Black Friday, held the day after Thanksgiving on the fourth Thursday of November, has become a hallmark of the American holiday shopping season. Once confined to the United States, it has grown into a globally impactful event, influencing retail strategies and consumer behavior around the world. Marked by significant discounts and a lively atmosphere, Black Friday is now one of the largest shopping days of the year, drawing millions of shoppers both in-store and online. Many believe that the term “Black Friday” comes from the idea that businesses were “in the red” (operating at a loss) until the day after Thanksgiving, when substantial sales help them become profitable, or “in the black.”
Early Origins
The term “Black Friday” dates back to the 1800s. Initially, it referred to financial crises. A notable event was the market crash of September 24, 1869, when speculators Jay Gould and James Fisk tried to manipulate gold prices, leading to a massive economic fallout. The chaos left many investors in despair, associating the day with financial ruin. However, the modern understanding of Black Friday began to take shape in the 1950s. Philadelphia traffic cops used the term “Black Friday” to refer to the day after Thanksgiving, as they were required to work 12-hour shifts managing heavy traffic.
The influx of holiday shoppers, often coinciding with the annual Army-Navy football game, contributed to the chaos. The phrase “Black Friday” as a positive indicator of increased retail sales didn’t gain national popularity until the late 1980s when merchants began promoting the red-to-black profit story. It was then known as the day when stores began turning a profit for the year and emerged as the biggest shopping day in the United States.
Rebranding the Day
Recognizing the need to change the narrative around this busy shopping day, retailers began rebranding Black Friday. They emphasized that it was a day when businesses moved from being “in the red” (losing money) to “in the black” (making a profit). This shift in perception allowed them to promote the day as a family-friendly event, one that offered deals to kick off the holiday shopping season. Marketing strategies focused on enticing customers with blockbuster deals and limited-time offers, setting the stage for the shopping frenzy that would characterize future Black Fridays.
Initially, the name spread through word of mouth, but it gained significant traction when companies began incorporating it into their advertising campaigns. By the end of the 1980s, “Black Friday” had become widely recognized across the country and was adopted by most brands for their post-Thanksgiving sales. Retailers began opening their doors earlier to accommodate the growing crowds. This era marked the rise of “early bird” shopping, where consumers were encouraged to arrive early for the best deals. Major retailers like Walmart and Best Buy became prominent players, pushing the boundaries of promotional strategies.
Changing Trends in E-Commerce
As the 1990s progressed, the Internet began to change the landscape of retail, and by the 2000s, online shopping gained popularity. This shift allowed consumers to take advantage of online deals without braving the chaos of physical stores. The rise of technology also led to new marketing strategies. Retailers began to offer pre-Black Friday deals, allowing customers to start shopping earlier than ever. Black Friday transformed into a week-long event, with sales extending beyond a single day. Amazon, in particular, capitalized on this trend, introducing its promotions and driving competition among stores.
Black Friday’s Impressive Online Growth
The Black Friday shopping frenzy continues to grow in size and excitement each year, producing impressive statistics that highlight its importance in the retail industry. In 2023, Black Friday’s dominance in the digital space continued, with global online sales reaching an impressive $70.9 billion. The trend is clear: consumers are increasingly inclined to shop online, attracted by convenience and competitive online deals.
This preference was reflected in the fact that 68% of shoppers worldwide planned to take advantage of Black Friday deals online in 2023. This shift towards e-commerce was evident throughout the entire Thanksgiving weekend, with online retail sales rising by 6.3%, compared to just a 2.2% increase in in-store sales.
The Cultural Phenomenon
Black Friday has not only influenced retail strategies but has also become a social spectacle. Videos of shoppers engaging in fights over discounted items or camping outside stores for days have become a staple of news coverage. These incidents often overshadow the deals themselves, leading to discussions about consumerism and the societal pressures surrounding holiday spending.
Global Adoption
Notably, Black Friday is increasingly shifting away from being solely an American event and is now being adopted worldwide, including in India. At least 129 countries celebrate Black Friday, each with its version of the event. Canada, the UK, New Zealand, Italy, and Australia have embraced this shopping phenomenon, often tailoring it to fit their local markets. In Canada, for instance, Black Friday sales have become popular alongside their own Thanksgiving celebrations, while in the UK, retailers use the event to kick off the holiday shopping season. New Zealand and Australia also see significant participation from both consumers and retailers, with many offering substantial discounts across various sectors.
This global adoption reflects the increasing influence of American consumer culture and the rise of e-commerce, allowing shoppers from different countries to take part in the excitement of Black Friday deals. As a result, what began as a distinctly American tradition has evolved into a worldwide shopping event that transcends borders and cultures.
Conclusion
From its beginnings as a term linked to financial crises and chaos to its current status as a retail drive, Black Friday has undergone significant transformation. It reflects not just changes in consumer behavior and retail strategies, but also broader cultural shifts. Black Friday will continue to be a significant event, shaping the way we approach the holiday season. Happy holidays!
