What is Black Friday & Why is There So Much Discount on That Day?
Black Friday is an annual shopping event that takes place on the Friday following Thanksgiving Day in the United States, which falls on the fourth Thursday of November. It is often considered the unofficial start of the holiday shopping season. Black Friday is characterized by significant discounts, deals, and sales offered by retailers, both online and in physical stores. The event has since spread to other countries and regions as well.
The origin of the term “Black Friday” is somewhat unclear, but it is believed to have originated in the early 1960s in Philadelphia. One common explanation is that the term was used to describe the heavy and disruptive pedestrian and vehicle traffic that would occur on the day after Thanksgiving as shoppers rushed to take advantage of sales. Another theory suggests that it refers to the idea that retailers’ balance sheets would go from being “in the red” (indicating losses) to “in the black” (indicating profits) due to the increased sales during this period.
The main reasons for big discounts and deals on Black Friday are:
1) Attracting Shoppers: Retailers offer deep discounts to attract a large number of shoppers, both online and in stores, as this event marks the beginning of the holiday shopping season. By offering compelling deals, they hope to draw in a significant number of customers and generate substantial sales.
2) Clearing Inventory: Black Friday provides an opportunity for retailers to clear out excess or older inventory to make space for new products that they will be stocking for the holiday season. Offering steep discounts is a way to quickly sell off these items.
3) Competitive Advantage: Due to the competitive nature of the retail industry, businesses strive to outdo one another by offering better deals. This competition can lead to significant discounts and promotions.
4) Customer Acquisition and Retention: Black Friday is not only about making sales on that day but also about acquiring new customers and retaining existing ones. Retailers use this occasion to build customer loyalty and encourage repeat business.
5) Traditions and Expectations: Over the years, Black Friday has become a tradition in many households. Shoppers expect and anticipate discounts on this day, which drives them to participate in the event. Retailers respond by meeting these expectations.
6) Marketing and Hype: Retailers engage in extensive marketing campaigns to build excitement and anticipation around Black Friday, further encouraging shoppers to participate.
It’s important to note that Black Friday deals are not limited to just one day. Many retailers offer “Black Friday week” or “Black Friday month” sales that extend before and after the actual day, and they also participate in Cyber Monday, a day dedicated to online shopping deals, which follows the weekend after Black Friday.