The History of Black Friday

It’s that time of year again. Retailers all over the world are ramping up for Black Friday, Small Business Saturday, and Cyber Monday. But where did this retail tradition originate, and how did it evolve from a one-day event tied to an American holiday to a multi-day, if not multi-week global shopping extravaganza?

In this three-part series, we’ll answer these questions and look at how retailers can maximize Black Friday. We'll explore effective strategies companies use to boost revenue through sales and special events, while maintaining brand identity. Most importantly, we’ll share practical tips for meeting growing customer demand and managing the logistical challenges of peak shopping days.

To kick things off, let’s dive into the origins of Black Friday and how it became such a key date on the retail calendar.

The origin of Black Friday

Before “Black Friday” got its name, the Friday after Thanksgiving was already becoming a major shopping day. In the 1920s, events like the Macy’s Thanksgiving Day Parade (launched in 1924) helped link holiday celebrations with shopping, encouraging people to kick off their Christmas shopping right after Thanksgiving.

But it wasn’t until the 1960s in Philadelphia that the day became known as "Black Friday." Police officers coined the term to describe the chaos and heavy traffic caused by tourists and shoppers flooding the city the day after Thanksgiving.

For police, “Black” reflected the challenges of managing these disruptive crowds, which made their jobs harder during an already busy time.

Later, in the 1980s, retailers gave the term a positive spin, linking “Black Friday” to profitability. In accounting, businesses used to record profits in black ink and losses in red, so “Black Friday” became associated with the day many stores "go into the black" (turn a profit) for the year. This reinterpretation helped shift the term from a reference to crowd-control problems to a celebration of shopping and revenue. Sounds like a very clever marketing trick, doesn’t it?

Black Friday’s connection to Thanksgiving

Thanksgiving itself has always been about coming together and celebrating gratitude, but retailers saw an opportunity to turn the long holiday weekend into a shopping event.

Over time, Black Friday evolved into a day for discounts and doorbuster deals, attracting bargain hunters and making it an integral part of post - Thanksgiving plans for many families, right alongside leftover turkey and pumpkin pie.

The popularity of Black Friday as a shopping tradition has pushed retailers to open doors earlier and earlier, to the point where some businesses start Black Friday on Thursday night!

Today, it's common to see eager shoppers lining up right after Thanksgiving dinner, ready to seize deals as soon as stores open.

Serving up a generous portion of revenue for retailers

Fast forward to 2023. Last year was a record-breaker for Black Friday shopping, both in-store and online. According to recent data from the National Retail Federation,

• Over 76 million Americans shopped in-stores on Black Friday. Over 90 million shopped online.

• Global black Friday sales volume totalled $70.9 billion.

• Web traffic spikes dramatically, nearly doubling compared to average October days, as consumers search for the best deals.

(Source: NRF’s 2023 Thanksgiving consumer survey)

Takeaways for retailers

The history of Black Friday demonstrates the power of having an occasion for a sale and using the calendar to your advantage. While most retailers already plan discounts and promotions, here are a few ideas to help you get the most out of Black Friday’s momentum:

• Create a distinctive customer experience

Black Friday is of course focused on big discounts. However, you can truly set yourself apart by creating a memorable overall shopping experience. Think beyond just pricing—consider adding special perks like exclusive product bundles, limited-edition items, or early access for loyal customers. And let’s not forget servicing your customers for the sake of bringing a smile on their face, not just putting black ink on the P&L ledger. This can elevate your brand and foster loyalty without solely relying on discounts.

P.s Stay tuned for the next post

• Leverage data-driven insights for timing and inventory

With the high volume of traffic and demand on Black Friday, consider using your data analytics from past sales to fine-tune product availability and timing for peak customer interest. By strategically timing promotions and spotlighting items with proven appeal, you can increase sales while managing supply more effectively.

• Stay agile

Black Friday trends evolve fast. This year’s high-demand items could be different from last year’s. Stay flexible and monitor live sales data closely to adjust promotions, stock, and staffing as the day progresses. Quick adaptability can make the difference between meeting and exceeding sales targets.

Up next, Black Friday goes online…

In our next post, we will look at how Black Friday evolved to keep up with the eCommerce age and how backlash against national chains and the consumerism of Black Friday spawned Small Business Saturday.