Black Friday: The American Purge

Black Friday arrives every year, and with it sometimes comes a bit of misinformation. As shoppers prep their wish lists, separating the Black Friday facts from fiction can make the day that much more successful.

It makes sense that the term “Black Friday” might refer to the single day of the year when retail companies finally go “into the black” (i.e. make a profit). The day after Thanksgiving is, of course, when crowds of turkey-stuffed shoppers descend on stores all over the country to take advantage of the season’s biggest holiday bargains. But the real story behind Black Friday is a bit more complicated—and darker—than that.

The first recorded use of the term “Black Friday” was applied not to holiday shopping but to financial crisis: specifically, the crash of the U.S. gold market on September 24, 1869. Two notoriously ruthless Wall Street financiers, Jay Gould and Jim Fisk, worked together to buy up as much as they could of the nation’s gold, hoping to drive the price sky-high and sell it for astonishing profits. On that Friday in September, the conspiracy finally unraveled, sending the stock market into free-fall and bankrupting everyone from Wall Street barons to farmers. Ah the price of greed.

As the story goes: after an entire year of operating at a loss (“in the red”) stores would supposedly earn a profit (“went into the black”) on the day after Thanksgiving, because holiday shoppers blew so much money on discounted merchandise. Though it’s true that retail companies used to record losses in red and profits in black when doing their accounting, this version of Black Friday’s origin is the officially sanctioned—but inaccurate—story behind the tradition.

The true story behind Black Friday, however, is not as sunny as retailers might have you believe. Back in the 1950s, police in the city of Philadelphia used the term to describe the chaos that ensued on the day after Thanksgiving, when hordes of suburban shoppers and tourists flooded into the city in advance of the big Army-Navy football game held on that Saturday every year. Not only would Philly cops not be able to take the day off, but they would have to work extra-long shifts dealing with the additional crowds and traffic. Shoplifters would also take advantage of the bedlam in stores to make off with merchandise, adding to the law enforcement headache.

By 1961, “Black Friday” had caught on in Philadelphia, to the extent that the city’s merchants and boosters tried unsuccessfully to change it to “Big Friday” in order to remove the negative connotations. The term didn’t spread to the rest of the country until much later, however, and as recently as 1985 it wasn’t in common use nationwide. Sometime in the late 1980s, however, retailers found a way to reinvent Black Friday and turn it into something that reflected positively, rather than negatively, on them and their customers. The result was the “red to black” concept of the holiday mentioned earlier, and the notion that the day after Thanksgiving marked the occasion when America’s stores finally turned a profit. (In fact, stores traditionally see bigger sales on the Saturday before Christmas.)

The Black Friday story stuck, and pretty soon the term’s darker roots in Philadelphia were largely forgotten. Since then, the one-day sales bonanza has morphed into a four-day event, and spawned other “retail holidays” such as Small Business Saturday/Sunday and Cyber Monday. Stores started opening earlier and earlier on that Friday, and now the most dedicated shoppers can head out right after their Thanksgiving meal. According to a pre-holiday survey this year by the National Retail Federation, an estimated 135.8 million Americans definitely plan to shop over the Thanksgiving weekend (58.7 percent of those surveyed), though even more (183.8 million, or 79.6 percent) said they would or might take advantage of the online deals offered on Cyber Monday.

Myths

Everything Is on Sale on Black Friday

One of the biggest misconceptions about Black Friday is that everything is on sale. In fact, there are several items that aren't worth it because you can get them for less in December or after Christmas. For example, deeper discounts on toys appear in mid-December, said Ivy Chou, marketing and public relations director at DealsPlus. "That's when retailers have their last push to buy," she said. Prices won't drop much on winter gear, either, until January. And don't expect to see jewelry or high-end laptop computers among the best Black Friday deals.

Black Friday Is Always the Best Time to Shop

Black Friday is no longer the best day to get the best deals. "Thanksgiving is in fact the best day of the year for deals and discounts," said Benjamin Glaser, formerly an editor for DealNews. "Cyber Monday is No. 2." However, true deal hunters should shop on all three days to get the best prices, Glaser said. "But shopping in store early on Friday — or even late on Thursday — is no longer completely necessary," he said.

