The Evolution and History of Black Friday: An Essential Guide to the Holiday Sales Phenomenon

As the deluge of promotional emails in your inbox might suggest, the holiday shopping period is now underway, and Black Friday is rapidly approaching.

Though Black Friday has evolved from the chaotic, crowded in-store events of past decades, primarily due to an increased focus on online shopping—a shift hastened by the COVID-19 pandemic—it continues to be a major draw for consumers. The National Retail Federation estimates that about 182 million shoppers will participate in-store and online over the Thanksgiving weekend, with Black Friday alone accounting for 130.7 million of these shoppers.

However, consumers’ concerns about inflation, albeit reduced from last year, remain a significant factor that might result in more restrained spending. The elongation of Black Friday deals and the growing prominence of other shopping days like Cyber Monday are also reshaping holiday expenditure patterns.

Here’s a detailed look at Black Friday’s origins and its current state in 2023.

Black Friday 2023: Date and Background

Black Friday is observed on the Friday following Thanksgiving. In 2023, this falls on November 24.

The term “Black Friday” has been around for generations, initially not linked to post-Thanksgiving shopping. It was once used to describe the financial crisis caused by the gold market crash in September 1869.

Its association with post-Thanksgiving shopping dates back to Philadelphia in the mid-20th century, when the city was overrun by large crowds during the annual Army-Navy football game and seasonal sales. According to a 1975 account by a Gimbels department store manager, the term was used by local bus and cab drivers, overwhelmed by the congestion.

The earliest reference to “Black Friday” in the context of shopping can be traced back to a New York trade publication in 1951, which mentioned workers taking sick leave the day after Thanksgiving to extend their holiday weekend.

From the 1980s, retailers began to assert that Black Friday marked the point where they started turning a profit, or moving from ‘the red’ into ‘the black.’ However, this interpretation is debated since many retailers achieve profitability at various times throughout the year.

The Transformation of Black Friday

Originally, Black Friday was notorious for overcrowded stores and long queues of eager shoppers waiting for deep discounts. However, the advent of online shopping, further propelled by the pandemic, has eased the process, allowing most holiday shopping to be done from home.

In 2003, e-commerce represented a mere 1.7% of total retail sales in Q4, according to the U.S. Commerce Department. By contrast, the 2022 holiday season saw e-commerce make up about 16.3% of all retail sales.

Significantly, the cost of high-demand products like TVs has decreased over the years, reducing the allure of in-store Black Friday discounts. Two decades ago, a flatscreen TV might have cost several thousand dollars, making a Black Friday discount substantial. Now, similar items can be found for far less, diminishing the savings’ impact.

The Expansion of Black Friday and Emergence of Cyber Monday

Black Friday sales now extend far beyond a single day, with promotions starting as early as before Halloween. This expansion is partly due to competitive pressures among retailers and the need to manage shipping logistics, particularly since the onset of the pandemic.

Cyber Monday, first officially recognized in 2005 by the National Retail Federation, has become a significant event in the e-commerce era. In 2022, a record $11.3 billion was spent on Cyber Monday, making it the largest online shopping day of the year.

While Black Friday remains an important sales event, both online and in-store, it’s undergoing a gradual transformation. The social aspect and immediate satisfaction of in-store shopping continue to appeal to many, ensuring the persistence of Black Friday as a retail tradition, albeit in a modified form.

Frequently Asked Questions (FAQs) about Black Friday Evolution

More about Black Friday Evolution

• History of Black Friday
• Evolution of Holiday Shopping
• Black Friday 2023: Trends and Predictions
• The Rise of Online Shopping
• Cyber Monday’s Growing Impact