November 29, 2024, is Black Friday. This shopping event occurs on the Friday following Thanksgiving, which is celebrated on the fourth Thursday in November in the United States. Black Friday traditionally marks the beginning of the Christmas shopping season and is known for significant sales, crowded stores, and the kickoff of holiday shopping.
The term “Black Friday” was coined by police officers in Philadelphia during the 1950s. It referred to the chaos that ensued on the Friday after Thanksgiving, as the city became flooded with shoppers and football fans arriving for the annual Army-Navy football game the following Saturday.
The resulting traffic jams, overcrowded streets, and booming retail sales created significant challenges for law enforcement and local businesses, giving the day a negative connotation. “black” symbolized the problematic experience of managing the chaos.
Many believe the term “Black Friday” has its roots in the colour black, which signifies “showing a profit” and indicates that there are no losses. In the 1980s, retailers worked to change the negative connotation associated with Black Friday. They linked it to accounting terminology: “in the red” means incurring losses, while “in the black” means making a profit. This rebranding helped position Black Friday as the day retailers transitioned from losses to profits, symbolizing economic success.
Additionally, Black Friday has evolved into a global phenomenon, with countries like Canada, the UK, Brazil, and India adopting the tradition.
Benefits for Businesses During Black Friday:
– Significant discounts attract millions of shoppers, resulting in record sales.
– Retailers use Black Friday to clear out old stock and make room for new items.
– Special deals draw in new customers, some of whom may return.
– With the rise of online shopping, Black Friday has evolved into a global event, with deals extending into Cyber Monday and beyond.
Black Friday also refers to a notable stock market crash on September 24, 1869, known as the Panic of 1869. On that day, financiers Jay Gould and James Fisk leveraged their connections with the Grant Administration to try to corner the gold market. They formed a group called the Gold Ring to manipulate the gold market and drive up the price of gold on the New York Gold Exchange.
When President Grant became aware of this manipulation, he instructed the Treasury to release an ample supply of gold, which halted the price surge and caused gold prices to drop by 18%. This event led to significant financial gains and losses for many individuals in a single day, including the president’s brother-in-law, Abel Corbin, who faced ruin.
Black Friday and other major sales events are designed to create a sense of urgency. They heavily leverage a phenomenon known as the fear of missing out, commonly referred to as FOMO. Retailers understand that shoppers often feel pressured to make purchases when they believe they might miss an opportunity. This tactic is known as scarcity marketing.
Cyber Monday is a marketing term for e-commerce transactions in the United States that occur on Mondays following Thanksgiving. This day marks the first workday after a long holiday weekend, during which online retailers offer significant discounts.
Customers eagerly anticipate Black Friday deals to enjoy substantial discounts, leading to a spike in retail activity. However, amidst the excitement of all these sales, remember that if you don’t want or need anything, you always have the option not to shop.
