The dark side of Black Friday: The hidden truth behind the biggest sale of the year

I’m a small business owner, and I’m frustrated. This Black Friday, many Aussie retailers are quietly breaking supplier agreements and discounting branded products below their allowable wholesale margin. What shoppers see as a bargain is actually the start of an unpoliced price-gouging war that is pushing small businesses to breaking point.

It’s been a brutal year for retail. The cost-of-living crisis, cuts to NDIS funding and rising housing pressures have left little disposable income for consumer purchases. At the same time, small businesses are absorbing rising operational, staffing, shipping and advertising costs.

In this environment, some retailers are turning to extreme tactics just to stay afloat. For the first time in my business career, I’m witnessing discounts that defy commercial logic.

I’ve watched retailers slash prices below what I can even purchase products for at wholesale. That’s not a sale – it’s sabotage. And small businesses like mine are being crushed in the fallout.

Some retailers are discounting branded products 30-50 per cent below the price we are contractually allowed to sell at. You cannot buy stock at those prices. In a desperate bid to generate cash flow or hit KPIs, the only way to offer these deals is by breaking supplier agreements or taking a deliberate financial loss. Either way, small retailers can’t compete.

Black Friday undeniably delivers a short-term cash injection to the retail sector. Around six million Australians are expected to take part this year, spending an average of $804 each (ABC News, 2025). But what isn’t being discussed is the aftermath.

One small business owner told me their Black Friday sales revenue exceeded the entire rest of their year combined but how do you survive the other eleven months? Once you discount below cost, the damage to your margins, your brand value and long-term customer expectations is immense.

This year, Black “Friday” has blown out into a month-long retail frenzy, with many sales kicking off in late October. But behind the flashing banners and countdown timers is a sector under acute pressure.

Consumers believe they’re winning, but many of the deals they’re seeing are neither sustainable nor, in some cases, compliant. It’s distorting Australians’ perception of what products should cost.

When you strip out your margin in November, you’re entering December and the following months exposed. For small businesses already stretched, that vulnerability can be the difference between staying open and shutting their doors.

My advice to consumers? This year, more than ever, shopping small is not just a good intention – it’s a lifeline for the businesses that keep our communities running.

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