Black Friday: History, Trends, and Global Impact

Black Friday is a day of crazy discounts that marks the beginning of the pre-Christmas shopping season. For retailers, this period becomes the main tool for stimulating business and attracting shoppers.

The date of Black Friday changes every year and falls at the end of November. In 2024, it will take place on November 29.

Although it is an American tradition, Black Friday has become popular all over the world, including Ukraine and CEE. AIN is telling you everything you need to know about this day, its history and main trends, and smart shopping tips.

Why is it called Black Friday?

Although the current understanding of this day is associated with discounts, the term "Black Friday" originated for other reasons. Until the 1950s, the phrase was used primarily to express financial crises.

However, its origin is associated with the 1960s in Philadelphia, when police used the term in a negative context to describe the chaos that occurred in the city on the day after Thanksgiving (a traditional holiday in the US which takes place on the fourth Thursday in November).

The streets were filled with cars and crowds of people rushing to shop, putting police and city services on high alert.

Businesses understood the potential profitability of the day. However, many merchants in Philadelphia did not like the label "Black Friday" and tried to change it to a more positive one: "Big Friday," but this initiative did not catch on.

Later, advertisers decided to rethink the negative connotation of the term and associated it with financial accounting: traditionally, in the United States, profits are recorded in black ink and losses in red. Therefore, Black Friday symbolizes the moment when retailers push "into the black" - that is, they begin to make a profit due to the rapid growth of sales. This new interpretation spread quickly and became widely accepted.

Over time, Black Friday gained popularity not only in the United States, but also in many countries around the world, especially in neighboring Canada and Mexico, and later in Europe, Asia and Latin America. Black Friday became popular thanks to international brands and marketplaces, which is why local retailers joined the trend.

Today, Black Friday is associated with deep discounts and active shopping.

Growing popularity

In the 1990s, Black Friday gained popularity largely because major retailers such as Walmart, Macy's, and Target began offering massive discounts on the day. Over the next few years, the event became an important part of the retail holiday calendar for both businesses and consumers.

With the rise of e-commerce in the 2000s, retailers saw a 77% increase in online sales after Black Friday. This phenomenon came to be known as Cyber Monday.

In the 2010s, as e-commerce began to account for a significant portion of Black Friday and Cyber Monday sales, the popularity of the day began to grow internationally. By 2019, 50 to 60 percent, or 129 countries, participated in the shopping holiday.

Why Black Friday is so attractive to businesses?

• The biggest influx of shoppers occurs in the early hours of the morning, with stores opening at 6:00 a.m., but often as early as 5:00 a.m. or even 4:00 a.m. Many people are willing to wait in long lines before the stores open to get the best deals.
• The discounts caused such a stir that the police and ambulances were called to the stores because of fights and shouting matches between shoppers. Sometimes people refused to leave the store even after all the promotions had ended.
• Every year, however, online shopping on sales days eclipses brick-and-mortar stores, with consumers spending more on each order than the year before.
• In 2019, Cyber Monday sales surpassed Black Friday. That year, total U.S. sales on Cyber Monday were $9.4 billion, while Black Friday sales were $7.4 billion.
• The following year, the COVID-19 pandemic forced more people to shop from their couches and avoid crowded stores and malls.
• Consumers spent $9 billion online on Black Friday, a 21.6% increase from the previous year. That surge meant American consumers spent at least $6.3 million per minute, or $27.5 per person.
• Amazon called the holiday shopping season its biggest in history, but did not release actual sales figures.
• This made Black Friday 2020 the second-biggest online shopping day in U.S. history, behind Cyber Monday the year before.
• The number was also beaten. By the end of Cyber Monday 2022, a record $10.8 billion had been spent online, and the following year, Cyber Monday sales reached a record $12.4 billion.
• In 2023, online retail sales in the United States alone reached a record $9.8 billion on Black Friday, up 7.5% from the previous year.

• This year, online spending on Black Friday is expected to reach $10.8 billion, while Cyber Monday is expected to reach $13.2 billion.

• Overall, more than 90 million shoppers will make online purchases in the U.S. alone in 2023, with total global spending during this period reaching approximately $298 billion, or about 25% of all holiday spending.
• In addition to the traditional increase in sales, marketplaces and brands also benefit from increased traffic to their platforms, increased brand awareness, and new customer acquisition.

Criticism and what you need to know

Though it has gained popularity around the world, Black Friday faces a number of criticisms based on its economic, environmental and social impacts.

Marketing manipulation

Many critics argue that Black Friday is primarily a marketing tool that encourages people to make impulse purchases. The prices of some products may be artificially inflated before the sale to create the illusion of significant discounts.

To avoid getting caught by inflated prices, we recommend using price-tracking tools or discount aggregators. Most are free and allow you to automate your search for bargains.

For example, the Google Chrome browser has built-in price tracking and discount alerts, but they are currently only available in the United States.

Image: Chrome Price Tracking

CamelCamelCamel and its counterpart Keepa track prices on Amazon, while the PayPal Honey browser extension not only tracks prices but also finds coupons for discounts at many popular Western retailers.

Ecological footprint

Mass shopping increases production and consumption, which has a negative impact on the environment. The production of new products requires a lot of resources and energy, and the increase in waste creates an additional burden on the ecosystem.

CO₂ emissions associated with the production and delivery of goods and an increase in the amount of packaging increase during this period. In the U.S., for example, the amount of waste increases by 25% on Black Friday.

Therefore, some companies are calling for green initiatives such as recycling, repair and conscious shopping instead of sales.

The Ordinary, owned by Canadian skincare company Deciem, directly boycotts Black Friday by closing its website and stores on the day. Patagonia encourages people to learn how to repair their clothes and enjoy spending time outdoors with their loved ones. Other brands, like Freitag, encourage sharing instead of buying.

Overconsumption and waste

Black Friday encourages mass consumption, often without real need. People buy products simply because of the bargain prices, leading to the accumulation of unnecessary items. This culture contributes to a cycle of throwaway consumption and resource depletion that exacerbates climate problems.

Promotions such as "limited supply" and "fear of missing out" marketing affect the psyche of consumers, forcing them to make decisions in a hurry. This increases stress and negatively affects the financial situation of many people.

Pressure on employees

Retailers often force their employees to work in overburdened conditions. Due to the influx of customers, store employees work overtime without the opportunity to rest. Some stores are introducing 24-hour shifts, which disrupts the balance between work and rest. The increased demand for goods in online stores also increases the workload of packers and sorters in warehouses.

How to shop wisely

• Make a list of the products you want: This will help you focus on your purchases and avoid impulse buying.
• Compare prices: Check the prices of products at different stores to find the best deals.
• Set a budget: Determine in advance how much you are willing to spend on purchases and stick to it.
• Do not give in to emotion: Do not rush into a purchase, carefully consider the need for each purchase.