The term “Black Friday” is now synonymous with massive retail sales and the beginning of the holiday shopping season, but its origins tell a much more complex—and at times, much darker—story. While many believe that the day after Thanksgiving was named “Black Friday” because it marks the point in the year when stores shift from operating “in the red” (a financial loss) to “in the black” (a profit), the reality behind the term is far more complicated and involves a history of financial crises, chaos, and even myths of exploitation.
Financial Crisis: The First “Black Friday”
The first recorded use of the term “Black Friday” had nothing to do with shopping. It was instead linked to a financial disaster. On September 24, 1869, two ruthless Wall Street financiers, Jay Gould and Jim Fisk, orchestrated a plot to corner the U.S. gold market. The pair bought massive amounts of gold, driving up its price in an attempt to sell it at a profit. Their scheme was intended to create an artificial shortage, inflating the value of gold to levels that would benefit them handsomely.
However, when President Ulysses S. Grant became aware of the manipulation and began selling off government-held gold to stabilize the market, the bubble burst. The price of gold plummeted, causing stock markets to crash, wiping out the fortunes of Gould, Fisk, and many others in the process. This event became known as “Black Friday,” not because of consumer shopping, but because of the devastating impact it had on the financial market and the widespread panic it caused.
The Retail “Red to Black” Narrative
Despite the original financial association of the term, the modern version of Black Friday as a retail event began to take shape much later. The widely accepted narrative behind the retail version of Black Friday ties it to the accounting practices used by retailers in the 20th century. Retailers traditionally recorded financial losses in red ink, while profits were written in black ink. According to this story, Black Friday marked the point in the year when stores would finally shift from operating at a loss (“in the red”) to making a profit (“in the black”), thanks to the flood of shoppers taking advantage of post-Thanksgiving sales.
However, while this “red to black” theory is now widely accepted, it has been critiqued as a marketing narrative that was heavily promoted by retailers in the 1980s and 1990s. Before that time, the term “Black Friday” had a much more negative connotation, especially in Philadelphia.
The Philadelphia Connection
The earliest use of the term “Black Friday” as it pertains to shopping was not related to Thanksgiving, but to the chaos that surrounded it. In the 1950s, police in Philadelphia began using the term to describe the disorder that descended upon the city the day after Thanksgiving. The city hosted the annual Army-Navy football game on the Saturday following Thanksgiving, drawing large crowds of tourists and suburban shoppers into the city. For local law enforcement, the day was a nightmare. Not only did they have to manage the increased traffic and crowds, but they also had to work extra-long shifts with no opportunity for a holiday break.
The surge of people into the city, combined with the traffic congestion and chaos in stores, led to an uptick in shoplifting, which only added to the police burden. By 1961, the term “Black Friday” had become a common shorthand for the mayhem that Philadelphia’s police officers had to deal with. Local retailers, however, were not thrilled with the negative connotations associated with the term and attempted to rebrand it by promoting a more positive moniker—”Big Friday.” Unfortunately, the effort failed, and the name continued to be associated with the chaos.
Retailers Reclaim Black Friday
It wasn’t until the late 1980s that retailers across the country began to embrace Black Friday, transforming it from a day of negative connotations into a marketing opportunity. Retailers turned the term on its head, using the “red to black” narrative to create a more favorable image. They began to emphasize that Black Friday was the day when stores went from being in debt to being in the black due to the surge in sales.
This narrative resonated with both consumers and businesses alike, and by the 1990s, Black Friday had firmly taken root as the unofficial start of the holiday shopping season. Retailers began opening earlier and earlier on the day after Thanksgiving, with many offering doorbusters and deep discounts to draw in customers. The tradition of waiting in long lines, sometimes overnight, to grab the best deals became a hallmark of the Black Friday shopping experience.
Black Friday’s Modern Evolution
Today, Black Friday has evolved into much more than a single day of sales. It has morphed into a multi-day shopping event that spans the entire weekend. The rise of online shopping has also expanded the event beyond brick-and-mortar stores, with many retailers offering online discounts and promotions on the same day. Cyber Monday, the Monday following Thanksgiving, emerged in the early 2000s as a separate but related shopping event focused on online deals.
In recent years, the term “Black Friday” has also been extended to encompass even earlier sales, with stores often opening on Thanksgiving evening or even earlier in the day. The rise of “early bird” deals and pre-Black Friday sales have blurred the lines, making the entire weekend a frenzy of consumer activity.
Myths and Controversies
Alongside the mainstream narrative, some darker myths have emerged about the origins of Black Friday. One particularly disturbing claim is that Southern plantation owners used to offer discounts on enslaved people the day after Thanksgiving, calling it “Black Friday.” This version of events has no historical basis, but it has nevertheless found traction in certain circles. In fact, there is no evidence to suggest that any such practice ever existed, and this version of Black Friday’s origins has been widely debunked by historians.
While the Black Friday we know today is a retail juggernaut that draws millions of shoppers each year, its origins are rooted in financial crisis, chaos, and marketing reinvention. From the 1869 gold market crash to the chaos of 1950s Philadelphia, and eventually to the consumer-driven shopping frenzy of the modern era, Black Friday’s evolution is a story of economic booms and busts, cultural shifts, and the power of branding. Whether you see it as a time to snag great deals or a reflection of consumerism at its peak, Black Friday’s history is anything but straightforward.
source: Forstarmedia
