Ever wonder how the Friday after Thanksgiving became the biggest shopping day of the year?
In this post we’ll take you on a fun trip through time to find out.
From its surprising start in the late 1800s to its growth into a global phenomenon, we’ll tell the real stories, debunk the myths and the crazy twists that turned a regular Friday into black friday weekend and a holiday shopping staple.
Read on to find out how Black Friday became what it is today!
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Black Friday History
Pre-20th Century: Post-Thanksgiving Sales & The Slow Shift to a Shopping Day
Shopping after Thanksgiving goes back to the late 1800s.
As early as 1885, the Macy’s Thanksgiving Day Parade (which didn’t start until 1924) marked the beginning of the Christmas season.
Retailers noticed that the day after Thanksgiving was a popular time for people to start their holiday shopping and sales went up during that period.
By the early 20th century, department stores started to cash in on this trend by advertising post-Thanksgiving sales.
According to the National Retail Federation (NRF), the holiday season can account for up to 20% of a retailer’s annual sales, so this is a big deal for the retail industry.
The Philadelphia Connection: Traffic, Crowds & The Police Perspective (1950s & 1960s)
The term “Black Friday” was coined in Philadelphia in the 1950s and 1960s.
Police officers called it that because of the gridlock massive traffic jams and overcrowding on the day after Thanksgiving.
The city would be flooded with suburban shoppers and tourists who came for the annual Army-Navy football game on the Saturday after Thanksgiving.
This brought an increase in shoplifting and other crimes and police had to work longer shifts to deal with the crowds.
An article in the American Philatelist in 1966 mentioned the use of “Black Friday” in Philadelphia to describe the shopping day2.
The Meaning Shift: From Chaos to Profit
Retailers didn’t like the negative connotations of “Black Friday.”
To change the public’s perception, they came up with an alternative explanation: Black Friday was the day when retailers went from being in the red to being in the black.
In accounting, red ink means a loss and black ink means a profit.
This new spin helped to redefine Black Friday as a good thing for both retailers and consumers.
By the 1980s the term had gone national and retailers started to own Black Friday as part of the holiday sales season.
Who Coined Black Friday?: The Mystery Behind Its First Use
While we don’t know who exactly came up with the term, evidence points to Philadelphia police officers in the 1950s.
The earliest written record of “Black Friday” in this context was in a 1961 PR newsletter trying to change the name to “Big Friday” but it didn’t stick.
Black Friday Becomes a Shopping Phenomenon
1980s & 1990s: Retailers Start to Own Black Friday as the Beginning of the Holiday Season
In the 1980s and 1990s retailers started to own Black Friday as the first official holiday and unofficial start of the Christmas season.
They offered big Black Friday sales to attract holiday shoppers, with doorbusters and extended hours.
According to the NRF, Black Friday became the busiest shopping day of the year in 2003 and has been ever since.
In 1993 holiday season retail sales were around $375 billion, a big deal for the industry.
2000s & Beyond: The Internet, Cyber Monday and Global Expansion
The internet changed everything in the 2000s. In 2005 the National Retail Federation’s Shop.org division came up with the term “Cyber Monday” to describe the online sales surge the Monday after Thanksgiving.
That year online sales on Cyber Monday were $484 million.
By 2020 online sales on Cyber Monday reached a record $10.8 billion, the biggest online shopping day in U.S. history.
E-commerce has changed everything for Black Friday and the holiday season.
Black Friday went global during this time.
Countries like Canada, the UK, South Africa and Australia started to adopt Black Friday sales, adapting the event to their own holiday seasons and consumer habits.
For example in the UK, total online retail sales on Black Friday were £8.57 billion in 2020.
Black Friday in the Digital Age
Black Friday vs Brick-and-Mortar
E-commerce has changed everything for Black Friday shopping.
In 2020 online sales on Black Friday were $9 billion in the U.S., a 21.6% increase from 2019.
This is because consumers are preferring online over in-store.
While online sales are up, brick-and-mortar retail stores do still matter.
But foot traffic on Black Friday is declining. In 2019 in-store visits were down 6.2% from the previous year, according to ShopperTrak.
The Pandemic Effect: Online Shopping Trends Accelerated
The COVID-19 pandemic in 2020 accelerated everything. With health concerns and lockdowns in place many consumers turned to online retailers for their holiday shopping.
According to the NRF, online and other non-store sales were up 23.9% in November and December 2020 vs. 20191.
