Black Friday has become synonymous with the commencement of the holiday shopping season in the United States, marking a day when retailers roll out significant discounts and promotions. Celebrated annually on the Friday following Thanksgiving Day, it’s a highly anticipated event for shoppers eager to snag deals both in brick-and-mortar stores and online. National chains and smaller businesses alike participate, offering limited-time specials across a wide spectrum of products to attract consumers.
Massive crowds of shoppers fill the streets outside Macy's Herald Square in New York City on Black Friday, the day after Thanksgiving, highlighting the Black Friday shopping frenzy.
Debunking the “Black Friday” Profit Myth
A common misconception surrounds the name “Black Friday,” with many believing it signifies the day retailers transition from operating at a loss (“in the red”) to profitability (“in the black”) due to the surge in sales after Thanksgiving. According to this popular myth, Black Friday is when businesses finally start making money for the year. However, this explanation is not historically accurate.
The True Origins: Philadelphia and Holiday Shopping Chaos
The term “Black Friday” actually originated in Philadelphia during the early 1960s. It was coined by police officers to describe the chaotic scenes created when massive crowds of suburban tourists flooded into the city for the annual Army-Navy football game held on Saturday after Thanksgiving and to begin their Christmas shopping. This influx of people caused significant headaches for the Philadelphia police department. They had to work extended shifts to manage the resulting traffic congestion, accidents, shoplifting incidents, and general disorder.
Over time, the term “Black Friday” stuck within Philadelphia. Local businesses, recognizing the negative connotation, attempted to rebrand it as “Big Friday” to project a more positive image.
Black Friday’s Rise to National Prominence
It wasn’t until the late 1980s that “Black Friday” gained nationwide recognition as a positive indicator of retail success. Merchants began popularizing the “red-to-black” profit narrative to associate the day with the start of their profitable season and to promote it as the biggest shopping day of the year in the United States. Interestingly, despite this perception, data often showed that the Saturday before Christmas actually generated the largest sales volume for most retail stores.
The Evolution of Post-Thanksgiving Shopping Days
In recent years, Black Friday has become part of a larger landscape of post-Thanksgiving shopping events. “Small Business Saturday” was created to encourage consumers to support local retailers on the Saturday after Thanksgiving. “Cyber Monday” emerged to capture the growing trend of online shopping, offering deals specifically for online purchases on the Monday following Thanksgiving. Furthermore, “Giving Tuesday” has been established as a day dedicated to charitable giving, contrasting the consumerism of the preceding days.
The Other Black Friday: The 1869 Financial Crisis
It is important to note that “Black Friday” also carries a completely unrelated historical meaning. In 1869, it referred to a day of financial panic when Wall Street financiers Jay Gould and James Fisk’s attempt to corner the gold market collapsed. Their scheme to artificially inflate gold prices by buying up vast quantities of gold failed on Friday, September 24, 1869, due to government intervention by President Ulysses S. Grant. This resulted in a dramatic stock market crash and widespread bankruptcies across America.
In conclusion, while the term “Black Friday” might evoke images of crowded stores and deep discounts today, its origins are rooted in the less glamorous reality of post-Thanksgiving chaos in Philadelphia. It has evolved from a local police term to a nationally recognized shopping phenomenon, and understanding its history provides a richer context to this significant retail event.
