Black Friday Boom or Bust for Retailers?

The “Black Friday” phenomenon which has made its way over to the UK from the US is going to be taking place this year on Friday the 27th of November, and this is going to be a very important time for many UK based retailers.

In fact it is estimated that as many as one in five retailers in the UK will be massively slashing their prices not only on Black Friday but in the few days in the run up to this major shopping event. We reported in July the UK Retail Market Sector took a battering in share values after the UK Budget came out and this event could bring shares back up.

However, as has recent history has proven, not all retailers are set to make a killing in a financial sense of the word during the Black Friday shopping frenzy, and it really can be a make or break time of the year for all companies in that market sector.

As a Binary Options trader you should be viewing Black Friday as a potential money making opportunity, and you should be taking a closer look at all retailers that will be taking part in it.

For if you can spot any retailer that is piling them high and selling them cheap so to speak, and have queues forming outside their stores on the morning of the 27th of November the respective share prices of those companies may just be about to increase.

It is not only retailers who have a high street presence that are going to be holding sales on Black Friday for the vast majority of online retailers are also looking to cash in, with Amazon being one such company who are gearing up to some huge price reductions.

That does of course mean that whilst many retailers will be hoping their stores are full of shoppers willing to part with their cash, some of them many not have a successful day, and that is going to massively affect their bottom line.

With that in mind you should take a step back and take a full overview of this shopping event, for with profit margins cut to the bone, and with many shoppers now choosing to buy their Christmas presents on Black Friday the actual shopping frenzy which also follows in the run up to Christmas may also be affected.

You could actually find that some retailers who are not planning on holding any type of Black Friday offers and promotions may end up making more profit over the next couple of months, which is worth keeping in mind when you are selecting retailers to place Binary Options on.