns for loyalty members or online early-access shoppers, then scale discounts gradually based on demand. This creates excitement while maintaining profitability.
Optimize Pricing in Real Time
With the right systems in place, retailers can adjust prices dynamically during the event based on sales velocity, competitor pricing, and stock levels. A fully integrated MMS and OMS enables this agility, ensuring retailers don’t miss out on sales opportunities or get stuck with excess stock post-event.
Retailers can also use pricing analytics to evaluate which promotions drove the most revenue and which eroded margin unnecessarily, turning each campaign into a learning opportunity for the next season.
Reduce Returns Through Data Insight
Returns can eat into Black Friday profits, particularly in categories like apparel and electronics. Retailers using data-driven BI tools can analyze return reasons, monitor product quality, and identify trends early to make better merchandising and marketing decisions.
By combining data from sales, customer feedback, and fulfillment channels, retailers can refine product descriptions, sizing guides, and recommendations, reducing returns and protecting post-sale profit.
Bringing It All Together: The Connected Retail Advantage
The key to making Black Friday profitable lies in connection, connecting planning with execution, online with in-store, and data with action.
This is where Island Pacific’s retail solutions deliver unmatched value. The combination of its Merchandise Management System (MMS), Order Management System (OMS), and Business Intelligence (BI) suite provides retailers with a unified platform to manage planning, inventory, pricing, and performance.
With these tools in place, retailers can:
Achieve end-to-end visibility across channels and operations
Execute promotions confidently while maintaining healthy margins
Deliver seamless omnichannel experiences that boost conversion
Make informed decisions through real-time data and analytics
Final Thoughts
Black Friday 2025 is shaping up to be one of the most competitive yet but also one of the most promising. Retailers who take a strategic, tech-driven approach can turn the chaos into opportunity.
By focusing on:
Planning and forecasting with precision
Delivering an exceptional omnichannel experience
Managing margins intelligently through smart pricing and analytics
Retailers can transform Black Friday from a margin-draining rush into a sustainable driver of long-term growth.