Black Friday—that magical (and chaotic) time of year when we beg our loved ones for their holiday gift lists in advance so that we can buy their presents as affordably as possible. But it hasn’t always been a retail holiday exclusive to deals and sales. 

A Financial Disaster

Many believe that the day after Thanksgiving is called "Black Friday" because it marks when stores shift from operating at a loss, or being "in the red," to earning a profit, or being "in the black." While this is technically true for some modern retail chains, the term's origins are a bit darker.

The term "Black Friday" was first coined in 1869, and it had nothing at all to do with Thanksgiving. Two investors, Jay Gould and Jim Fisk, caused a market crash by driving up the price of gold, which led to a 20% drop in the stock market. This also halted foreign trade and sent the value of corn and wheat into a downward spiral. It was a dismal day for the economy. But the term “Black Friday” did not gain widespread usage until much later.

More Than One Story

Beyond the market crash in the mid to late 80’s, the first place that America saw the phrase “Black Friday” was back in the 1950s. Police in the city of Philadelphia used the term to describe the chaos that ensued on the day after Thanksgiving, when hordes of suburban shoppers and tourists flooded into the city in preparation for the big Army-Navy football game held on that Saturday every year.  

Not only were Philly cops not allowed to take the day off, but they had to work extra-long shifts to deal with the additional crowds and traffic. Shoplifters also took advantage of the chaos in stores and made off with merchandise, adding to the law enforcement headache. 

By 1961, “Black Friday” had caught on in Philadelphia. The city’s merchants and boosters tried to change it to “Big Friday” t o remove the negative connotations, but it didn't stick. “Black Friday” held firm colloquially, but didn’t gain national appeal until much later. 

Sometime in the late 1980s retailers found a way to reinvent Black Friday and turn it into something that reflected positively, rather than negatively, on them and their customers. The result was the “red to black” concept of the holiday mentioned earlier, and the notion that the day after Thanksgiving marked the occasion when America’s stores finally turned a profit. 

Retail Marketing at its Best 

Fast forward to today, Black Friday has evolved into a global phenomenon, with retailers offering discounts that extend through the weekend into the increasingly popular Cyber Monday. Retailers wanted to leverage the term's newfound popularity for commercial gain, but, how? (Spoiler alert, it’s through strategic marketing) 

In the early 1990s, retailers began launching massive sales events specifically tied to Black Friday, promoting early morning “doorbusters” and limited time deals to get shoppers into the store as early as possible. In fact, stores started opening earlier and earlier each year—beginning 6 a.m., then at 5 a.m., then at 4 a.m., until eventually Thanksgiving evening itself became the start of the sales. No matter how early doors opened, there were always people lined up and even camping out overnight in front of big name stores just to score a good deal on electronics.

The idea was simple—create a sense of urgency. The more you tell people that there is a “limited time” to get that half-off TV or discounted commercial and residential lighting, the more likely they were to show up in droves.

This marketing strategy worked as planned and Black Friday started to build momentum as more and more people got caught up in the hype. The frenzy wasn’t just about finding good deals; it was about being part of the event, whether you were there for the discounts or the experience. It became a cultural phenomenon, something that symbolized the beginning of the holiday shopping season.

Then of course, social media came along to make things even bigger. What started as a retail event confined to brick-and-mortar stores quickly morphed into an online shopping spree. Eventually, Ellen Davis of the National Retail Federation dropped the phrase “Cyber Monday” in 2005, offering an alternative to those who weren’t keen on braving the crowds (because it truly was a jungle out there). The term was coined based on 2004 research showing "one of the biggest online shopping days of the year" was the Monday after Thanksgiving.

The Modern Black Friday

In 2024, Black Friday has become something we all know and love (or maybe dread). Since the recent boom in technology, it’s no longer just about physical stores—it’s a full-stop event that spans the entire weekend. We’ve got the “Black Friday Weekend” with sales that often start before the big day and stretch into Cyber Monday and beyond. Sunco has even launched their “Pre-Black Friday Sale” which extends through the holiday weekend. 

Even with all the chaos, Black Friday is still a fun tradition for many. Whether you’re in it for the thrill, the deals, or just to see if that new gadget is as good as the ad says, there’s no denying that this pseudo-holiday has come a long way since its origins.