Everyone knows that Black Friday is the day after Thanksgiving when every store under the sun has a massive sale and people get up at the crack of dawn to get the best deals, but where did the term Black Friday come from? The term was used to describe the day that kicked off the holiday shopping season and retailers went from losing money (shown in red on most financial statements) to making a profit (which is shown in black).
From a numbers standpoint, the holiday shopping season accounts for 25% or more of a retailer’s annual sales. According to the National Retail Federation, holiday sales in 2016 reached $655.8 billion, which was up 3.6% year over year. For 2017, sales are expected to increase between 3.6-4.0% to $678-$682 billion.
The total dollars spent through online and retail locations on Black Friday can also help provide an indication of how strong the economy is and what consumer’s spending appetites are given that personal consumption accounts for 70% of GDP. So whether you are braving the mad dash at the store or ordering something off your phone or tablet from the comfort of your home, your dollars spent provide more than just what you bought. They also provide a wealth of data for economists.
