Black Friday sales

27 Nov 2024

From a retail afterthought to a global shopping frenzy, Black Friday sales are rapidly gaining traction here in Australia.

Black Friday, the day after Thanksgiving in the United States, has become synonymous with massive discounts, long lines and frantic shopping sprees. But while it is now one of the busiest retail days of the year across the globe, the history of Black Friday reveals a much more nuanced story of retail evolution and consumer culture.

The term ‘Black Friday’ first appeared in the 1960s in Philadelphia, where it was initially used by police officers to describe the chaotic, overcrowded streets after Thanksgiving. The surge of shoppers heading into the city created traffic jams and public disorder, making it a challenging day for law enforcement. Over time, however, the meaning of the term evolved.

By the 1980s, retailers and marketers had redefined Black Friday as a positive commercial event. In accounting terms, businesses would traditionally operate ‘in the red’ for much of the year until the holiday shopping season kicked off. Black Friday marked the point when stores would finally move ‘into the black,’ signifying a shift from losses to profits. Retailers recognised the potential for huge sales on this day, and by offering large discounts they encouraged consumers to start their holiday shopping early.

As the years went on, Black Friday sales grew exponentially. The rise of consumerism in the post-WWII era, coupled with increasingly aggressive marketing tactics, helped build the phenomenon into what it is today. The introduction of early opening hours, first on Friday morning and later Thursday evening (leading to the creation of ‘Thanksgiving Day sales’), made Black Friday even more of an anticipated event.

In the 2000s, the digital revolution further transformed the Black Friday landscape. With the rise of e-commerce, Cyber Monday was introduced in 2005 as a way to capture online shoppers, and the weekend became a multi-day event, stretching sales through the entire week. This shift paved the way for online retailers like Amazon to take centre stage in Black Friday promotions, offering steep discounts on electronics, home goods and more, without the need for physical crowds.

Today, Black Friday has gone global, with many countries beyond the US participating in the retail extravaganza. In Australia, Canada, and the UK, retailers have adopted the day as a way to boost end-of-year sales, even though it’s not tied to any local holiday.

But how does this shopping extravaganza stack up financially against our beloved Boxing Day sales here in Australia?

While Boxing Day has long been a major retail event in Australia, with stores offering post-Christmas clearance sales, Black Friday is quickly catching up. According to recent data, Black Friday sales in Australia have seen a significant increase in both consumer spending and online traffic, especially in the tech, fashion and home goods sectors. In 2023, Australian consumers spent more than $3.4 billion during the Black Friday weekend, a sharp rise from previous years.

Boxing Day sales, however, still hold strong as one of our largest retail events. Historically, Australians have flocked to stores for post-holiday bargains, with 2023 sales reaching around $2.5 billion.

While both events now attract comparable numbers, Black Friday’s rise is particularly notable in the e-commerce sector, where online shopping dominates. It is rapidly becoming a formidable contender to Boxing Day, driven by the growing trend of online shopping and heavy retailer promotions. And the competition between these two retail giants is only set to intensify!