Black Friday has become synonymous with discounted offers, and retailers preparing for a slow Christmas will have used the day to drive sales. Keith McLachlan, a fund manager at AlphaWealth, said discount days increased sales and provided cash flow and working capital. "So if you have a weak Christmas, which everyone is expecting, then you have a lot of inventory that hasn't been moved," said McLachlan. This meant that your cash flow looked terrible. "If you can sell inventory before [Christmas] and convert it into cash, then your liquidity, solvency and your cash-flow metrics look a lot better in that reporting period, even though [sales] may be discounted. It may not be as profitable from an accounting perspective [but] it will be cash generative and will make those ratios look very good." And so, behold Black Friday, one of the biggest events on the global retail calendar. The concept was born in the US, marking the day after Thanksgiving, and was put onto South Africa' s retail ...
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