But why is it called Black Friday? What makes this day so special that it has become one of the biggest shopping days of the year? In this article, we’ll delve deep into the origins of Black Friday, explore its evolution into a global retail event, and analyze its long-lasting effects on both consumers and businesses alike.
The term "Black Friday" first emerged in Philadelphia in the 1960s. At that time, the day after Thanksgiving was marked by massive traffic jams and overcrowded streets, causing stress for local police officers. The police, who had to deal with the chaos, began calling it "Black Friday" due to the high level of disruptions and accidents. While the day was a nightmare for law enforcement, retailers quickly saw an opportunity.
For businesses, the day after Thanksgiving presented an opportunity to attract customers with huge sales. The term "Black Friday" took on a more positive connotation, representing the day when businesses could transition from being "in the red" (in debt) to being "in the black" (making a profit) as they entered the lucrative holiday season.
By the 1980s, Black Friday had become a nationwide phenomenon. Retailers across the U.S. started to embrace the event, offering deep discounts and promotions to entice consumers. Shopping malls and department stores would open early, sometimes at 4 a.m. or earlier, to capture the attention of eager shoppers.
During this time, advertisers and marketers began to create even more hype around the event, framing Black Friday as a must-attend occasion for finding deals and marking the start of the holiday season. Retailers saw an opportunity to boost their sales, and shoppers eagerly followed suit.
In fact, Black Friday grew into the cornerstone of the retail industry, paving the way for other big shopping days like Cyber Monday. As the internet became a more dominant part of shopping habits, Black Friday expanded online, and retailers began offering sales both in-store and on the web.
Black Friday plays a critical role in the financial landscape of many retailers. For many businesses, the period between Thanksgiving and Christmas accounts for a significant portion of their annual revenue. According to the National Retail Federation (NRF), Black Friday marks the start of this crucial shopping season, and it's when many retailers move from losses ("in the red") to profits ("in the black").
In 2020, despite the challenges posed by the COVID-19 pandemic, U.S. consumers spent approximately $14.13 billion on Black Friday alone. With this in mind, Black Friday has become more than just a day for deep discounts—it’s a key performance indicator for the retail industry.
Retailers, especially big-box stores like Walmart and Target, invest heavily in creating irresistible deals to attract consumers. With discounted prices on everything from electronics to home goods, these sales help boost store traffic and sales volume.
While Black Friday began as an in-store shopping event, the rise of e-commerce has drastically changed how consumers engage with the day. Online shopping now plays an essential role in Black Friday's success. With more people shopping from the comfort of their homes, online retailers like Amazon have seen a massive surge in sales during the Black Friday weekend.
The trend towards online shopping is only expected to grow. According to recent statistics, U.S. shoppers spent $9.12 billion online on Black Friday in 2020, marking an increase from the previous years. In the same year, mobile devices became the preferred method of online shopping, with over 50% of all Black Friday transactions made via smartphones.
Although Black Friday started with negative connotations, over the years, it has evolved into a term that represents the immense shopping opportunity it has become. Retailers embraced the term because it marked the time of year when they would finally see their books in the black after months of lower sales.
As more stores participated in the tradition of offering steep discounts and promotions, the public’s perception shifted. Black Friday became associated with positive experiences, such as finding high-quality products at significantly reduced prices. Instead of conjuring images of chaos, it now represented opportunity and savings.
The shift from a negative term to a positive one was further solidified when retailers began advertising Black Friday sales months in advance. This built anticipation and excitement, and consumers started seeing Black Friday as the official start of the holiday shopping season.
In accounting, businesses record their losses in red ink and their profits in black ink. The phrase "in the black" is often used to describe a business that has turned a profit, and this is where Black Friday’s connection to the term began. When retailers experience high sales volumes on Black Friday, it’s a sign that they’re making the transition from a deficit to a profit.
For many retailers, Black Friday is crucial for helping them meet their yearly revenue targets. As a result, retailers often start planning their Black Friday strategies months in advance, organizing inventory, advertising, and staffing levels to ensure a successful event.
