5 Reasons Small Businesses Shouldn’t Rely on Black Friday in 2025
Black Friday has long been considered a make-or-break sales event for retailers. But in 2025, the landscape looks dramatically different. With shifting consumer behaviors, economic pressures, and new retail trends, small businesses need smarter strategies to thrive during the holiday season.
Here are 5 key reasons why Black Friday isn’t the golden ticket it once was—plus data-backed alternatives to drive sustainable growth.
Reason 1. Declining Black Friday Foot Traffic (Online & In-Store)
2025 Trend: The Death of Doorbusters
- Physical store traffic dropped 12% YoY in 2024 (Sensormatic Solutions)
- Online Black Friday sales growth slowed to just 4% in 2024 (Adobe Analytics)
- 55% of shoppers now prefer year-round deals (NRF 2025 Consumer Survey)
Why It Matters for Small Businesses:
Black Friday no longer guarantees a surge in sales. Consumers are fatigued by artificial scarcity tactics (“doorbusters”) and are shopping earlier—or skipping the event entirely.
Better Strategy:
- Run “Black November” promotions to spread out demand
- Leverage Small Business Saturday (Nov 29, 2025) with local partnerships
Reason 2. Profit Margins Are Getting Crushed
2025 Reality: Race to the Bottom Pricing
- Discounts averaged 30% in 2024, up from 25% in 2023 (RetailMeNot)
- 42% of SMBs reported lower profits post-Black Friday (OnDeck 2024 Small Biz Survey)
Why It Matters:
Deep discounts attract bargain hunters, not loyal customers. Many small businesses end up losing money just to compete with Amazon and big-box retailers.
Better Strategy:
- Bundle products instead of slashing prices
- Offer exclusive perks (free shipping, gifts with purchase)
Reason 3. Supply Chain & Inventory Risks Are Higher Than Ever
2025 Challenge: Overstocking = Clearance Headaches
- 30% of SMBs over-ordered for Black Friday 2024 (U.S. Chamber of Commerce)
- Returns spiked to 18% of Black Friday sales (Narvar 2024 Returns Report)
Why It Matters:
Getting stuck with excess inventory leads to post-holiday fire sales, killing profitability.
Better Strategy:
- Pre-sell items to gauge demand
- Use just-in-time inventory with local suppliers
Reason 4. Customers Want Experiences, Not Just Discounts
2025 Shift: The Rise of “Retailtainment”
- 68% of Gen Z shoppers prefer brands that offer unique experiences (McKinsey 2025)
- Interactive shopping events grew 140% YoY in 2024 (Eventbrite Business Data)
Why It Matters:
A generic 20% off promo won’t cut it anymore. Shoppers crave memorable interactions.
Better Strategy:
- Host a pop-up or live demo event
- Create limited-edition holiday bundles
Reason 5. Cyber Monday Is Stealing the Spotlight
2025 Data: Online Now Dominates
- Cyber Monday 2024 hit $12.8B in sales vs. Black Friday’s $9.6B (Adobe)
- 73% of shoppers now research deals before Black Friday (Google Trends 2025)
Why It Matters:
If you’re not optimizing for digital-first shoppers, you’re missing the biggest sales day of the year.
Better Strategy:
- Shift budget to targeted Facebook/Google ads
- Offer early access to email subscribers
The Bottom Line for 2025
Black Friday isn’t dead—but relying on it alone is a risky move.
Instead:
- Diversify promotions across November & December
- Focus on loyalty-building over one-time discounts
- Optimize for online (especially Cyber Monday)
FAQs about Black Friday for Small Businesses in 2025
Q1. Is Black Friday still worth it for small businesses?
Yes, but not as a standalone event. In 2025, consumers spread their spending across November and December. Instead of a one-day sale, consider extended promotions or early access for loyal customers to maximize revenue without deep discounts.
Q2. How can I compete with Amazon and big retailers on Black Friday?
Focus on what they can’t offer:
- Personalized service (e.g., handwritten thank-you notes)
- Exclusive local products (limited-edition items)
- Community-driven experiences (in-store events, collaborations with other small businesses)
Q3. Should I offer discounts at all?
Discounts aren’t dead, but how you frame them matters.
Instead of slashing prices:
- Bundle products (e.g., “Buy 2, Get 1 Free”)
- Offer value-adds (free shipping, gift wrapping)
- Reward loyalty (discounts for repeat buyers only)
Q4. How do I handle inventory without overstocking?
- Pre-sell items (gauge demand before ordering)
- Use dropshipping for low-risk fulfillment
- Partner with local makers for just-in-time inventory
Q5. What’s the biggest mistake small businesses make on Black Friday?
Assuming deep discounts = guaranteed sales. In 2025, shoppers prioritize convenience, sustainability, and unique experiences over price alone. A better strategy? Differentiate your brand instead of racing to the bottom.
Final Thoughts
Black Friday isn’t the sales powerhouse it once was—but that doesn’t mean small businesses should ignore it.
Instead of relying on a single day, adapt to 2025’s shopping trends:
- Shift to “Black November” – Spread promotions to reduce pressure on one weekend.
- Prioritize profit over discounts – Use bundles, loyalty perks, and experiences to boost margins.
- Go digital-first – Cyber Monday now outperforms Black Friday; optimize for online shoppers.
- Leverage community – Partner with other small businesses for cross-promotions and events.
The key takeaway? Don’t bet everything on Black Friday. Use it as part of a broader holiday strategy—one that builds long-term customer relationships, not just one-time sales.
Need funding to pivot your approach? Explore flexible small business financing options to invest in marketing, inventory, and tech—so you’re not stuck relying on a single make-or-break day.