Every Black Friday Sale Is a Great Deal

Consumers also need to be aware that many stores inflate the original prices on items to make it look like you're getting the best Black Friday deals, said Kristin Cook, managing editor of Ben's Bargains.

"Kohl's, JCPenney, Toys"R"Us and Macy's are all notorious for doing this," she said. "Sure, 80 percent off a jacket sounds like an amazing deal, but there's no way a jacket has ever sold for $150 at a store like Kohl's."

Black Friday Always Starts on Friday

Black Friday began when retailers started offering discounts to compete for consumers who were off work the Friday after Thanksgiving and could do their holiday shopping, said Glaser. However, the sales begin before Friday now. "[Black Friday] now essentially begins on the Monday before Thanksgiving and goes through the Friday after Cyber Monday," Glaser said. It's important to keep this in mind because you might need to head to a store or shop online before Black Friday to get the best deals on the items on your holiday gift list. Or, you might be able to wait for sales from online retailers the Monday after Thanksgiving — Cyber Monday. To find out when you can get the best Black Friday deals on the items you want, check retailers' Black Friday and holiday sales ads on sites such as DealNews and BFAds to see which days items will be marked down. You also can sign up for deal alerts on sites like Slickdeals to be notified when a deal is available for a product you want.

You Have to Shop in Stores to Get the Best Deals

You don't have to brave crowded stores to take advantage of all of the sales on or around Black Friday. "While there will be some enticing sales on Thanksgiving and Black Friday, most retailers will be offering the majority, if not all, of the sales online," said Howard Schaffer, general manager of Offers.com. In fact, many Black Friday deals will begin online Wednesday night prior to the in-store sales, Cook said.

Shopping online might help you save money because you won't have to pay for gas to get to stores. Plus, you can avoid the tricks retailers use in stores to get you to spend more, such as strategic product placement and calming music. However, if you shop online, make sure you opt for retailers that offer free holiday shipping to avoid this extra cost, Schaffer said.

You Should Get Up Early to Score Doorbusters

Black Friday is known for doorbuster deals — items that are in limited supply and sold at deep discounts at certain times. These are frequently the deals people line up outside stores before the crack of dawn to get.

Often these doorbusters are just gimmicks to get people into stores. "As we've found after speaking to psychologists and researchers, limited supplies and time frames are powerful motivators for getting people to spend," Glaser said.

Because many retailers now offer doorbusters online, you can avoid camping outside a store and pushing your way through the crowds to get the discounted items you want. But should you wait beside your computer in the late or early hours to try to snag a limited-time Black Friday deal? Not necessarily.

"Amazon's lightning deals are both the best and worst offenders," Glaser said. "They offer some truly amazing prices, but they are available only for an hour, or more accurately, until they sell out — which is often just seconds. That drives a lot of people to buy first and ask questions later."

Black Friday Is Dead

Because retailers have spread out Black Friday sales over several days and online — and have even started offering pre-Black Friday sales in early November — you shouldn't assume the shopping holiday is dead. You'll still find the lowest prices of the year on many products on Black Friday, Glaser said.

Plus, the in-store shopping experience will remain, he said. "For many, it is a matter of tradition," Glaser said. "If you get a thrill in finding the last toaster for $4.99 at Kohl's or scoring one of 50 doorbuster TVs at Best Buy, then go forth and shop in-store," Schaffer said. But research products before doing your Black Friday shopping in a store — or online — to make sure you're getting a quality, brand-name item at a good price rather than something that's cheap because it's inferior.

"The best sales will be on brand-name items that are sold at multiple stores," Cook said. "These items have a real MSRP that can be verified." You can use the model numbers listed in retailers' ads or on their websites to find suggested retail pricing to compare discounts, read product reviews and compare specifications with similar products to pinpoint the best Black Friday deals.