Why Is Black Friday Important and How It Impacts Retail

Black Friday is a significant event in the retail industry, with sales reaching a staggering $59 billion in 2020, making it the largest shopping day in the United States.

This massive revenue boost is a result of retailers offering deep discounts on a wide range of products, often by 50% or more, to kick-start the holiday shopping season.

The day after Thanksgiving has become a major shopping event, with many retailers opening their doors at midnight or even earlier to accommodate eager customers.

Black Friday has become a crucial time for retailers to make up for slower sales throughout the year, with some stores relying on this one day to break even or even turn a profit.

Black Friday has its roots in Philadelphia, where it was initially used to describe heavy traffic and crowds of tourists on the day after Thanksgiving in the 1960s.

The term "Black Friday" was first used in 1951 to refer to workers calling in sick on Friday to make their weekends longer, but it didn't gain widespread use until the 1980s when retailers started promoting the idea that the day after Thanksgiving marked the occasion when America's stores finally turned a profit.

By the late 1980s, retailers had successfully rebranded Black Friday as a positive event, and the term's darker roots in Philadelphia were largely forgotten.

The term "Black Friday" originated in Philadelphia in the 1950s and 1960s, where police officers referred to it as the day of massive traffic jams and overcrowding on the day after Thanksgiving.

By the 1960s, Black Friday was already being used to describe the shopping day in Philadelphia, where stores would tout major sales and the unveiling of holiday decorations.

In 1961, the city's merchants and boosters tried to change the name to "Big Friday" to remove the negative connotations, but the term stuck.

The concept of retailers throwing post-Turkey Day sales started long before the name "Black Friday" was coined, as stores have promoted major deals the day after Thanksgiving for decades.

The term "Black Friday" spread to the rest of the country in the 1980s, but with different interpretations, with merchants promoting the idea that retailers had suffered losses for most of the year and could make a profit only starting from the day after Thanksgiving.

In Canada, Black Friday was introduced by retailers to stop consumers from shopping in the US, and has since become one of the busiest shopping days in the country.

Shopping after Thanksgiving goes back to the late 1800s, with department stores starting to cash in on this trend by advertising post-Thanksgiving sales by the early 20th century.

The holiday season can account for up to 20% of a retailer's annual sales, making it a big deal for the retail industry.

The name "Black Friday" is often attributed to the idea that retail businesses can sell enough on this single Friday (and the ensuing weekend) to put themselves "in the black" for the year, but its origins are actually rooted in Philadelphia police officers referring to the day as the worst day of the year due to traffic jams and overcrowding.

They came up with an alternative explanation: Black Friday was the day when retailers went from being in the red to being in the black. This is based on accounting terms, where red ink means a loss and black ink means a profit.

This new spin helped to redefine Black Friday as a good thing for both retailers and consumers. By the 1980s, the term had gone national and retailers started to own Black Friday as part of the holiday sales season.

Economists consider Black Friday a good gauge of consumer confidence, which can indicate discretionary spending going forward.

Some investors and stock analysts look at Black Friday numbers as a way to gauge the overall health of the entire retail industry.

However, others think Black Friday only causes short-term gains or losses, and doesn't have much impact on the stock market as a whole.

The stock market can be affected by people having extra days off for holidays, leading to increased trading activity and higher returns the day before a holiday or a long weekend.

Many traders look to capitalize on these seasonal bumps, which can be a significant factor in the market.

Here are some key points to consider:

Overall, Black Friday is an important indicator of consumer confidence and retail industry health, and can have a significant impact on the stock market.

Black Friday in the digital age has become a behemoth of online shopping, with online sales surging to record-breaking numbers. In 2020, online sales on Cyber Monday reached a record $10.8 billion, the biggest online shopping day in U.S. history.

The pandemic accelerated the shift to online shopping, with online and other non-store sales up 23.9% in November and December 2020 compared to the previous year. This trend is expected to continue, with more and more people choosing to shop online.

Online traffic increases significantly on Black Friday and Cyber Monday, with up to 220% and 155% increases respectively compared to a normal sales day. This presents a huge opportunity for e-commerce retailers to clear their stock and attract new buyers.

