The Business Behind Black Friday: From Doorbuster Deals to Digital Daze
Stéphanos Spyrou
Multi-Award Winner Marketing & Advertising | ADC*E Judge | Entrepreneur Advocate | Music Background
Remember when Black Friday was the one day a year you'd semi-willingly wake up at the crack of dawn to wrestle a stranger for a discounted toaster? Ah, the good old days!
Now, it's a month-long online extravaganza where your inbox is flooded with "Can't Miss" deals every 30 seconds - from your local butcher, to your neighborhood take out; they all seem to love using Black Friday as an excuse. So, what happened? And how did this US export take over European soil?
Let's dig a little deeper to find out if all this is worth the hype, and if the math is mathing.
??? The Ghost of Black Friday Past
Originally, Black Friday was as American as apple pie - or perhaps more accurately, as American as trampling your neighbor for a flat-screen TV. The term "Black Friday" was first used in the 1960s in Philadelphia to describe the heavy and disruptive pedestrian and vehicle traffic that would occur on the day after Thanksgiving. Retailers later rebranded it to reflect the point in the year when stores go from "in the red" (losing money) to "in the black" (profitable).
Back then, it was a single day of doorbuster deals and, let's be honest, mild hysteria. Families would map out their shopping routes like military strategists, and the phrase "shop 'til you drop" was taken quite literally.
?? Black Friday Goes Global
Fast forward to today, and Black Friday has been exported globally faster than a viral TikTok dance. Countries that don't even celebrate Thanksgiving are embracing the shopping spree.
In the UK, Black Friday sales skyrocketed from ￡1.5 billion in 2015 to ￡8.57 billion in 2022, according to Statista. That's a whopping 471% increase in just seven years! Germany saw online Black Friday sales reach €3.7 billion in 2022, up from €2.4 billion in 2019. Even France, known for its resistance to American cultural imports, reported that 42% of French consumers participated in Black Friday shopping in 2021, as per Deloitte.
Pre-COVID, Black Friday was already making international waves, but the pandemic accelerated its global dominance, and with lockdowns forcing consumers online, countries like Italy and Spain saw e-commerce Black Friday sales increase by over 50% between 2019 and 2021.
?? From Queues to Clicks
The biggest shift? Black Friday has moved online. In 2019, U.S. online Black Friday sales hit $7.4 billion, according to Adobe Analytics. Fast forward to 2022, and that number soared to $9.12 billion, marking a steady climb even before the pandemic. Cyber Monday who? Every day in November now seems to be a "must-click" day.
In the UK, online sales accounted for ￡5.6 billion of the total Black Friday spending in 2022, up from ￡3.8 billion in 2019. That's a 47% increase in online sales in just three years. Shoppers are swapping camping chairs for couches, and the infamous in-store stampedes have been replaced with website crashes and "Out of Stock" notifications.
?? The Absurdity of It All
Let's be real: Black Friday has become a month-long ordeal. Pre-Black Friday sales start in October, and Post-Black Friday deals run well into December. It's like that guest who just won't leave the party. Remember when it was just one day? blows the dust off a landline telephone
And the deals? Sometimes they're not even that great. A study by 'Which?' in the UK found that 85% of Black Friday product prices were the same price or cheaper at other times of the year. In the U.S., Salesforce reported that global discount rates averaged 24% in 2022, barely up from 23% in 2019. So, are we really snagging a bargain, or just getting caught up in the hype?
?? Does Black Friday Actually Work?
From a retailer's perspective, Black Friday can boost sales volumes but often at the cost of profit margins. Discounts can be steep, and the competition is fierce. Some businesses have started to question the viability of participating. REI, the outdoor retailer, famously closes its doors on Black Friday, encouraging people to spend time outdoors instead—a campaign they call #OptOutside.
For consumers, it's a mixed bag. While some shoppers score big on electronics and appliances, others fall victim to impulse buying. According to a survey by Finder, Americans were expected to spend $148.5 billion on impulse purchases during Black Friday 2022. That's a lot of waffle makers and novelty socks!
?? Key Takeaways for Business Leaders and Marketers
Bonus Tip: Sustainability Matters: A growing number of consumers are wary of overconsumption. Incorporating sustainable practices can win over this demographic.
?? The Global Excuse We Didn't Know We Needed
So why has Black Friday become a global export? Perhaps it's because it fills a universal need: the thrill of a good deal (or perceived good deal). It's consumerism's Super Bowl, and everyone wants a piece of the action—even if they're not entirely sure why.
Black Friday has transformed from a single day of chaotic shopping into a global, weeks-long event that's as exhausting as it is exciting. Does it work? Well, that depends on who you ask. For retailers, it's a chance to boost sales volumes, though not always profits. For consumers, it's a mixed blessing of deals and potential buyer's remorse.
One thing's for sure: Black Friday isn't just a day anymore—it's a season, a state of mind, and perhaps the world's most widespread excuse to indulge in a little retail therapy. So, whether you're braving the (virtual) crowds, remember that the best deal might just be sitting this one out.