Why Is It Called Black Friday?

Source: DHgate, Tag: Holiday Decor

Why is the biggest shopping event of the year actually called Black Friday? Find out the origin of this annual shopping event.

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The Significance of Black Friday
With people spending rather hefty sums of money on this notoriously busy shopping day, the sales chalked up on Black Friday are often thought of as a litmus test for the overall economic condition of the country and a way for economists to measure the confidence of the average American when it comes to discretionary spending. Those who share the Keynesian assumption that spending drives economic activity view lower sales figures as a harbinger of slower growth.

Some investors and analysts look at Black Friday numbers as a way to gauge the overall health of the entire retail industry. Others scoff at the notion that the biggest shopping event of the year has any real fourth-quarter predictability for the stock markets as a whole. Instead, they suggest that it only causes very short-term gains or losses.
However, in general, the stock market can be affected by having extra days off for Thanksgiving or Christmas. It tends to see increased trading activity and higher returns the day before a holiday or a long weekend, a phenomenon known as the holiday effect or the weekend effect. Many traders look to capitalize on these seasonal bumps.
Myths about the biggest shopping event of the year
There are a couple of myths about how the term “Black Friday” got started. One is that Black Friday is the date where many major retailers finally see a profit for the year. That’s sometimes called being “in the black” (instead of “in the red”) due to all of the holiday shopping that starts on that day.
Another myth claims Black Friday was created by 19th-century Southern slaveowners. The myth claims the slaveowners could reportedly buy slaves on the Friday after Thanksgiving at a discount. Some people have actually used this myth as an excuse to boycott shopping on that day. Thankfully, this explanation was disproved.
When is Black Friday 2021?
Black Friday is always the Friday after Thanksgiving. This year, the biggest shopping event of the year falls on November 26. However, shoppers can expect deals to start popping up in the weeks leading up to the big day.
Amazon, as usual, is one of the retailers leading the charge. Its new Epic Deals promotion includes noteworthy discounts on everything from tech to home goods, with new deals dropping every day. It's only October, and we're already seeing some of the best prices of the year on items like AirPods and Beats earbuds.
What is Black Friday?
On the biggest shopping event of the year, retail prices heavily decrease for 24 hours in an attempt to get people to splash the cash in the run-up to Christmas. Although in recent years, particularly online, the biggest shopping event of the year has turned into a two-week shopping event with retailers competing to start their sales the earliest in the hope of luring in customers first.
In the States, customers often queue for hours, even days to get their hands on the best bargains. Many stores have yet to make an official announcement about the biggest shopping event of the year and if they will open on Thanksgiving night. Several others such as Walmart, Sam's Club, Best Buy, and JCPenney will be closed for the holiday due to the pandemic. Instead, many deals will be posted to their sites to avoid long lines overnight and mass crowds.
Why it is called Black Friday?
Answer - Closest reason as to why it is known as Black Friday is given in Wikipedia - "Many retailers report some of their highest profits on Black Friday. The black portion of the name, "Black Friday" relates to businesses recording their losses in red ink and gains in black. This tradition lives on in modern accounting software, hence the name.". The term Black Friday got traction with the Internet. Deals websites started to highlight "Black Friday sales" from 2003 and the retailers picked it up. Essentially, Black Friday is an Internet term. Prior to it, people used to refer to the sales as 'Day after Thanksgiving Sale' or some variation of it.
The day was given its name as it is often the day that shops "move into the black", meaning they have enough money to cover their costs while reducing prices.
In the UK the name traditionally refers to the Friday before Christmas, which is when police and NHS emergency services anticipate extra pressures put on them due to festive celebrations. However, since 2014 the term has become more associated with the huge shopping event.
It is well known among shoppers as a day of bargains that have come across the pond from the US since the beginning of the 21st century.