Stores adapted by offering curbside pickup and beefing up their online presence to meet the digital demand.
The pandemic showed retailers how important e-commerce is during the holiday season.
Early Deals & Extended Promotions: New Strategies and the New Timeline
Retailers are launching Black Friday deals a week earlier to spread out the season and manage inventory and logistics better.
In 2020 major retailers like Amazon and Walmart started offering holiday deals in October.
This has created a “longer holiday shopping season,” with consumers starting their holiday shopping weeks before Thanksgiving.
According to a Deloitte survey in 2020, 38% of consumers planned to start their holiday shopping by the end of October.
Black Friday Worldwide
Black Friday in Canada: History and Culture
In Canada Black Friday has grown in popularity over the past 10 years. Canadian retailers introduced Black Friday to stop consumers from shopping in the US.
In 2019 Canadian Black Friday sales were up 4.2% from the previous year, according to Statistics Canada.
Black Friday is now one of the busiest shopping days in Canada, along with Boxing Day on December 26.
Black Friday in South Africa: Adoption and Adaptation
South Africa has adopted Black Friday in recent years and consumer participation is growing big time.
In 2019 BankservAfrica reported that transaction volumes on Black Friday were up 36% from 2018.
Retailers in South Africa offer big discounts on many products so Black Friday is a big deal in the retail calendar.
Consumer behaviour is changing and global retail trends are having an impact.
Black Friday in Australia: New Kid on the Block
Black Friday is new to Australia but growing fast.
In 2019 the Australian Retailers Association reported that Australians spent over AUD 2.9 billion during the Black Friday and Cyber Monday period, up from previous years.
Retailers in Australia are getting in on the Black Friday action to ride the holiday season which used to be all about post-Christmas Boxing Day sales.
Black Friday Effects
On Retailers
The History of Black Friday Sales: From Profit Boost to Season Driver
Black Friday is a make or break period for retailers to make profits and drive up yearly sales up.
According to the NRF holiday sales in November and December 2020 in the US were $789.4 billion, above forecast and it’s a big deal.
Retailers use Black Friday to get customers with price and promotions, often see a big chunk of their annual sales during this period.
For some retailers holiday sales are 30% of their annual revenue.
Advertising and Marketing: How Retailers Use Black Friday
Retailers spend big on advertising and marketing for Black Friday.
In 2019 US retailers spent around $6.1 billion on holiday season advertising according to Kantar Media.
Email marketing, social media campaigns and exclusive online sales to get holiday shoppers.
Doorbuster deals and limited time offers create scarcity and get consumers to buy over the Thanksgiving weekend.
The Rise of Online Black Friday Shopping: E-commerce’s role in Black Friday
E-commerce has changed Black Friday, giving consumers easy access to deals.
In 2020 mobile devices accounted for 40% of online sales on Black Friday according to Adobe Analytics.
Retailers have optimised their websites and apps to make the online shopping experience better, with features like personalisation and one click checkout.
Online sales has made Black Friday more accessible to everyone.
Society & Consumers
While Black Friday is about savings it also has negative impacts on society and consumers.
Consumerism & Overconsumption: Environmental & Ethical Issues
Black Friday perpetuates consumerism and overconsumption.
The need to buy more means more waste and environmental damage.
According to the Environmental Protection Agency (EPA) Americans generated 292.4 million tons of municipal solid waste in 2018 with a big spike during the holiday season.
Environmental groups urge consumers to consider the environmental impact of their purchases and practice sustainable shopping.
Worker Exploitation: The Human Cost
Retail workers are forced to work long hours and holidays during Black Friday.
According to a 2019 EPI survey retail workers earn a median hourly wage of $19.33, so concerns about fair pay for extra work.
Labor advocates want better working conditions and wages for retail workers and to balance consumer demand with workers rights.
Safety Issues: Violence & Overcrowding
Black Friday has seen violence and injuries due to overcrowding.
Since 2006 there have been 17 deaths and 125 injuries related to Black Friday shopping according to Black Friday Death Count.
Retailers have implemented measures like controlled store entry and extra security at physical stores to prevent incidents and make shopping safe.
Why Black Friday is Bad: Arguments & Counterarguments
Critics say Black Friday promotes bad consumer behavior and widens the social gap.
The materialism overshadows the Thanksgiving spirit.
But supporters say Black Friday brings economic benefits, consumers get to buy discounted products and it boosts the economy through increased spending.
