The holiday shopping period is gearing up for its peak with Black Friday, which marks the start of the post-Thanksgiving retail frenzy later this week.
This annual sale event has evolved considerably, moving away from the chaotic midnight crowds and doorbuster offers of the past, primarily due to the rise of online shopping and shifts in consumer behavior stemming from the COVID-19 pandemic.
To attract hesitant buyers, retailers have taken to inundating customers with advertisements and early promotions in the weeks leading up to Black Friday.
Even so, millions of shoppers across the U.S. are anticipated to partake in the retail excitement on this day.
According to projections by the National Retail Federation and Prosper Insights & Analytics, about 183.4 million individuals are expected to shop either in stores or online between Thanksgiving and Cyber Monday, with an estimated 131.7 million choosing to shop specifically on Black Friday itself.
The landscape of holiday shopping is also shifting due to the increasing popularity of other shopping events, notably Cyber Monday, alongside the earlier rollouts of Black Friday-like discounts.
Below are some key details about the origins and current status of Black Friday as it approaches in 2024.
When will Black Friday take place in 2024?
This year, Black Friday will occur on November 29, the day after Thanksgiving, which is traditionally when this significant shopping event is held.
The inception of the term “Black Friday” dates back multiple generations but was not initially connected with the retail discount frenzy we are familiar with today.
For example, the term was notably used to refer to the gold market crash in September 1869.
However, the phrase as it pertains to the shopping day post-Thanksgiving is primarily traced back to Philadelphia during the mid-20th century.
This was a time when large crowds had to be managed due to the annual Army-Navy football game and the influx of holiday shoppers.
A Gimbels department store sales manager described the chaos in 1975, indicating that local transportation workers called it “Black Friday” due to the challenges they faced with crowds.
Earlier references from the 1950s and 1960s further support this link.
Additionally, a marketing professor from the University of Maryland noted a 1951 reference to many workers calling in sick the day after Thanksgiving for an extended holiday weekend.
Since the 1980s, major retailers have claimed that Black Friday signifies their transition from operating at a loss to profitability because of holiday spending.
Nevertheless, experts contend that this notion should be viewed cautiously since many businesses have periods of profitability throughout the year.
The face of Black Friday has changed dramatically in recent years, as it was once characterized by massive crowds and significant lines of consumers eager to take advantage of substantial discounts.
However, the advancement of online shopping has enabled consumers to fulfill most of their holiday shopping needs digitally.
Although foot traffic in malls has seen a recovery since the pandemic, e-commerce remains a strong component of the retail landscape.
Historical data indicates that in November 2003, online sales represented just 1.7% of total retail sales for the fourth quarter, whereas this figure surged to approximately 17.1% in the last holiday season.
This rise relates significantly to changes in consumer purchasing behavior.
Additionally, items that once attracted shoppers in-store, like TVs, have become considerably cheaper over the years, reducing the need for shoppers to brave the crowds for bargains.
Researchers observe that the average price of a television has dropped by 75% since 2014.
The National Retail Federation and Prosper Insights predict that a majority of customers (65%) still prefer to shop in-person for Black Friday this year, despite the digital shift.
The concept of “Black Friday month” has emerged, as sales now extend far beyond a single day, with promotional emails starting before Halloween.
Experts suggest that the perception of Black Friday has transformed into a crucial point in the holiday shopping season rather than just its kickoff.
Retailers are prompted to launch early promotions to remain competitive and efficiently manage shipping logistics, especially this year with only five days separating Thanksgiving and Christmas.
Therefore, there is little expectation of significant strain on shipping services due to anticipated customer behavior.
Early pre-Thanksgiving sales leverage the recognizability of Black Friday’s branding, which is synonymous with big discounts.
In the days following Black Friday, other shopping days such as Small Business Saturday and Cyber Monday emerge, with the latter officially recognized by the National Retail Federation in 2005.
During Cyber Monday 2023, consumers spent a record $12.4 billion, with peak sales totaling $15.7 million per minute.
Meanwhile, on Black Friday, an impressive $9.8 billion was spent online.
Despite the likelihood of online shopping dominating, there remains a significant number of consumers who enjoy physical shopping experiences, ensuring that in-person shopping will continue to have relevance.
As much as the importance of Black Friday may gradually decline over time, it still serves as a means for people to connect, preserving its significance for both consumers and retailers.
