What is Black Friday? Everything you need to know

What’s black about the fourth Friday in November that made it a special day for shopping and earned the name “Black Friday”? In this article, you will learn what black Friday is and why it is called alongside its history, significance to shoppers, and how to prepare to maximize the best of it. Let’s dive in already!

Black Friday is an annual shopping day that originated in the United States and has fast become a global phenomenon, marking the unofficial beginning of the holiday shopping season leading to a new year. It typically falls on the day after Thanksgiving (which happens every fourth Thursday in November), and it has evolved into a retail phenomenon that attracts millions of shoppers eager to maximize deals and discounts. 

The Origin of Black Friday

Over the years, the word “black” has been used to denote something negative. There have been different events in the history of the United States that have been used for black Friday, however, the one that went mainstream happened first in 1869 in what’s called the panic of 1869 when financier Jay Gould and James Fisk tried to control and manipulate the gold market by using their connections with President Grant's administration. 

When the President learned about this, he instructed the Treasury to release a lot of gold, which halted the manipulation and drove the price down by 18%. On that day, some people got super rich, and others lost everything, including the president's brother-in-law, Abel Corbin. It must have been truly “dark” and “black” as most people lost their fortune.

Another earliest usage of “black Friday” was used by police in Philadelphia in the 1960s to describe the chaotic and congested post-thanksgiving traffic as there are a lot of people on the road trying to start Christmas shopping as the festive period is fast approaching.

The term evolved over the years to signify the day when retailers transitioned from operating at a financial loss ("in the red") to turning a profit ("in the black"). I personally like this, it sounds more exciting as some businesses shift from losses to gains as the day is one of the busiest shopping days of the year. 

Significance of Black Friday to Shoppers

Doorbuster Deals: 

Retailers offer shoppers exclusive, time-sensitive deals known as "doorbusters." These are deeply discounted items meant to get customers into stores, often prompting early-morning or late-night shopping experiences. Shoppers look forward to these offers to get items at a lesser cost.

Extended Store Hours:

Black Friday is also known for its extended store hours, with some retailers opening as early as midnight or even staying open throughout the night. This provides shoppers with ample time to snag the best deals.

Online Shopping Experience: 

The digital era has propelled Black Friday beyond physical storefronts. Online retailers participate with enthusiasm, offering virtual doorbusters and exclusive web-only deals to cater to the growing population of online shoppers. Shoppers can maximise these offers from the comfort of their homes.

Cyber Monday: 

As a natural extension of Black Friday, Cyber Monday follows the weekend, focusing on online deals and discounts. This day is prevalent for securing tech gadgets, electronics, and other online-exclusive items.

Spending patterns on Black Friday.

On Black Friday, spending patterns in the United States and African countries like Nigeria, Ghana, and Kenya reveal a substantial surge in consumer activity. In the United States, shoppers eagerly participate in the shopping frenzy, with both brick-and-mortar stores and online platforms witnessing a significant uptick in sales. 

According to recent data, retail sales in the U.S. during Black Friday consistently show a sharp increase compared to regular shopping days. In 2021, the average spending per shopper on Black Friday in the United States was $226. In 2022, more than 122.7 million people visited US brick-and-mortar stores over the Black Friday weekend, up 17% year-over-year, according to the National Retail Federation. 

Shopify store owners also published that the average order total for Black Friday/Cyber Week in 2022 was $102.10, a little higher than in 2021, which was $100.70. There is a forecast that Americans are planning on spending around $485 per person in both online and brick-and-mortar stores in 2023.

Similarly, in African nations like Nigeria, Ghana, and Kenya, Black Friday has become a notable event on the consumer calendar. Recent data indicates a growing trend in consumer participation, with a marked increase in online transactions and in-store purchases during the period. There is a forecast that Nigerians are planning on spending around ₦22000 and Kenyans around 9000 KES per person in both online and brick-and-mortar stores. 

Overall, the global impact of Black Friday is evident in the spending behavior of consumers, both in the United States and across African markets.

Tips on how to get the best of Black Friday.

Research Deals in Advance: 

Before the Black Friday rush begins, take the time to plan. Research and compile a list of products you're interested in purchasing. Many retailers release their Black Friday deals in advance, allowing you to compare prices and identify the best discounts. Having a clear plan will help you focus on the items you truly want and avoid getting overwhelmed by the abundance of choices.

Set a Budget: 

With the allure of deep discounts, it's easy to get carried away and overspend. Establish a budget before Black Friday to ensure you stay within your financial limits. Knowing how much you're willing to spend on specific items will help you make informed decisions and prevent impulse purchases. You can also manage this with the Bitnob App, create and fund your card in advance to avoid missing time-bound offers or declined payments. Download the Bitnob app here to get started.

Sign Up for Alerts and Newsletters: 

Many retailers offer exclusive deals and early access to subscribers. Sign up for newsletters and alerts from your favourite stores to stay informed about upcoming promotions and discounts. This can give you a competitive edge, as some deals may be limited or available only to subscribers.

Utilize Online Shopping Strategies:

If facing crowded stores isn't your preference, take advantage of online shopping. Many retailers extend their Black Friday deals to their online platforms. Be ready to make quick decisions, as online deals can sell out rapidly. Additionally, consider using cashback or rewards programs to maximize your savings while making purchases.

Conclusion

Black Friday has evolved from a simple post-thanksgiving tradition into a global shopping phenomenon. Understanding its origins, characteristics, and strategic approaches can empower consumers to make informed decisions during this retail extravaganza. 

Whether you're a seasoned Black Friday shopper or a first-timer, armed with this knowledge, you can navigate the chaos and make the most of this annual consumer celebration.