Black Friday: Origins, meaning and why it matters to businesses

Black Friday, the day after Thanksgiving in the US, has become synonymous with massive sales, busy stores and the start of the Christmas shopping season. It has turned into a key moment in the retail industry and a significant economic impact for businesses.

Origins in Philadelphia: The Chaotic Beginnings

The term “Black Friday” was coined in the 1950s by police officers in Philadelphia. It referred to the chaos that ensued the Friday after Thanksgiving, when the city was flooded with shoppers and football fans arriving for the annual Army-Navy game on Saturday. The traffic jams, crowded streets and booming retail sales made the day particularly challenging for law enforcement and local businesses, giving it a negative connotation. The “black” in the name symbolized the bleak experience of managing the chaos.

By the 1960s, the term spread beyond Philadelphia and was widely recognized as the busiest shopping day of the year.

Accounting terms: From loss to profit

In the 1980s, retailers worked to change the negative image of Black Friday. They linked it to accounting terms where “in the red” means losing money and “in the black” means making money. This made Black Friday known as the day when retailers went from loss to profit, showing financial success.

This new idea became popular with consumers and businesses alike, turning Black Friday from a chaotic day into a symbol of financial success and marking the start of the Christmas shopping season.

Black Friday expands beyond a single day

Over time, Black Friday expanded beyond a single day of in-store sales. The rise of online shopping and the mix of deals with Cyber ​​Monday has made it a multi-day or even week-long shopping event. Retailers offer deals well in advance of the official day, and in some cases, Black Friday sales extend into the weekend and beyond.

The event has also become a global phenomenon, with countries such as Canada, Great Britain, Brazil and India adopting the tradition.

The importance of Black Friday for businesses

For businesses, Black Friday is more than just a big sales day – it’s a key time to make money. Many retailers make a lot of money from the deep discounts offered, with sales making up a large portion of their annual earnings.

The benefits for businesses include:

-Deep discounts bring in millions of shoppers, leading to record sales.

-Retailers use Black Friday to clear out old inventory to make room for new items.

-Special offers attract new customers who may return later.

-Online shopping has made Black Friday a global event, with deals extending into Cyber ​​Monday and even beyond.