The image of unusually agitated people fighting over cheap televisions has become an enduring image of Black Friday. The now legendary day, which falls on November 29th in the UK this year, is a defining event in the shopping calendar, drawing millions of shoppers hungry for steep discounts.
But where did it all come from? In this article, we’ll look at how Black Friday started, how it’s impacting the UK retail sector – and what you can do to prepare your business for a frenzy that would put a school of sharks to shame.
The origins of Black Friday
It’s perhaps no surprise that Black Friday started in America, with the day falling on the Friday after Thanksgiving and signalling the official start of the holiday shopping season. While that may sound simple enough, the term itself has a complicated history.
Black Friday was first coined in 1869 to describe a financial crisis triggered by speculators Jay Gould and James Fisk, who attempted to corner the gold market, leading to a market collapse on September 24, 1869. Decades later, in the 1950s, the term underwent a change of meaning when factory managers used it to describe the day after Thanksgiving when workers would often call in sick to extend their holiday.
The 1960s saw Philadelphia police adopt the term to describe the chaos of post-Thanksgiving traffic and shopping. It wasn’t until the 1980s that Black Friday adopted its current retail industry meaning. With the ‘black’ referring to profitability (being “in the black” as opposed to “in the red”), the term finally matured into a moniker that described a surge in consumer spending.
Black Friday in the UK
From skateboards to the Atkins Diet, there is no shortage of US cultural phenomena that have hopped across the Atlantic – and Black Friday is no exception. Its journey to the UK began when global retail giants like Amazon introduced the concept to British shoppers in 2010..
The event truly gained momentum, however, in 2013 when Asda (owned by US retail giant Walmart) launched in-store Black Friday sales, attracting vast crowds as a result. By 2014, Black Friday had firmly established itself as a key event for UK consumers, with many major retailers, including John Lewis and Argos, joining the movement. The popularity of Black Friday in the UK has only grown since, with UK consumers spending an estimated £10 billion during the 2023 Black Friday period (£2.5 billion of which was spent in just one day).
That said, Black Friday is not without its critics. Some retailers, like Marks and Spencer’s CEO Steve Rowe and FatFace CEO Anthony Thompson, have expressed concerns over its impact on consumer behaviour and business profitability. They argue that Black Friday encourages a “race to the bottom” in terms of pricing, sometimes leading to “fake prices” rather than genuine discounts.
It’s not all negative reviews when it comes to Black Friday, however – retailers like Dixons Carphone and Argos argue that the day is a crucial opportunity to gain market share and increase profitability.
How has Black Friday changed with consumer demands?
What was once a single-day shopping event has expanded to include an entire weekend, often stretching into a week-long series of discounts and promotions. This transformation was needed to alleviate the retail pressure of a one-day sales surge and spread out consumer traffic, both online and in-store.
The shift from in-store to online shopping has been another major change, with 60% of retail spending during the Black Friday period taking place online in 2020. This trend peaked at 62.7% in 2021, after which in-person spending reclaimed a little ground.
In a bid to cater to a more conscientious Black Friday crowd, the period has also seen the introduction of “Small Business Saturday” which encourages consumers to support local businesses rather than flocking solely to large corporations.
However, it’s the focus on consumer electronics that perhaps best defines Black Friday. While the period is a retail boost for most sectors, 46% of UK consumers shopped for electricals in 2023, making it the most popular category. Clothing and footwear followed closely behind. This, coupled with consumer preferences for shopping online (as opposed to dealing with in-store chaos) has given rise to Cyber Monday.
Making Monday the best day of the week
Cyber Monday graphic: Cyber Monday Stock photos by Vecteezy
Cyber Monday was introduced in the early 2000s as the online counterpart to Black Friday. While the Friday traditionally focused on in-store shopping, Cyber Monday was designed to capitalise on the growing e-commerce trend, encouraging consumers to take advantage of online discounts.
By 2009, UK retailers recognised Cyber Monday as their busiest online shopping day, making it as significant in the calendar as Black Friday itself. In recent years, Cyber Monday has even slightly surpassed Black Friday in total spending due to consumers having more time to research their online purchases.
How should businesses prepare for Black Friday and Cyber Monday?
Given the unprecedented spikes in consumer demand that Black Friday and Cyber Monday bring, successful participation for retailers requires months of preparation. The central strategies needed to keep your retail operation in the game include:
Early planning
Retailers begin their Black Friday strategies months in advance, with many starting as early as summer. Key preparations include identifying the most popular products, securing inventory and planning promotional campaigns. Businesses should analyse historical sales data to help forecast demand accurately in order to prevent stock shortages and lost revenue.
Marketing campaigns
With pretty much every store in the country making a bid for Black Friday business, it’s essential to create a powerful marketing strategy that gets your company noticed. Using social media, email marketing and online ads, businesses can promote their deals well ahead of the event, building anticipation early and capturing the attention of shoppers, many of whom begin researching deals as early as October.
Extended hours and seasonal staff
To handle the influx of customers, both online and in-store, businesses often extend their operating hours and hire seasonal staff. While that may sound straightforward, Black Friday seasonal staff will be responsible for managing inordinately large crowds as well as vast numbers of transactions and customer service issues. Training these employees properly is therefore essential to the equation.
Logistics and supply chain
Perhaps the most vital component of the entire Black Friday process is smooth logistics. Retailers need to work closely with suppliers so that warehouses are stocked and ready to handle dramatically increased shipping volumes. Incorporating automated systems that manage orders and streamline last-mile delivery helps the process, keeping customers happy even during times of peak demand.
How a 4PL partner like X2 (UK) can help
Modern logistics management: Black Friday Stock photos by Vecteezy
From stock delivery to order fulfilment, Black Friday is a veritable trial by fire that tests the abilities of a company’s supply chain. All the more reason for businesses to consider using a 4PL (fourth-party logistics) provider like X2 (UK) to handle their logistics operations.
By utilising our extensive managed partner network, X2 (UK) helps companies sidestep the challenges of the Black Friday period, streamlining operations, optimising delivery routes, and ensuring that deliveries reach their destination on time. Our ability to get a vehicle on the road the same day as an enquiry, when needed, makes seasonal peaks far less intimidating. As consumers shop online to avoid Black Friday chaos, retailers are turning to X2 (UK)’s 4PL services for the very same reason.
For more information, head to x2uk.com