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Some may know about Black Friday, some may not. In this article, tradingcritique.com explains Black Friday with its history. Let us also see how Black Friday impacts the activities of consumers, retailers, and traders.
What is Black Friday
Black Friday is a famous shopping day with many discounts available worldwide mostly in American and European countries. Now the influence of Black Friday is also seen in Asian countries. Both brick and mortar stores and online Retailers Provide good discounts on Black Friday.
The retailers provide a really good number of deals on Black Friday. Many consumers line up before the physical store/brick and mortar retail stores to get the best deals on Black Friday. The customers even line up from midnight in front of the stores.
When is Black Friday
Black Friday is the one that falls after Thanksgiving Day. Thanksgiving Day is celebrated mostly on the fourth Thursday of every November month. Friday which comes after Thanksgiving Day is Black Friday.
Black Friday is also an indication of the start of celebration sales. The Christmas shopping deals and New Year shopping deals start with Black Friday. Because of the high number of sales during this period, this quarter of the financial year is called the golden quarter.
The Monday which follows up to Black Friday is called a Cyber Monday. This day is famous for online shopping deals provided by online retailers such as Amazon. The Best offers for the year in the online retail stores are given during cyber monday.
Starting from Black Friday day till cyber-Monday, the full weekend is full of discount offers provided for various products such as clothes, mobile phones, home appliances, electronic items, etc.
The sale discounts continue till New Year. So, from Black Friday the period for the shopping of various celebrations such as New Year and Christmas starts.
The below table gives the dates of Thanksgiving Day, Black Friday and Cyber Monday for the years 2018 to 2028.
Table 1: Dates of Thanksgiving Day, Black Friday and Cyber Monday from 2018-2028
| Years | Thanksgiving date (Thursday) | Black Friday date | Cyber Monday date |
|---|---|---|---|
| 2018 | November 22 | November 23 | November 26 |
| 2019 | November 21 | November 22 | November 25 |
| 2020 | November 26 | November 27 | November 30 |
| 2021 | November 25 | November 26 | November 29 |
| 2022 | November 24 | November 25 | November 28 |
| 2023 | November 23 | November 24 | November 27 |
| 2024 | November 28 | November 29 | December 2 |
| 2025 | November 27 | November 28 | December 1 |
| 2026 | November 26 | November 27 | November 30 |
| 2027 | November 25 | November 26 | November 29 |
| 2028 | November 23 | November 24 | November 27 |
Why is Black Friday named so? – It’s History
Prominent one reason why Black Friday was named so is not available. Many reasons are given for the naming of Black Friday.
The first usage of the term Black Friday was due to a stock market crash that happened on September 24, 1869. The crash was because of 2 investors named Jay Gould and Jim fisk who tried to increase the price of gold. It turned negative causing a stock market crash.
Next in the 1950s, and the Philadelphia police used the term Black Friday as there was much crowd between Thanksgiving Day and the Army-Navy game. More people, tourists, Shoppers flooded the city, and it was difficult for the police to control. The police worked more than 12 hours a day during this weekend, and it was tiring for them. So, they named this Friday to be Black Friday.
In accounting, profits are written in black ink and losses are written in red ink. The Friday after Thanksgiving is the day where the retailers can see good profits. Due to the increased amount of sales during that Friday it was named Black Friday. From the 1980s this practice is being followed till now.
Black Friday is also getting important in Islamic nations such as Pakistan. Because of the good shopping deals, they like to name Black Friday as White Friday because their religion specifies white as a symbol of wealth, prosperity and positivity.
Significance of Black Friday
Black Friday benefits a lot of people and also retail companies. Definitely, it is a day with heavy money flow.
Even stock trading and other kinds of trading has little benefits from Black Friday. Let us see the significance of Black Friday from the views of consumers, retailers and traders.
For consumers
Consumers can get the best prices for the products they like to buy on Black Friday. They can save a lot of money by purchasing products on Black Friday. But it takes more effort to buy Products on a black Friday in both physical and online stores.
In physical stores/bricks and mortar stores the consumers need to line up with the crowd and patiently wait to even get inside the stores. Many accidents have occurred because of the crowd that was present during Black Friday to do shopping.
In online stores, the consumers should get the deals as soon as they’re available on Black Friday and Cyber Monday. Sometimes the deals may get over in a short span of time. As many consumers may visit the online store’s website it may crash sometimes. Consumers may also face many technical issues. So getting a deal during Black Friday and Cyber Monday is really a piece of luck for the consumers.
