Enterprising Investor Forum

Black Friday Explained Friday, November 23, 2007

OK, granted, this might not be a very original post but quite a few people are still confused by this term and what it actually means.

Black Friday is the day after Thanksgiving and considered the beginning of the Christmas shopping season. It is not an official holiday but most companies give their employees the day off (naturally, not the retailers) and the markets are only open until 1 o’clock. Many large retailers open as early as 5 a.m. and it is not uncommon for customers to spend 12 hours in front of the stores – waiting for the open – to make sure they are the first to take advantage of special deals offered on the day.

The term “Black Friday” was originally used because the sheer sales volume of the day meant that this was the first day in which the retailers started to turn a profit and were therefore in the “black”. Despite the fact that most people – including the media – refer to this day as the busiest shopping day of the year, this is not always true. Whilst it may be the busiest in terms of traffic, the busiest day in terms of sales volume is usually the Saturday before Christmas.

Enjoy your shopping!