According to the National Retail Federation, 200.4 million consumers participated in Thanksgiving weekend sales in 2023. This five-day span includes one of the busiest shopping days in the country. But what’s the story behind Black Friday, and how has it evolved over time?
The Infamous First Black Friday of 1869
The original “Black Friday” dates back more than 150 years, but it had nothing to do with Thanksgiving or holiday shopping. On September 24, 1869, financial turmoil struck, leaving many people in financial ruin.
During Ulysses S. Grant’s presidency, his administration aimed to strengthen the economy by reducing the use of paper currency. The government began exchanging paper money (greenbacks) for a gold-backed currency.
Meanwhile, railway tycoon Jim Fisk and financier Jay Gould devised a scheme to prevent Cornelius Vanderbilt from acquiring the Erie Railroad. They needed substantial funds to counter Vanderbilt’s influence and hatched a plan to manipulate the gold market.
Their strategy involved encouraging investors to buy gold in large quantities, inflating its value before the government could intervene. Once gold prices peaked, they planned to sell for massive profits. With the help of President Grant’s brother-in-law, they persuaded Grant to appoint General Daniel Butterfield as Assistant U.S. Treasurer. Butterfield, in turn, would inform them of the government’s gold sales in exchange for a share of the profits.
The scheme unraveled when Grant discovered their plan through a letter his sister sent to the First Lady. In response, he ordered the immediate sale of $4 million in gold on Friday, September 24, causing prices to plummet and triggering a stock market crash. That day became known as “Black Friday.”
Many investors, having taken out loans to purchase gold, were left bankrupt. Although a Congressional investigation followed, testimony from Grant’s sister and the First Lady was blocked, shielding Fisk, Gould, and Grant’s brother-in-law from charges.
Butterfield lost his position, and Grant’s brother-in-law suffered financial ruin. Fisk faced an even graver fate when another financier shot and killed him. However, Gould profited from the ordeal and gained control of the Union Pacific Railroad.
This historical “Black Friday” had nothing to do with holiday shopping but became infamous for its financial chaos.
The Birth of Today’s Black Friday
The connection between Thanksgiving and Black Friday began when Abraham Lincoln designated the last Thursday of November as Thanksgiving in 1789. This tradition held until 1939 when President Franklin D. Roosevelt altered the holiday in response to the “Buy Now Campaign.”
That year, Thanksgiving fell on the final day of November, limiting the holiday shopping season. Retailers lobbied Roosevelt to move Thanksgiving to an earlier date. On October 31, Roosevelt signed a proclamation shifting Thanksgiving to the second-to-last Thursday in November.
While the adjustment provided an extra week for shopping, it disrupted family vacation plans, leading to the holiday’s return to the last Thursday in 1941. This placement solidified Black Friday as the day after Thanksgiving.
The term “Black Friday” originated in Philadelphia during the 1950s, linked to the Army-Navy football game held the Saturday after Thanksgiving. Local police used the name to describe the chaos caused by heavy traffic and increased shoplifting, requiring officers to work overtime.
Retailers also embraced the term as a reflection of increased sales. During this busy shopping day, businesses often moved from financial losses (“in the red”) to profits (“in the black”). Attempts to rename it “Big Friday” didn’t stick, and by the 1980s, the name gained national recognition as a symbol of massive sales and holiday deals.
How Black Friday Has Transformed
Since the 1980s, the holiday shopping season has become more elaborate. While children once asked for simple toys or games, today’s wish lists include high-priced items like gaming systems, computers, and VR headsets. These expensive products fuel the frenzy of Black Friday sales.
The pursuit of limited-edition toys and electronics has sometimes led to fights and even violence. Fortunately, the trend is shifting, with sales now extending over multiple days rather than being confined to a single day.
Cyber Monday and Beyond
In 2005, the National Retail Federation introduced Cyber Monday, catering to online shoppers with significant discounts. By 2023, shoppers spent $12.4 billion on Cyber Monday, making it a cornerstone of the holiday shopping season.
Small Business Saturday highlights local businesses, encouraging shoppers to support their communities with exclusive deals.
Green Monday, another shopping event, offers last-minute discounts before the holiday shipping cutoff. Free Shipping Day, often around December 14, provides opportunities for shoppers to avoid delivery fees, though shipping delays can pose challenges.
Black Friday remains an iconic part of Thanksgiving weekend. Before diving into the sales, take a moment to enjoy the holiday with loved ones and celebrate this cherished American tradition.