Every Thanksgiving, millions of people gather across the country. To celebrate Thanksgiving? Not necessarily. More and more, we see people leaving their family dinners and gatherings to go shopping. Black Friday shopping has seemed to have risen in popularity over the past decade. However, a closer look may show that Black Friday is not all that it’s cracked up to be—that maybe, it’s just a bunch of hype.

Black Friday is often viewed as a stimulant to the economy. It makes sense, right? More things being sold, more consumers spending money. However, through analysis of annual Black Friday sales versus general holiday sales, we actually see a negative slope. Black Friday sales prove weaker than sales that, when considered, receive much more media attention.

So if these sales do not make the impact that we have so readily believed, why do retailers place so much stock in advertisement for Black Friday? The truth is that they are not marketing the products that are on sale on Black Friday at all. Rather, they are advertising their store in anticipation that consumers will remember these great Black Friday sales throughout the holiday season and want to buy their products later in the season (or return, if they fell for the trick).

So as you prepare to celebrate the Thanksgiving holiday, and as you develop a Black Friday game plan, realize that the best deals may not be on Thursday at all, unless that deal is spending time with your family and friends.

Sources:

https://www.washingtonpost.com/news/wonk/wp/2012/11/23/black-friday-is-a-bunch-of-meaningless-hype-in-one-chart/
https://www.capitaleconomics.com/