The Black Friday Story

Black Friday, a shopping phenomenon recognized worldwide today, has a surprisingly rich and varied history. Its origins are deeply tied to American traditions and economic shifts, as well as cultural milestones that transformed it from a chaotic retail day into an international shopping event.

The Early Days: Financial Crisis & the Stock Market Crash (1869)

The term “Black Friday” first entered the American lexicon in the 19th century, but it had nothing to do with shopping. On September 24, 1869, a scandal involving two ruthless financiers, Jay Gould and James Fisk, led to a catastrophic stock market crash. Gould and Fisk tried to corner the gold market, causing gold prices to skyrocket and then plummet when the government intervened. The resulting panic was dubbed "Black Friday" as it ruined the fortunes of many, and its aftershocks rattled the economy for years.

The Modern Shopping Holiday Emerges: Philadelphia’s Traffic Jam (1950s–1960s)

The Black Friday we recognize today began taking shape much later. In the 1950s, Philadelphia police coined the term "Black Friday" to describe the chaos that ensued the day after Thanksgiving. Massive crowds of suburban shoppers and tourists flooded the city ahead of the annual Army-Navy football game, turning the streets into a gridlocked mess. Overworked police officers dreaded the day, as it meant long hours managing traffic, overcrowded streets, and potential shoplifting spikes.

While retailers weren’t fans of the negative connotations, the term "Black Friday" stuck, becoming a local colloquialism before spreading nationally. Retailers, however, weren't thrilled about the grim-sounding name and tried (unsuccessfully) to rebrand it as "Big Friday."

Turning Profits: From Red to Black (1980s)

By the 1980s, Black Friday had taken on its more positive financial meaning. Traditionally, retailers operated "in the red," meaning they were running at a loss for much of the year. The day after Thanksgiving, however, marked the point when sales surged and profits increased, pushing retailers "into the black." This new interpretation not only reframed Black Friday as a day of profitability but also encouraged consumers to embrace it as the official start of the holiday shopping season.

Retailers capitalized on this momentum, turning Black Friday into a strategic retail event. Deep discounts, doorbuster deals, and early opening hours became the hallmarks of the day, luring eager shoppers to spend their money.

Black Friday Goes Global: The 21st Century Explosion

As e-commerce and globalization took hold in the 21st century, Black Friday began spreading beyond the U.S. Companies like Amazon played a key role in exporting the shopping frenzy to Europe, Latin America, and even Asia. The growth of online shopping also gave rise to "Cyber Monday," a digital counterpart that followed Black Friday, offering tech deals and online exclusives.

In many countries, Black Friday has adapted to local cultures but still retains its essence of unbeatable deals and a consumer rush. Some places have even turned it into an extended period, lasting days or even weeks, rather than a single shopping spree.

Black Friday Today: Cultural Event or Consumer Chaos?

Today, Black Friday is more than just a retail event with Black Friday deals. It’s a cultural phenomenon that reflects both the highs and lows of consumerism. From viral videos of crowds rushing through store doors at dawn to discussions about sustainability and overconsumption, the day holds a mirror to modern society. Many now question the environmental impact of mass production and the psychological effects of an event designed to spur impulse buying.

In response, some companies have taken a stance against the chaos. Retailer REI famously started its "Opt Outside" campaign, closing stores on Black Friday and encouraging customers to spend the day outdoors instead of shopping. This reflects a growing awareness that, for all its excitement, Black Friday also has a darker side in the rush to consume.

Summary

From its murky origins in financial scandal to its transformation into the kickoff of the holiday shopping season, Black Friday’s history is both colorful and complex. What started as a day dreaded by Philadelphia police officers has become a global retail extravaganza, a day of incredible deals, and a symbol of consumer culture. Whether you see it as an opportunity for savings or a cautionary tale of capitalism run amok, Black Friday’s story is far from over, continuing to evolve as it spreads across the world.