Black Friday

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21 Aug, 2024

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Black Friday is a day observed following the Thanksgiving celebration in the United States when retailers offer special deals and huge discounts on products and services since most people have a holiday on this day. Moreover, it marks the onset of the Christmas shopping season.

On this day, sellers record the highest profits since people flood the local markets and engage in unrestricted and impulsive shopping for electronics, furniture, toys, fashion and beauty products, etc. Hence, economists consider it a critical indicator of gauging an average American's confidence in the market and the prevailing economic condition across the U.S.

Black Friday Meaning

Black Friday is a widely recognized shopping festival held the day after the Thanksgiving celebration in the United States when retail stores (generally physical outlets) offer steal deals and best-ever discounts.
It is also recognized as the beginning of the Christmas shopping season.
Countries like Canada, Mexico, the U.K., Italy, India, Germany, and France also witness this day.
The economists interpret the U.S. economic conditions and the average American's confidence in the market by gauging the consumers' discretionary spending during this day.

Black Friday Explained

Black Friday is an unofficial commencement of the holiday shopping season and is renowned for presenting substantial discounts and special offers at brick-and-mortar retail stores and online shops. Individuals seize this opportunity to initiate holiday shopping and get attractive product deals for themselves. Further, it inspires the buyers to shop locally since such sales are primarily available at physical stores.

Traditionally, the sale was live for only 24 hours. Also, some sellers opened the stores early morning to cater to the early-hour shoppers. But, nowadays, shopkeepers make the deals live on Thanksgiving Day and sometimes even before that.

Although the concept originated in the U.S., nations like the U.K., Australia, Canada, Norway, Brazil, Mexico, India, Italy, Sweden, New Zealand, Japan, and many others have adopted the tradition. Despite its immense popularity and craze among shoppers and sellers, some nations have yet to embrace the concept: Afghanistan, North Korea, Iran, and Venezuela.

However, the overwhelmed shoppers and crowded markets during the Black Friday sale increase the chances of accidents, shoplifting, traffic jam, stampede, etc. Moreover, the stores have long queues and limited stocks, creating customer stress and chaos. Also, the buyers get allured with the Black Friday deals and often end up overspending and buying unnecessary stuff. The other drawbacks are excessive consumerism and the impact on retail workers who may endure long working hours and stressful conditions during this period.

History

Black Friday was first coined to denote the biggest-ever U.S. gold market crash on Friday, September 24, 1869. However, it has no relevance to the shopping festival. In the 1950s, the term was used by the traffic police department to address the havoc ironically caused due to heavy traffic in Philadelphia on a Friday that followed the Thanksgiving celebration. It was the day when the shopaholic crowd flooding the retail stores of Philadelphia caused traffic jams throughout the day. The suburban tourist crowd who visited the city to observe the Army-Navy football game added to the chaos.

Earlier, the name was opposed by the merchants and sellers, considering it a negative resemblance. They tried to rephrase and promote the shopping festival as 'Big Friday,' but in vain. In 1985, U.S. retailers adopted the phrase to signify a profitable day with tremendous sales. With time, it has evolved into the occasion of a significant deal, with retailers offering substantial discounts and promotions to attract shoppers. This trend has also extended to other countries worldwide by 2013.

While it has been associated with large crowds and intense shopping experiences, the prominence of online shopping has grown over the years. Consequently, many retailers now offer online Black Friday deals to cater to shoppers who prefer to avoid the in-store rush.

Examples

During the Black Friday sale, you can find massive discounts on various products, including electronics, fashion, home appliances, toys, beauty products, furniture, travel deals, online services in the Walmart Black Friday, best buy black Friday deals, and many more.

Let us look at some hypothetical and real-world examples of Black Friday:

Example #1

Let us take the example of Bloomville.

Suppose Black Friday is a highly anticipated event in this city. Local retailers, big and small, participate in this shopping extravaganza by offering exclusive discounts on a wide range of products.

The central shopping district is abuzz with excited shoppers hunting for electronics, fashion, toys, and more. At the same time, digital platforms present enticing offers, making customers browse and shop conveniently from the comfort of their homes.

From sunrise to sundown, Bloomville's Black Friday is a thrilling experience, bringing together residents and visitors for a day of shopping, fun, and community celebration.

