Black Friday, the annual shopping extravaganza that kicks off the holiday season, has become a staple in many consumers’ calendars. This event has gained significant popularity around the world, captivating shoppers with its enticing deals and discounts. Over the years, Black Friday has witnessed remarkable success and undergone significant changes to adapt to evolving consumer habits. However, the COVID-19 pandemic has presented new challenges and reshaped the way consumers shop and celebrate the holiday shopping season.
Contrary to popular belief, Black Friday did not always have its current connotation. The term “Black Friday” was not coined to describe the frenzied shopping experience we know today.
“The first recorded use of the term “Black Friday” was applied not to post-Thanksgiving holiday shopping but to financial crisis: specifically, the crash of the U.S. gold market on September 24, 1869. Two notoriously ruthless Wall Street financiers, Jay Gould and Jim Fisk, worked together to buy up as much as they could of the nation’s gold, hoping to drive the price sky-high and sell it for astonishing profits. On that Friday in September, the conspiracy finally unraveled, sending the stock market into free-fall and bankrupting everyone from Wall Street barons to farmers.
The most commonly repeated story behind the Thanksgiving shopping-related Black Friday tradition links it to retailers. As the story goes, after an entire year of operating at a loss (“in the red”) stores would supposedly earn a profit (“went into the black”) on the day after Thanksgiving, because holiday shoppers blew so much money on discounted merchandise. Though it’s true that retail companies used to record losses in red and profits in black when doing their accounting, this version of Black Friday’s origin is the officially sanctioned—but inaccurate—story behind the tradition.” (History.com)
Another story comes from Philadelphia, where on Friday, November 24th, 1960, two local television stations went on air simultaneously, promoting big discounts at local stores. This event sparked a shopping frenzy as consumers flocked to the malls and stores to grab the best deals. The influx of customers overwhelmed the stores and led to congested traffic, resulting in the term “Black Friday” being used to describe the chaotic scene.
Over the years, Black Friday solidified its position as one of the most significant shopping events of the year. Retailers began offering increasingly lucrative deals to attract customers and boost sales, contributing to the event’s growing popularity. The allure of discounted electronics and other popular items prompted people to wake up early, brave the crowds, and engage in intense bidding wars.
Then came 2020.
The COVID-19 pandemic has disrupted almost every aspect of our lives, including the way we shop. Traditional brick-and-mortar stores were forced to temporarily close or implement strict safety measures, leading to a surge in online shopping. As social distancing measures became the norm, consumers turned to e-commerce for their holiday shopping needs.
These changes have had a significant impact on Black Friday sales. The surge in online shopping had been disrupting the traditional Black Friday rush, and post-COVID, the difference became even more pronounced. This shift away from the in-store experience has forced retailers to adapt their strategies, offering extended promotions, staggered discounts, and virtual shopping experiences.
Furthermore, the pandemic has had a ripple effect on the entire holiday season. With travel restrictions in place and people choosing to spend the holiday season closer to home, the gift-giving landscape has undergone significant changes. Instead of buying extravagant gifts, consumers are increasingly opting for experiences, gift cards, and personalized presents.
Despite the challenges posed by COVID-19, retailers are embracing the opportunity to extend the holiday shopping season. By enticing customers to shop earlier and staying competitive throughout the holidays, retailers hope to capture a larger share of the market.
Many retailers have implemented Black Friday-style deals throughout November, offering early discounts and extended promotions. By spreading out the shopping frenzy, retailers aim to create a sense of urgency and excitement throughout the month. This strategy also helps to alleviate the pressure on a single day and spread out the strain on their operations.
Additionally, retailers are focusing on creating a seamless online shopping experience. With the rise of e-commerce, consumers expect a seamless and hassle-free shopping experience. Retailers are investing in robust online platforms, enhanced checkout options, and seamless delivery processes to enhance the online shopping experience.
As we enter a new era of holiday shopping, it will be interesting to see how retailers adapt to the changing landscape and continue to lure customers in during this crucial time of the year.
Michael's Musings 