Black Friday is the following Friday of the American Thanksgiving. It is a day dedicated to shopping all over the United States. Retailers usually offer enormous discounts on Balck Friday to kick off the holiday season.
What is Balck Friday?
If you are not from the United States, chances are you have only heard the term “Balck Friday” in passing conversations or in movies or TV shows. It is the busiest shopping day for the people in the United States when all businesses offer the most incredible deals on every product.
Businesses offer these deals to encourage shoppers to buy more at the beginning of the holiday season. This period is crucial for the economy, especially for retailers who deal with seasonal products.
According to the NRF (National Retail Federation), about 84.2 million people have shopped in stores 2019 on Black Friday. Combined with 37.8 million people who shopped on Thanksgiving, the total becomes a giant 122 million people who have shopping during the two days.
While 2019 saw the shopping records set, the estimates are not too optimistic in 2020. This year’s holiday season will be significantly different from any previous year in memory due to the pandemic situation.
A survey by NRF in October 2020 found that people are willing to spend around 1% less than they did last year. The survey also found that almost 53% of people say they plan to spend more this year because they won’t be traveling during the holidays.
How does Black Friday Work?
Black Friday truly marks the beginning of the holiday season in the United States. It is a crucial day from a business standpoint. According to NRF’s data, for many retailers around the country, the holiday season is the time of year where they generate about 20% of their annual sales. It is an incredibly important time for toy and game stores, as they tend not to generate much revenue at other times.
Many retailers being their Black Friday sales on Thanksgiving Day and keep the deals running throughout the weekend. In the holiday season of 2019, people spent an average of $361 from Thanksgiving through Cyber Monday. For context, people spend about $1000 during the entire holiday season in 2018.
In 2020, people plan to spend roughly $997 on gifts, food, decoration, and other items for themselves and their families.
Is Balck Friday a Public Holiday?
People and businesses observe Black Friday on the Day After Thanksgiving, a public holiday in more than 20 states. The day following Thanksgiving is also a state holiday in Georgia, commemorating the birthday of General Robert E Lee.
Colleges, universities, and schools all over the country remain closed for the entire Thanksgiving weekend.
Effects of Balck Friday on online sales
The Thanksgiving weekend not only increases the sales volume of brick and mortar shops, but online businesses also see a significant boost in their sales numbers. Black Friday sales and promotions affect the following:
High Traffic challenge
Online stores often invest a massive sum of money in promoting their website to generate more sales and drive traffic to their online stores. However, they tend to forget about the high loads on their side. Most small online stores typically went down during surge periods on Black Friday because businesses don’t properly prepare them for handling multiple thousands of people at once.
The downtime results in immediate loss as the customer will buy the things they were looking for from another place, but it will also impact the website’s reputation. Failing to prepare for overloading at such a crucial time leads to revenue loss for the retailers. Experts estimate that unplanned downtime can cost a business roughly around $270m annually.
Advertising tip sites
These are the websites that provide information relating to the day-after-Thanksgiving offer up to a month in advance. They usually publish the test listings of the items along with pictures of the original ad circulars. These sites typically acquire these adverts from the leakers inside the corporations, but businesses often intentionally release this information to give customers insights and time to prepare.
The term “Cyber Monday” is not as widespread as Black Friday, but it is also a popular shopping day. The Cyber part of Cyber Monday refers to its connection with the internet. It originated in the early days of the internet when people returning to work use their office broadband connection to shop online after Thanksgiving. Retailers quickly adapted to this new wave of shoppers and started providing them with offers and deals.
Cyber Monday is gradually growing in popularity because it offers the convenience of finding the best deals from home. The trend of online offers is not limited to just Cyber Monday; retailers recognize the internet’s power. They offer discounts and other enticing offers online starting from Thanksgiving day and even earlier in some places.
With more and more people becoming comfortable to shop online, Cyber Monday is gaining unprecedented popularity. Especially in a year like this, where people are not going out much and actively avoiding crowds, online shopping seems to be the best thing. Experts estimate that due to COVID-19, the 2020 holiday season will see the highest number of people shopping online. As online shopping is becoming more convenient and reliable, people are ordering stuff throughout the week following Thanksgiving weekend. The shift in shopping patterns makes it so that it is not only on Black Friday or on Cyber Monday that people are shopping. They have converted the whole week into Cyber Week.