To get the best deals during Black Friday and Cyber Monday you need to put in some hard work and give a little more effort. Sometimes your luck and many times your efforts work to save a lot of your money during Black Friday. Follow some strategies to get the best offers during black friday and cyber monday.
For Retailers
Retailers will wait for this season to arrive. Black Friday is the starting of the festive season for the retailers where they see higher percentage of sales. They may even plan a whole year for preparing for black Friday sales and sales after it which continues for a month.
Though the retailers provide discounts for the products, they know to make profits. The number of products sold during this period is more when compared to other months.
For Traders
Traders see as an opportunity to do trading on Black Friday. But then Black Friday has a little significance on trading. Stock trading is the one that is most impacted by Black Friday.
In accordance with the sales that happened in some retail companies on Black Friday the stocks of these companies may see some increase or decrease in the stock prices. Traders use this opportunity for their profit.
But the sales on Black Friday has very less significance on the stock prices of the retail companies. Because the impact of the stock prices can be seen only after the report of the sales on Black Friday is available.
Stock markets are open only for half a day on Black Friday that is till 1 PM. Due to this decreased stock market timings, there is more trade activity within this time. This makes the spreads tighter and specific strategies should be followed to succeed from the stock trades. Going short works well indulging in stock trades during Black Friday.
Some of the stocks which you should consider to trade on Black Friday are Amazon, Best Buy, CVS, Apple, Home Depot, Target, Walmart, Walgreens, Costco, etc.
How to prepare for a Black Friday?
Preparing for Black Friday differs for different individuals as different kinds of people get benefited from Black Friday. As seen in the above section consumers, retailers, traders are the important people who get benefited from Black Friday. So each of them should have different plans to profit from Black Friday.
Each of the specific plans for Black Friday should depend on the activity such as,
Let us see the steps you should follow to buy, sell and trade during Black Fridays below.
Steps a Buyer should follow for Black Friday
Buyers or consumers can profit a lot from Black Friday by doing a little research and putting in some effort.
Follow the steps to prepare for Black Friday as a buyer,
Steps a Retailer should follow for Black Friday
Retailers are the ones which make these black Friday sales possible. It takes much time, effort and expertise to set up for Black friday sales.
Retailers should follow the below steps to prepare for Black Friday sales,
Steps a Trader should follow for Black Friday
The trading field is completely different compared to buying and selling.
Follow the below steps as a trader to profit from Black Friday,
Impact of COVID-19 on Black Friday
COVID – 19 has impacted the lives of all the people around the world in some or the other way. In the same way, Black Friday of 2020 was also affected by COVID-19. The Brick and mortar shops in many places were not able to open the shops themselves on Black Friday.
Online shops were able to sell some and offer through discounts. But many people were not in a happy mood to buy things. November 27, 2020, Black Friday was not a happy shopping day like the other years. Surely there were fewer sales.
Things are getting back to normal because of the covid vaccination drives across the countries. Let us hope for the November 26, 2021, Black Friday to be a normal day with shopping discounts with a balanced situation for the consumers and retailers. Only if the COVID – 19 situation subsides there can be proper sales during Black Friday.
Advantages and Disadvantages of Black Friday sales
Though Black Friday offers great discounts it has its pros and cons. Let’s see about its advantages and disadvantages in the below table.
Table 2: Advantages and Disadvantages of Black Friday sales
| Advantages of Black Friday Sales | Disadvantages of Black Friday Sales |
|---|---|
| More discounts and offers are given by retail stores. | Many consumers will compete to get the offers. |
| Available in both Online and Direct retail stores. | Physical stores can be flooded with the crowd. |
| High sales happen in a day. | Online store websites may get high traffic leading to a crash of the website. |
| Black Friday sale is the start of festive sales for Christmas and New year. | All consumers may not get an equal opportunity of the discounts |
| Best time to get the best rate for the products. | Direct sales are impossible during the covid-19 time. |
| Traders can benefit from the short selling of stocks. | Just Black Friday sales do not impact the price of the stocks of retail companies a lot. |
In a Nutshell – Black Friday
Black Friday is a great day for sales. It has significant importance among consumers and retailers worldwide. You also try and grab good deals during Black Friday sales.
Do you follow any specific strategies to grab good deals for Black Friday? If so comment your answers below.
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