Black Friday began as a distinctly American event but has since spread across the globe. Many countries now recognize the day as a key shopping event, with retailers offering significant discounts to attract shoppers. Canada, the UK, and Australia are some of the countries that have embraced the Black Friday phenomenon.
In the UK, for example, retailers like Amazon UK, Currys, and Argos offer Black Friday deals, and while it’s not a public holiday, the sales have become increasingly popular. In Canada, Black Friday has become a major shopping day, with Canadian consumers spending billions during the weekend.
Black Friday’s international growth has made it a symbol of the retail industry's global expansion. Retailers, both in-store and online, offer deals that compete on a global scale. Companies like Amazon have capitalized on this international demand, offering global shipping options and tailoring their deals to local markets.
While Black Friday deals may look similar in countries around the world, there are also significant differences based on regional preferences and local customs. In the United States, Black Friday deals typically target consumer electronics, clothing, and toys, while in the UK, discounts often focus on home goods and electronics.
In countries like Japan, Black Friday is a newer phenomenon, but retailers have adopted it rapidly. Japanese retailers offer Black Friday deals on fashion, beauty products, and electronics, tailoring the discounts to the unique preferences of the Japanese market.
Despite these differences, the overarching theme of Black Friday remains the same: massive discounts and sales that drive holiday shopping.
One of the key drivers behind Black Friday’s success is the psychology of consumer behavior. Shoppers flock to stores and websites in search of significant discounts, often driven by the fear of missing out on a good deal. This phenomenon, known as FOMO (Fear of Missing Out), is amplified on Black Friday, where limited-time offers and doorbuster sales create urgency.
Studies have shown that consumers are more likely to purchase items on Black Friday because they perceive the deals as too good to pass up. Retailers know this and use it to their advantage by creating a sense of scarcity, often by advertising a limited number of products at extremely low prices.
The role of advertising in driving Black Friday sales cannot be overstated. Retailers start promoting Black Friday deals months in advance, using digital media, television, and print ads to build anticipation. These ads often highlight discounts of up to 70% or more, which lures consumers into stores and onto websites.
Retailers also use social media platforms to promote their Black Friday sales, leveraging the power of influencers and viral marketing to generate buzz. By creating a sense of exclusivity and excitement, retailers can drive consumer traffic and increase sales significantly.
For consumers, Black Friday can be an overwhelming experience with so many options and deals available. However, with the right planning, shoppers can maximize their savings. One of the most important things to remember is to create a budget before diving into the sales. Knowing what items you want to purchase and how much you are willing to spend can prevent impulse buys and unnecessary spending.
It’s also essential to compare prices across different retailers before making a purchase. While a deal may seem great in one store, it could be available for even less at another retailer.
While some consumers prefer the in-store experience of Black Friday, where they can physically see products and try them out, online shopping offers the convenience of shopping from home. For those who prefer the latter, many retailers offer exclusive online deals that may not be available in-store. Additionally, many online stores offer the ability to shop from the comfort of your home without dealing with long lines or overcrowded stores.
As shopping habits continue to shift, so too does Black Friday. In recent years, many retailers have begun offering deals earlier in the season, starting sales as early as October. This extended shopping window has led to a shift in the way people shop for Black Friday deals, as consumers no longer feel the need to wait until the official day.
There has also been a growing awareness of the environmental and ethical implications of Black Friday sales. As consumers become more mindful of their purchasing decisions, sustainable shopping practices are gaining traction. Some retailers are now offering "green" alternatives, focusing on environmentally friendly products or adopting more sustainable business practices.
Black Friday has evolved from a chaotic shopping day into one of the most anticipated retail events of the year. Its roots in American culture, combined with its international reach and impact on global commerce, ensure that Black Friday deals will continue to shape holiday shopping trends for years to come.
For retailers, it’s a crucial time to capture consumer attention and drive sales. For consumers, it’s an opportunity to score incredible deals, provided they shop smartly and strategically. Whether online or in-store, Black Friday remains a global phenomenon that holds a unique place in retail history.