Example #2

A record-breaking Black Friday event happened in 2023. U.S. shoppers spent a remarkable $9.12 billion online, embracing steep discounts despite high inflation. Online spending rose 2.3%, with consumers waiting for deals on this traditionally significant shopping day. Mobile shopping dominated, accounting for 48% of all digital sales.

Adobe Analytics accurately predicted a modest 1% rise in sales and expected Cyber Monday to drive $11.2 billion in online spending. While in-store shopping was expected to rebound after the pandemic, sporadic rain affected foot traffic. Black Friday highlights the enduring appeal of discounts and online convenience in challenging economic times.

Importance

Black Friday is a boon for buyers with limited income or the ones who wait all year long to buy products and services at a bargain. Its significance for consumers, retailers, and economists can be understood through the following points:

Economic Impact: This major shopping event marks the beginning of the holiday season and drives substantial consumer spending, contributing significantly to the economy. Retailers offer attractive discounts, and consumers eagerly participate in the shopping frenzy.
Best Deals and Discounts: It allows consumers to find products at discounted prices, making it an ideal time for purchasing gifts and personal items.
Cultural Tradition: Over time, it has become a cultural tradition for many people, who eagerly anticipate the excitement of finding the best deals at this time.
Business Profitability: For retailers, it is a critical period to boost sales, clear out inventory, and attract new customers with enticing deals. Overall, it's the time of the year when they make most of their sales and profit.
Upsurges Online Sales: With the growth of e-commerce, it has extended beyond brick-and-mortar stores to online retailers, allowing them to attract online shoppers and up-size sales volume.
Opportunity for Physical Stores: In the era of massive competition from online sellers, brick-and-mortar stores can gain visibility through such events.

Black Friday vs Cyber Monday

Black Friday and Cyber Monday are the most awaited shopping events offering significant discounts to consumers. However, they are dissimilar in the following ways:

Basis	Black Friday	Cyber Monday
Definition	It takes place the day after Thanksgiving in the United States and is known for its most significant retail sales and deals.	Cyber Monday is the very following Monday that comes after the Thanksgiving holiday. It is primarily an online sale where retailers offer attractive deals on company and e-commerce websites.
Type of Sellers	Mostly retail brick-and-mortar stores and some online stores	Online retail stores; e-commerce websites like Best Buy, Walmart, Amazon, and eBay; and resellers
Characterized by	Crowded stores, long lines, limited stocks	Massive website traffic, products rapidly being out of stock
Suitable For	It suits old-school shoppers, homemakers, and local buyers who await sales and discounts at nearby stores for festive shopping and household stuff.	It is suitable for online buyers looking for great discounts from the comfort of their homes.
Deals on	Electronics, toys, lifestyle products, home appliances, and furniture	It has deals on gift items, tech products, and secondhand items.
Top Discounts on	Durable products and big-ticket items	Gift items
Payment	Buyers usually pay in cash or through credit cards, debit cards, etc.	Buyers mostly pay through credit cards, debit cards, EMI, or other online transfer modes of payment.

Both these shopping events are big days for consumers to save money on various products. Some retailers may extend their deals throughout the weekend, creating a shopping bonanza for those looking to score great deals.

Frequently Asked Questions (FAQs)

1. Are Black Friday deals online?

Nowadays, most of the physical stores have an online presence. Hence the retailers often make the Black Friday sale live right from Thanksgiving on their websites and other e-marketplaces to grab the shoppers' attention. Also, the e-commerce sites like Target, eBay, Macy's, JCPenney, Etsy, and Best Buy launched online Black Friday sales.

2. Does Apple have Black Friday sales?

Apple's Black Friday deals don't offer discounts on its products. However, the company provides Apple Gift Cards on selected Apple and Beats products to be redeemed on the next purchase. However, one can find steal deals on iPhones and other Apple products on Amazon and Walmart's Black Friday sales.

3. When do Black Friday ads come out?

Since the sale usually starts in November, businesses promote it in late October. The initial ads provide a teaser of the deals and discounts, while rigorous advertisements revealing all the offers can be experienced during Black Friday week.

4. Is Black Friday a bank holiday?

It is not a declared Federal holiday; the banks are open that day.