Black Friday has a multilayer history. One of the reasons for the existence of this term is the way retailers used to mark loss and profits in their books. Losses were written in red color while the black was being used for profits. According to theory, there used to be a time when it was usual that for a whole year most of the retailers operate with loss. Then, the day after Thanksgiving, a special Friday would come and bring the reason for store owners to use the black color and record profits. It is one of the reasons for that day being called black and converted into what we know as a “Black Friday.” This is the most commonly repeated story about the history of Black Friday, but it is just a drop in the ocean of truth. Not all retailers had a loss during the rest of the year. There were always businesses that were holding for profits and success during the whole year but what is certain is the fact that Black Friday means a lot to Q4 profit recording.
What is Q4?
Q4 stands for quarter four and represents the fourth quarter of the year.
In the context of business, a quarter is a three-month period on a company’s financial calendar. It is used as a basis for periodic financial reports and the paying of dividends. The quarter system is universal for all the companies.
Black Friday Part in Q4 – How much do Americans spend on Black Friday?
Enormous amounts of money would be the short answer. In the table below you can see how Black Friday spendings increase over the years starting from 2002. The exception is the year 2008. That was the time when the economic crises had hit the world and brought decrease to the overall spending. Just two years later, consumerism was in its full strength once again and the spendings were rising.
Last year, in 24 hours, American shoppers spent a record $5 billion online. US retailers generated $7.9 billion in online sales from both Thanksgiving and Black Friday in 2017, which was up 17.9% from the year before.
According to experts, the spendings of Black Friday are going to continue with rapid increase. Some even say that up until 2030 there is a possibility to reach the spending amount of a trillion. Here we speak about one-day sales that are even being reduced by marketing strategies implemented by many large companies like Amazon and eBay, which offer their top deals with a countdown that ends the moment Black Friday starts. In whatever ways things turn out at the end, one thing is certain, there will be shopping madness.