Black Friday Facts
Black Friday and Slavery: Busting the Myth
A myth claims Black Friday originated from the sale of slaves on the day after Thanksgiving.
This has been debunked by historians and has no basis in fact.
The term Black Friday related to shopping emerged in the 1950s in Philadelphia and has nothing to do with slavery.
We should use historical facts to understand the origins of the event and not spread misinformation.
Black Friday 1929 & The Great Depression: Historical Background and Impact
Another myth links Black Friday to the 1929 stock market crash, known as Black Tuesday and the Great Depression.
While the 1929 crash did affect the US economy it has nothing to do with the Black Friday shopping event.
The shopping related use of Black Friday developed in the mid 20th century independent of earlier financial crises.
Why Not White Day?: Alternative Names & What They Mean
Proposals to change the name of Black Friday ignore the fact that “black” in accounting means profit and “red” means loss.
The color references have nothing to do with race or ethnicity.
Changing the name would create confusion and take away from the historical and economic context of the event.
Other Black Friday Myths
While the true origins of Black Friday are in post-Thanksgiving shopping and financial terms, several myths have been circulating for years.
These myths have muddied the real history of this shopping holiday.
Let’s get into it.
Myth 1: Retailers Invented the Term to Mean Profitability
Another common myth is that retailers created the term Black Friday to mean the day when they start making a profit, going from being “in the red” to “in the black”.
While many retailers do see increased profits during the holiday season, they did not invent the term for that reason.
The accounting practice of using black ink to mean profit does exist but the term Black Friday was not coined by the retail industry to mean financial success.
In fact as we mentioned earlier the term was first used by Philadelphia police to describe the traffic jams and crowds on the day after Thanksgiving.
It wasn’t until later that retailers adopted the term and tried to rebrand it as a positive concept related to profitability.
Myth 2: Black Friday was a Government Plan to Boost the Economy
Some say the US government created Black Friday as an economic stimulus to get consumers to spend and pull the country out of recessions.
There is no proof of this. While government policies can impact economic activity there was no official decree or plan to make Black Friday a national shopping day.
It evolved from consumer behavior and retail marketing.
Myth 3: Employees Called in Sick
A fun but false story is that the term Black Friday came from employees calling in sick the day after Thanksgiving to get a 4 day weekend and leave their employers short staffed.
While some people may take more time off during this period there is no historical evidence to support this practice.
The phrase was mainly associated with the chaos and congestion in Philadelphia in the 1950s and 1960s.
Myth 4: Black Friday is the Busiest Day Because Stores are Closed for the Rest of the Holidays
Some think Black Friday became the busiest shopping day of the year because stores would be closed for the rest of the holiday season and people would shop heavily that day. Not true.
Stores are open throughout the holiday season and often extend their hours for shoppers.
The surge on Black Friday is due to limited time offers and promotions not store closures.
Black Friday Future
Predictions and Trends
Black Friday will continue to change with technology and consumer behavior.
E-commerce Growth
Ecommerce will play a bigger role. eMarketer says US online sales will hit $1 trillion by 2024.
Retailers will continue to invest in digital to meet consumer demand for convenience and accessibility.
Changing Consumer Attitudes Towards Consumerism & Sustainability
Consumers are getting more conscious of sustainability and ethics.
A 2020 Accenture survey found 60% of consumers are making more environmentally friendly, sustainable or ethical purchases since the pandemic started.
Retailers may offer eco friendly products and transparent supply chains to match consumer values during the holiday season.
Black Friday Shopping Tips
Tips for Surviving the Sales & Staying Safe
➥ Plan Ahead: Research deals and make a list of what you want. BlackFriday.com aggregates ads from many retailers.
➥ Set a Budget: Set spending limits so you don’t overspend.
➥ Shop Online: Take advantage of online sales to avoid the crowds and compare prices.
➥ Use Trusted Retailers: Shop on reputable sites to reduce the chance of scams.
➥ Check Return Policy: Know the return and exchange policy before you buy.
➥ Shop Local: Support small business on Small Business Saturday.
➥ Be Safe: If shopping in-store follow health guidelines and be aware of your surroundings.
Conclusion
Black Friday has come a long way since Thanksgiving.
From Philly streets to a global shopping day its history is as wild as the deals.
Now you know the truth behind Black Friday you can shop with knowledge.
Happy shopping and may you find the best deals!
