Ten things you didn't know about Black Friday

WATCH: Surprising facts about Black Friday

Related Stories

Black Friday is the biggest shopping day of the year in the biggest economy in the world.

Full from their Thanksgiving feasts, millions of US shoppers descend on stores across the country on the Friday after the holiday, hoping to save on their Christmas shopping.

But as ever more promotions proliferate - add Cyber Monday and Small Business Saturday to the shopping calendar - the question remains: Just what is Black Friday anyway?

Here are 10 surprising facts about America's unofficial paean to all things commercial.

1. "Black Friday" used to refer to stock market crashes in the 1800s.

Although it is now known as the biggest shopping day in the US, the term "Black Friday" originally referred to very different events.

"Black for centuries has been used for various calamities," says linguist Benjamin Zimmer, executive editor of Vocabulary.com.

Black Friday chalkboard with gold prices A chalkboard shows the prices of gold on "Black Friday", which reached a high not surpassed for 100 years

In the US, the first time the term was used was on 24 September 1869, when two speculators, Jay Gould and James Fisk, tried to corner the gold market on the New York Stock Exchange.

When the government stepped in to correct the distortion by flooding the market with gold, prices plummeted and many investors lost sizable fortunes.

Macy's float Macy's parades began in 1924 and featured store employees
2. "Santa Claus parades" were Black Friday's predecessor.

For many Americans, the Macy's Thanksgiving Day Parade has become part of the holiday ritual.

But the event actually was inspired from the US's neighbours in the north. Canadian department store Eaton's held the first "Santa Claus parade" on 2 December 1905. Once Santa appeared at the end of the parade, the signal was that the holiday season - and thus, holiday shopping, had begun. Of course, consumers were encouraged to buy their presents at Eaton's.

US department stores such as Macy's took inspiration from the parade, and started sponsoring similar efforts across the country. In 1924, New York saw the first Macy's parade featuring animals from Central Park Zoo and run by the store's employees.

3. The date of Thanksgiving was, indirectly, determined by holiday shoppers.

From the mid-nineteenth century to the early twentieth century, in a custom started by US President Abraham Lincoln, the president would declare a "day of thanks giving" on the last Thursday in November. This could either fall on the fourth or fifth Thursday in the month.

But in 1939, a funny thing happened - the last Thursday happened to be the last day in November. Retailers, worried about the shortened holiday shopping season, petitioned then-President Franklin Delano Roosevelt to declare the holiday a week earlier - which he did.

For the next three years, Thanksgiving was known derisively as "Franksgiving" and celebrated on different days in different parts of the country.

Finally, at the end of 1941, a joint resolution from Congress cleared up the matter. From then on, Thanksgiving would be celebrated on the fourth Thursday in November - guaranteeing an extra week of shopping before Christmas.

Western Union telegraph protesting Thanksgiving change Mr Roosevelt received a barrage of messages protesting his capitulation to the will of retailers
4. 'Friday-after-Thanksgiving-itis'

According to Bonnie Taylor-Blake, a researcher at the University of North Carolina, Factory Management and Maintenance - a labour market newsletter - lays claim to the first use of the term as it relates to the holiday.

In 1951 the circular drew attention to the suspiciously high level of sickness that day.

"'Friday-after-Thanksgiving-itis' is a disease second only to the bubonic plague in its effects. At least that's the feeling of those who have to get production out, when Black Friday comes along. The shop may be half empty, but every absentee was sick - and can prove it," reads the circular.

5. Big Friday?
New York Times report from 1975 A New York Times report from 1975 locates the phrase "Black Friday" as a bit of Philadelphia slang

The city that first popularised the term was Philadelphia. Police officers, frustrated by the congestion caused by shoppers on the day, started referring to it derisively as "Black Friday".

Unsurprisingly, retailers weren't happy to be associated with traffic and smog.

So they tried to rebrand the day "Big Friday", according to a 1961 local Philadelphia paper.

Needless to say, the term didn't stick.

6. "Black Friday" didn't become a national term until the 1990s.

The phrase 'Black Friday' remained a Philadelphia quirk for a surprisingly long time.

"You see it spreading a little bit to Trenton, New Jersey, which is close by, but it doesn't really start getting mentioned outside of Philadelphia until the 1980s," says Mr Zimmer.

"It didn't become widespread until the mid-90s."

7. Some say Black Friday refers to "going into the black".

Retailers tried to put a positive spin on the "black" bit of the term by saying it was when retailers became profitable, or as the saying goes "went into the black". However, there is no evidence to back this claim up.

It is true that holiday sales make up the bulk of consumer spending for the year.

Last year, shoppers on Black Friday spent an estimated $59.1bn, according to the National Retail Federation. But how much of that is profit isn't clear - given how retailers vie with each other to offer bigger incentives and discounts.

8. Black Friday became the biggest shopping day of the year in 2001.

Although it's often touted as the biggest shopping day of the year, the day didn't earn the designation consistently until the 2000s.

That's because, for many years, the rule wasn't that Americans loved deals, it was that they loved procrastinating. So up until that point, it was the Saturday before Christmas that typically saw the most wallets being emptied.

