Gil David’s Post

According to BDO, UK online sales across fashion, homeware, and lifestyle fell by -7.8% in November, marking the worst result since March 2022. And that's despite record levels of discounting in the run-up to Black Friday. What does this tell us? Heavy discounting isn’t a silver bullet and while it might have helped a little, sometimes it's impossible to swim against the tide. Despite brands slashing prices to stand out, shoppers were still holding back. So I'm interested to see how this month turns out when all's said and done. In this macro environment, cost-of-living pressures have meant that even peak discounting hasn't been enough to guarantee conversions. Inflation has crept up and up and speaking for myself, regular household shopping that used to cost £100 is now more like £140 and using the universally-accepted measure of the cost of a pint of lager, everyone I know complains how much that's risen over the past year or so. From the BDO data, it seems like fashion and homeware in particular are feeling the heat. This shows fashion sales fell -8.7% YoY, while homeware dropped -8.4%. Lifestyle was slightly less grim at -5.4%, but still in decline. Many brands leaned hard into 50-80% off this year. But how much of that volume was actually profitable? For most, slashing margins to drive sales isn’t a long-term growth strategy, it’s a short-term band-aid. A band-aid that fell off last month, when usually it works just fine. The takeaway? Relying on discounts to "save" peak sales periods like Black Friday might not cut it anymore. Now, BFCM might go back to normal next year but just in case, brands need to be smarter. At least try to build long-term loyalty instead of training customers to wait for discounts (easier said than done, especially in a slower market). Focus on LTV, not just CPA. Retention strategies are key when new customer acquisition gets tougher. This is where a good email strategy is critical but also clever use of new product drops, tactical promotions and bundling to keep customers engaged and coming back for more. Aim to differentiate through brand, value, and messaging—not just how deep you can discount. November is telling us something important: consumer behaviour has shifted this year, and as if eCommerce didn't get enough of a wake up call in 2023, the COVID boom is long over. Throw in recent privacy and tracking updates along with everyone still navigating our new AI-obsessed world and it's an even more challenging environment for both brands and agencies alike. What do you think? ------------------------------------------------------ If you’re ready to start building smarter, more sustainable growth strategies in 2025, reach out to me here on LinkedIn or email me gil@run-dmg.com. At Run DMG, we help brands drive real results, even when the market’s tough. We are close to capacity so can only take on 2 more new clients, but I am in the process of hiring so more spots should open up in Feb/March.