Black Friday has been around since 1952, and has evolved into a holiday that is known for its enormous shopping deals. While the nature of the holiday hasn’t changed, the way people shop on Black Friday has evolved significantly in recent years.
The Friday after Thanksgiving has historically been a day full of holiday shopping. Even before Black Friday got its name, companies have consistently seen increased profits on this Friday–the day after Thanksgiving. The name “Black Friday” came from accountants marking companies’ profits in black because of all the holiday shopping activity that took place. To maximize revenue, retailers encouraged spending by putting out enormous sales. Today, Black Friday largely remains unchanged–a day when stores advertise deals and customers are encouraged to go out and shop. But this holiday has encountered changes in the way companies and consumers approach Black Friday.
Even before the pandemic, Black Friday has experienced gradual shifts in consumer and retailer behavior. More and more customers prefer to shop online, and retailers are posting their deals online in response. In 2019, Black Friday surpassed Cyber Monday with the most online shoppers for the first time. According to the National Retail Federation, Black Friday had 93.2 million online customers, while Cyber Monday had 83.3 million online shoppers. This is a result of years of a gradual increase in online shopping as well as an increase in stores releasing more online sales. Another recent change in how stores approach Black Friday include “Black Friday” sales that are offered throughout the entire month of November. As a result, customers are exposed to discounts earlier and earlier in the month. Now, it seems that the terms “Black Friday weekend” and “Black Friday month” are more fitting.
While Black Friday has been evolving in the past few years, there is no doubt that the retail holiday has undergone some major changes during 2020. In the past, online sales on Black Friday have grown by a small margin, from $1.93 billion in 2013 to $7.4 billion in 2019, according to Sleeknote. However, according to the National Retail Federation, money spent on online shopping sales during Black Friday this year has increased to $9 billion, a 21.6% increase compared to 2019. This surge in online shopping is largely due to shoppers’ desire to stay safe at home and avoid the risk of COVID-19 in packed stores and long lines. The CDC’s statement that “going shopping in crowded stores just before, on, or after Thanksgiving ” is a high-risk activity encourages customers to shop in the safety of their home. Furthermore, to limit the number of people inside an enclosed store, retailers are promoting online shopping by increasing online sales. Stores are also extending the time the deals are offered in hopes of lessening the number of people that come into stores. Many companies also found success using an in-store or curbside pickup option. According to Adobe, in-store and curbside pickup increased by 52%, compared to 2019. With the pandemic changing the nature of in-store Black Friday shopping this year, online deals have been the solution for many retailers.
As a result of an increase in online shopping, retail is headed in a new direction. Brick-and-mortar stores are struggling, especially with the COVID-19 pandemic making it harder to shop in-stores. While online sales only made up 14% of total global retail sales in 2019, according to Statista, the number of online retail sales have been on an upward trend. The enormous growth in online shopping may be caused by the pandemic, but the effect will permanently change how people choose to shop. The recent change in Black Friday trends may just be a glimpse of what the future of the retail industry will look like.
Sources:
https://www.thebalance.com/why-is-it-called-black-friday-3305712
https://www.cdc.gov/coronavirus/2019-nCoV/index.html
11 Black Friday Statistics You Need to Know (2020)
https://nrf.com/media-center/press-releases/thanksgiving-draws-nearly-190-million-shoppers
https://www.retaildive.com/news/winners-and-losers-of-black-friday-2020/589634/