Consumers in North America are expected to be the driving force behind another hugely lucrative Black Friday retail sales event this year.
First popularised in Philadelphia during the 1960s, Black Friday has since gone on to become one of the biggest revenue drivers in the retail sector.
The event was initially held on a single day, but advancements in technology have allowed it to become a multi-day sales extravaganza.
As highlighted by recent research by online casino Betway, Black Friday has generated more than $50 billion globally in each of the last four years.
Technology products tend to be the most sought after, with game consoles, Apple watches and smartphones the most searched for items on Google in the run-up to the event.
Global expenditure last year was $58bn, which would put someone 21st on the 2021 Forbes Rich List if translated to personal wealth.
The event is often used by retailers to claw back revenue deficits from the previous three quarters, helping them turn a profit by the end of the year.
While speaking about Black Friday to Betway, retail guru Bob Phibbs says the innovation of big businesses and the holiday’s extension into a multi-day event has been the key to its success.
“It’s the biggest of the big,” he says.
“The Walmarts and even Amazons launched their Black Friday deals back in October. We can also look at Prime Day in the summer.”
“There used to be Cyber Monday that was a big deal before we had apps and people had internet in their homes.”
“People came back to work and did their shopping on Monday because that was the only time they could actually get online. That’s not the case anymore.”
“People have more time to do their shopping.”
Having first established itself in North America, it comes as no surprise to find that US and Canadian citizens can’t get enough of Black Friday bargains.
The US was responsible for the highest Black Friday spending last year, with consumers there splashing out a whopping $497 per person.
Canada was next on the list at $441 per person, with United Kingdom ($407), Ireland ($348) and United Arab Emirates ($298) completing the top five.
However, with revenue in 2020 dropping by around $10bn from the previous year, it is unclear whether Black Friday will continue to be successful.
The growth of initiatives such as Small Business Saturday may impact Black Friday in the future as people gravitate towards smaller enterprises.
A recent survey by American Express reported that 80% of consumers are likely to Shop Small this holiday season, highlighting how attitudes may be changing.
Despite this, Phibbs remains confident that Black Friday will survive given its status within the retail sector.
“I think the name will still be around, no doubt because people will have been used to it,” added Phibbs.
“But I think if you were to ask the younger generation in 10 years, they’re probably not going to care so much. It doesn’t have that pull.”
“It’s more the mental check mark that’s the official start of the holiday season.”
“Thanksgiving is wrapped up in American history and that’s kind of problematic, but everybody can understand Black Friday.”