Samira Hussain looks at how people are spending their cash on Black Friday

9. Black Friday has become an international affair.

Canadian retailers have long winced as their customers went south on Black Friday in search of better shopping deals. So now they've begun offering their own sales - despite the fact that Canadian Thanksgiving is a full month earlier.

In Mexico, there is El Buen Fin, which roughly translates as "the good weekend". It's pegged to the anniversary of Mexico's 1910 revolution, which sometimes falls on the same day American Thanksgiving. It lasts, as the name suggests, the entire weekend.

Beyond North America, as online shopping has grown, retailers like Amazon have looked to Cyber Monday, first heard of in 2005, to promote deals for shoppers across the globe. While in China, the recently launched 'Singles Day' prompted sales of two million bras in one hour, making a pile that would be three times higher than Mount Everest.

10. Black Friday is becoming extinct.

Wal-Mart, the world's largest retailer, broke the Black Friday tradition in 2011, when it opened its store on Thanksgiving evening. Ever since, retailers have been in a race to catch up and now, 33 million Americans said they planned to shop immediately after turkey.

But don't worry - this time, retailers have come up with a name themselves: "Grey Thursday".

More on This Story

Related Stories

More Business stories

RSS

BBC Business Live

  1.  
    VIRGIN MONEY FLOAT 07:11:

    Virgin Money has announced details of its share sale. The firm hopes to raise £150m from the sale of about 25% of the bank, it said. If the sale is successful the Treasury will receive £50m, which was part of the deal when Virgin Money took over assets from Northern Rock.

     
  2.  
    ECB MEETING 06:57: BBC Radio 4
    Eurozone sign

    The European Central Bank (ECB) hosts its monthly meeting in Naples today, amid worries that the eurozone economy is deteriorating. "The ECB can buy time for governments to act... but it cannot generate lasting growth," says Moritz Kraemer from Standard & Poor's on Today. He says Europe needs to reduce the debt load of households, firms and governments.

     
  3.  
    PIMCO EXODUS 06:48: BBC Radio 4

    Investors have taken £14.5bn out of the investment firm Pimco since its founder Bill Gross resigned last week. Andrew Balls, chief global investment office at Pimco, says "it's calmed down very quickly though". The departure was not a huge surprise, he reckons. Mr Balls reminds listeners to Today that Mr Gross was 70 "and wouldn't be there [Pimco] for ever". Ouch.

     
  4.  
    PARIS MOTOR SHOW 06:40: BBC World News
    Rolls Royce chief executive, Torsten Muller-Otvos

    (Imagine a German accent) "We are on the roll ja," says the German chief executive of Rolls Royce Motor Cars, Torsten Muller-Otvos on World Business Report. He expects the company to have another record year. He is standing in front of a limited edition Rolls-Royce Phantom, only 20 were made and, sorry readers, they are all sold out.

     
  5.  
    SHARING ECONOMY 06:31: Radio 5 live

    What is the sharing economy? "The sharing economy defines the assets you own and skills you have" says Debbie Wosskow, chief executive of Love Home Swap on 5 live. (Any the wiser?) Customers need protection, but regulation needs to keep up with this emerging market, she says. She's writing a review into the sharing economy.

     
  6.  
    CONSERVATIVE CONFERENCE 06:17: Radio 5 live

    Lord Digby Jones, the crossbench peer and businessman is on 5 live after his appearance at the Conservative Party conference. He is worried people think money grows on trees, rather than coming from business, but also says business should mend its image: "I don't want chief executives paying themselves big bonuses [right now]. They may deserve it, but it sets a lousy example."

     
  7.  
    ARGENTINA 06:13: Radio 5 live
    President Cristina Fernandez

    The boss of Argentina's central bank has resigned. Juan Carlos Fabrega had been calling the government to tackle inflation and rein in spending. That created conflict with the nation's economy minister. The BBC's South American Business Reporter Katy Watson says the resignation doesn't make President Cristina Fernandez de Kirchner look good either.

     
  8.  
    PARIS MOTOR SHOW 06:07: Radio 5 live

    Jurgen Stackman, chairman of carmaker Seat is on Radio 5 live. Ten years ago electric vehicles were seen as the future, so what went wrong? Industry watchers were very optimistic about the speed of people picking them up, he says. Electric cars still have mileage and range limitations and families with one car don't want to rely on an electric car, he adds.

     
  9.  
    US SHARES SLIDE 06:00: BBC World News
    New York Stock Exchange

    There were sharp losses for US shares overnight. On World Business Report, Michael Hewson, chief analyst at CMC Markets reminds us that the US market has had a good run recently. But there is not much to be positive about at the moment, he says. The recent economic data from China and Japan has not been great. Traders are also preparing for higher interest rates in the US, Mr Hewson says.

     
  10.  
    06:00: Howard Mustoe Business reporter

    Good morning. You can get in touch via email bizlivepage@bbc.co.uk and on twitter @BBCBusiness

     
  11.  
    06:00: Ben Morris Business Reporter

    There were sharp losses for US shares overnight, so it will be interesting to see how Europe responds to that later. Plus we'll have reports from the Paris Motor Show. It should be a fun morning, so stay with us.

     

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.