The internet revolutionized the way we shop, especially around Black Friday.

In 2005, the National Retail Federation's Shop.org division coined the term "Cyber Monday" to describe the massive online sales surge the Monday after Thanksgiving.

Online sales on Cyber Monday were a staggering $484 million that year.

By 2020, this number had skyrocketed to a record $10.8 billion, making it the biggest online shopping day in U.S. history.

Black Friday went global, with countries like Canada, the UK, South Africa, and Australia adopting the sales event to fit their own holiday seasons and consumer habits.

In the UK, total online retail sales on Black Friday reached £8.57 billion in 2020.

The pandemic had a profound impact on online shopping trends, accelerating everything in 2020. Online and other non-store sales were up 23.9% in November and December 2020 compared to 2019.

Many consumers turned to online retailers for their holiday shopping due to health concerns and lockdowns. Stores adapted by offering curbside pickup and beefing up their online presence to meet the digital demand.

The pandemic showed retailers how important e-commerce is during the holiday season, and it's clear that online shopping is here to stay. By 2020, online sales on Cyber Monday reached a record $10.8 billion, the biggest online shopping day in U.S. history.

Here are some key statistics that highlight the pandemic's effect on online shopping:

The shift to online shopping has been a game-changer for retailers, and it's no surprise that online Black Friday sales can start as early as Monday of that week.

Black Friday is a make or break period for retailers to make profits and drive up yearly sales up, with holiday sales in November and December 2020 in the US being $789.4 billion, above forecast.

Retailers use Black Friday to get customers with price and promotions, often seeing a big chunk of their annual sales during this period. For some retailers, holiday sales are 30% of their annual revenue.

In 2019, US retailers spent around $6.1 billion on holiday season advertising, according to Kantar Media.

Retailers have optimized their websites and apps to make the online shopping experience better, with features like personalization and one-click checkout. In 2020, mobile devices accounted for 40% of online sales on Black Friday, according to Adobe Analytics.

To prepare for Black Friday, eCommerce retailers can capitalize on online merchandising by displaying the best offers and products on their site to increase sales. They can also offer incentives to accelerate social sharing by providing discount coupons.

Here are some key statistics on Black Friday sales:

Black Friday has become a significant shopping event in Canada, with sales growing by 4.2% in 2019 compared to the previous year.

In fact, Black Friday is now one of the busiest shopping days in Canada, right up there with Boxing Day on December 26.

Canadian retailers introduced Black Friday to stop consumers from shopping in the US, and it's clear that this strategy has paid off.

Black Friday's popularity has grown significantly over the past 10 years, making it a major shopping day in Canadian culture.

Black Friday is a major shopping event in the United States, with over 147 million people participating in 2020.

The day after Thanksgiving marks the beginning of the holiday shopping season, with retailers offering significant discounts and promotions.

In fact, the average American spends around $398 on Black Friday, with total sales reaching $72 billion in 2020.

Online sales are on the rise, with $9 billion in sales on Black Friday in 2020, a 21.6% increase from 2019.

E-commerce has become the preferred choice for many consumers, leading to a decline in foot traffic in brick-and-mortar retail stores. In 2019, in-store visits on Black Friday were down 6.2% from the previous year, according to ShopperTrak.

Brick-and-mortar stores still play an important role in retail, but it's clear that online shopping is where the action is.

Did you know that the average person spends around 4 hours and 12 minutes per day on their smartphone? This is a staggering amount of time, and it's essential to consider the impact it has on our lives.

Most adults check their phones over 150 times per day, with some people reaching for their phone as soon as they wake up. This constant connectedness can be both a blessing and a curse.

The human brain can only focus for about 45 minutes before it needs a break. This is known as the ultradian rhythm, and it's essential to take breaks and rest our minds to stay productive.

According to a study, people who use their phones before bed are more likely to experience sleep disturbances and have lower sleep quality. This is because the blue light emitted from screens can suppress melatonin production.

The average attention span of a person has decreased from 12 seconds in 2000 to 8 seconds in 2013. This is likely due to the constant stream of information and distractions we're exposed to every day.

Research shows that people who take regular breaks and practice mindfulness have improved cognitive function and better concentration.