Navigating the Black Friday Surge: Lessons from Harvey Norman's Virtual Queue Debacle
In the fast-paced world of retail, Black Friday in the new Boxing Day sales in Australia with the Australia Retailer Association reporting that Australia’s are expecting to spend more than $6 billion across the four days of the cyber sales (Black Friday to Cyber Monday), it is a high-stakes battleground where consumers seek the best deals, and retailers strive to manage unprecedented online traffic. This year, Harvey Norman faced a unique challenge on Black Friday – a surge in website traffic that led them to implement a virtual queue system, something nobody wants to do unless you are selling concert tickets. This incident sheds light on the increasing complexities of supply chain management, order management and website development emphasising the need for robust strategies to handle unforeseen challenges.
Black Friday, synonymous with incredible discounts and frenzied shopping, has become a major phenomenon in Australia one that has overshadowed the more common Boxing Day sales and Click Frenzy. As consumers increasingly shift towards online shopping, retailers must ensure their digital infrastructure can withstand the massive influx of visitors. Harvey Norman, like many others, encountered unexpected difficulties as their website struggled to cope with the surge in online traffic
In response to the overwhelming demand, Harvey Norman swiftly implemented a virtual queue system assigned each visitor a place in line, allowing them to patiently wait for their turn to access the website without encountering crashes or slowdowns, at one point more than 50,000 people were waiting in the queue, it is reported that the virtual queuing system was in place for over 12 hours on the biggest sales day of the year. This strategic move aimed to maintain order and provide a fair and efficient online shopping experience for consumers doesn’t always work for time poor impatient consumer suffering from FOMO.
Harvey Norman's experience highlights the critical interplay between supply chain management and the digital realm. The virtual queue wasn't merely a technological fix; it was a supply chain decision designed to prevent an overload on their system and ensure a seamless customer experience. It’s obvious the digital team lead by Garry Wheelhouse at Harvey Norman knew there could be an issue because why else would have they invested in this virtual queuing system in the first place. The strategy was heavily ridiculed online especially by leading online retailer Ruslan Kogan who posted on LinkedIn “Where do you even buy this tech?” with around 100 people jumping in on the post commenting on their amazement that this would even happen. Such incidents prompt supply chain and omnichannel professionals to reevaluate their strategies, emphasising the importance of digital preparedness in tandem with traditional supply chain functions however in this case founder Gerry Harvey saying at the recent Annual General Meeting that many people who couldn’t make purchases online came into a store or phoned the customer line, many people are skeptical on how he would know this but Gerry being Gerry he is a master in misdirection.
Harvey Norman's Black Friday experience serves as a valuable case study for supply chain and omnichannel professionals. The incident underscores the interconnectedness of technology and supply chain management, emphasising the need for a holistic unified approach in addressing challenges. As the retail landscape continues to evolve, adapting to digital demands and integrating technology into supply chain strategies will be paramount for success in the competitive world of Black Friday and beyond.
