[News Terms] How Did Black Friday Originate?

Shoppers gathered in Manhattan, New York during last year's Black Friday / Photo by Yonhap News

November 25th is 'Black Friday,' the day when the largest annual sales event takes place across the United States. But why is it that the U.S. holds such a massive discount event every year in late November? And how did the name 'Black Friday' come about?

Originated as American Traffic Police Slang... Evolved into a Sales Event Linked to Consumer Culture

In the U.S., the fourth Friday of November, the day after Thanksgiving, is called Black Friday. It is unclear exactly when this term began to be used. However, according to the New York Times (NYT), which compiled opinions from American historians last year, it is known to have originated as slang first used by traffic police in Philadelphia, Pennsylvania, during the 1960s.

However, the term did not carry a positive meaning. The day after the Thanksgiving holiday inevitably saw crowds of workers, shoppers, tourists, and football fans flooding the city, turning it into chaos. As a warning, the police exchanged the slang term 'Black Friday' among themselves.

Large department stores that appeared in the United States after the 1940s. / Photo by DepartmentStoreHistory.net capture

Meanwhile, after World War II, a postwar economic boom began in the U.S. and Europe, leading to the emergence of mass consumer culture. From the mid-20th century, Americans started purchasing goods in large quantities at big department stores rather than markets or grocery stores. Department stores and shopping centers adapted to this new consumption pattern by holding large-scale discount events on Black Friday to clear accumulated inventory. Since then, Black Friday has become a nationwide discount event in the U.S.

The World's Largest Discount Event with Over 1,000 Trillion Won in Spending

Black Friday is a day when consumers can buy goods at lower prices than usual, but it is also a crucial time for the U.S. retail industry to clear bad inventory and turn their financial status into the black. The amount Americans spend in a single day is staggering. According to the National Retail Federation (NRF), total retail sales during this year’s Black Friday holiday are expected to reach $942.6 billion (approximately 1,282 trillion won).

A store in California, USA, participating in last year's Black Friday sale. / Photo by Yonhap News

As a result, Black Friday is an opportunity not only for Americans but also for overseas consumers and retail companies to overcome economic downturns. This is why every year, overseas direct purchase sites and e-commerce platforms enthusiastically hold sales events or special product promotions during Black Friday.

Today, Black Friday is not just a sales event but also a key indicator of the U.S. retail economy and a stage in the economic cycle. Typically, Black Friday is the day when the most consumer goods are sold in the U.S. annually, and it marks the beginning of the 'shopping season' that continues until Christmas on December 25th. If retail sales on Black Friday this year are weaker than the previous year, it can be predicted that a significant retail downturn will begin next year.

Similar Events Abroad Like Guanggunjie and Boxing Day to Stimulate Domestic Consumption

Other countries also have commemorative days similar to Black Friday. China celebrates November 11th every year as 'Guanggunjie' (Singles' Day). Originally a day to celebrate single people, since the 2000s, online shopping malls like Alibaba and Taobao have held special discount events, turning it into China’s largest annual shopping day.

In Europe, including the UK, the day after Christmas is celebrated as 'Boxing Day,' with concentrated year-end sales events. In Korea, the 'Korea Sale Festa,' modeled after Black Friday, is held annually during the first two weeks of November. This event was planned jointly by the public and private sectors during the Park Geun-hye administration to stimulate consumption after the MERS outbreak severely impacted shopping districts. This year, it was held from November 1st to 15th.