Black Friday BTS

⏰ Today in 5 minutes or less:

• Preparation for Black Friday can take 18 months in advance.

• Scott LaBoda’s predictions for Black Friday 2024.

• Visualize your problem-solving approach better.

 Black Friday Merchandising With Scott LaBoda

Consultants, are you ready to spend this Black Friday?

If you don’t have a plan to tackle the holiday rush yet, here are some insights from Scott LaBoda – a merchandising expert who worked as the Vice President of Merchandising Strategy & Operations at lululemon athletica and Director of Global Panning at TOMS.

In this Q&A, Scott shares his approach to strategic planning, balancing brand integrity with holiday demand, and predicting trends for the 2024 shopping season.

Watch our Black Friday special here:

What's your most memorable Black Friday story from your experience in merchandising?

Scott: At lululemon, we had a unique approach. The strategy was and still is to maintain a full-price philosophy, even on Black Friday. But realistically, we couldn’t sit the day out entirely.

Preparation started about 18 months in advance during the product creation cycle. We’d ask, “What will be the hero product on the front table? What can we sell for $98?”

For fall, we focused on cozy items under $100 – a price point that’s perfect for gifting. It wasn’t about major revenue drivers but rather incremental purchases that brought in traffic and encouraged easy add-ons for shoppers already in the store.

On the day itself, it was an all-hands-on-deck situation. Merchants visited stores, observed customer behavior, and analyzed hourly sales reports. If needed, we made real-time adjustments, like deploying additional inventory to ensure nothing ran out.

The goal was simple: never be out of stock on the key items we had planned for.

How does the non-promotional strategy influence Black Friday at lululemon?

Scott: It’s all about maintaining brand integrity. We don’t market products by price point. Instead, we layer marketing themes or product stories onto key items to create demand. Pricing is only visible in-store. This approach draws people in without undercutting the brand’s premium image.

That said, Black Friday does provide an opportunity for subtle inventory clearance. We’d roll out an extra rack or two in the back of the store for leftover stock, but it was never front and center. Customers had to find it. This strategy allowed us to clear lingering inventory without compromising the store's overall aesthetic or full-price philosophy.

What trends are you predicting for Black Friday 2024?

Scott: Consumer spending has remained surprisingly resilient, but there’s been a divergence among different tiers of retailers and brands. Walmart has been performing well, for example, but Target has struggled. We’re seeing economic pressure on the top 20% of consumers, who are beginning to downgrade their spending.

This shift will impact the luxury market. Outside of the absolute top-tier brands like Hermès, luxury retailers are likely to face challenges. Lesser-known brands might have excess inventory, but don’t expect significant markdowns – especially not from brands like Louis Vuitton, which would rather disassemble unsold items than sell them at a discount.

In the mass retail space, the days of massive discounts – think 60-70% off – are fading. Supply chain issues have been resolved, and most retailers are properly inventoried. The brands that still have too much inventory are typically the ones struggling with relevance.

How do you see consumer behavior shaping this year’s holiday season?

Scott: There’s a clear bifurcation happening. Brands will fall into two camps: winners and losers. The winners are the ones making smart moves and adapting to changing consumer preferences, while the losers are falling behind.

Luxury spending, aside from a few marquee brands, will likely be down. On the other hand, mass-market retailers that have optimized their inventory and product strategies should fare better.

Overall, discounts will likely be lower than in past years, but resilient consumer spending should still make for a robust holiday season.

What lessons can other brands take from lululemon's Black Friday strategy?

Scott: It all comes down to planning and understanding your customer. Black Friday isn’t just about massive sales – it’s an opportunity to attract traffic and offer incremental purchases that complement your core offerings. By starting the planning process 18 months out, we ensured that the right products were available at the right time, at the right price point.

At the same time, maintaining brand integrity is critical. A strong brand can attract customers without resorting to heavy discounts, and a thoughtful merchandising strategy can balance traffic-driving items with opportunities for subtle inventory clearance.

It’s about being intentional and staying true to your brand’s identity.

The Value Chain Framework

Here’s an easy way to visualize a solution – the Value Chain framework. 

It’s the bread-and-butter for consultants when discussing their problem-solving approach.

Picture this: our client, a manufacturing company, was grappling with inefficiencies that were bleeding their bottom line. They were in a pickle, but who better to untangle this mess than an experienced consultant? 

We began by breaking down the company's operations into phases and specific steps.  

Visualizing these steps on the Value Chain framework helped the client see the big picture and understand the connections between phases and steps. 

From there, we identified inefficiencies and bottlenecks caused by unsynchronized procurement – which led to delays and increased costs. 

To address the issues, we implemented an improved tracking system to ensure timely deliveries and streamline logistics. 

By the end of our partnership, the client had not only organized their processes better but also experienced a significant boost in profitability. 

And I got to add another success story to my case studies. 

If you need a quick template of this framework, download the deck here.

💼 See if you’re qualified…

• Chief Strategy and Development Officer at Lifelong Medical Care, 15+ years of senior-level management experience, ~$225k-275k 

• Stripe Sales Strategy and Operations Analyst, 5+ years of work experience in sales/business operations, ~$110k-165k 

• Director of Practice Management at Manatt, Phelps, & Phillips, LLP, 5+ years of financial analysis experience, ~$175k-225k 

• Senior Analyst – Revenue Excellence at McKinsey’s SHaPE, 4+ years of experience in a healthcare environment, ~$125k-$130k 

• Business Analyst – Manufacturing & Supply Chain at McKinsey & Company, 1+ years of consulting experience, ~$120k-$125k 

Remember, the path to success is paved with continuous learning and embracing fresh perspectives.

Let's stay connected, share ideas, and elevate your consulting business.

Stay curious, friends.

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