Lauren HollandBy Lauren Holland

Black Friday got its name from the idea that the day after Thanksgiving was when retailers finally moved from the red, or loss, into the black, or profit, for the year. That explanation is the one most often repeated, and it is partly true. Other accounts of the name exist, and historians have not reached a single settled answer on the origin.

Why the Name Black Friday Stuck

The term started in Philadelphia, where the day after Thanksgiving was associated with heavy crowds and traffic. Police officers there were said to call it “Black Friday” because of the chaos of shoppers and vehicles clogging the streets. The name was used in print in the 1950s and 1960s, mostly in a local context, and it did not become a national shopping term until much later.

The profit explanation grew in popularity over time. Accountants and retailers have long used red ink for losses and black ink for gains in their books. The idea that a single day could push a store’s annual balance into the black is easy to remember, which helped the phrase spread. Both stories may have contributed, and the Philadelphia account is generally considered the older of the two.

The Factors Behind the Name

Several things came together to make the term widely known:

  • Thanksgiving timing. The day after the holiday became a natural start to the winter shopping season, and retailers built promotions around the long weekend.
  • Retail accounting. The red-and-black ledger image gave the name a business-friendly meaning that people could explain in a sentence.
  • Media coverage. Newspapers and later television reports repeated the term, so it became shorthand for the season’s biggest sales day.
  • Store hours and crowds. Early openings and extended hours made the day visibly busy, which reinforced the image of chaos rather than profit.

Because the name has more than one plausible source, you will see different claims in different places. Treat any single origin story with some caution, and check how a source supports its claim.

What to Do With This Knowledge

Knowing where the name came from will not change the deals you find, but it can help you plan. The name reflects a retail tradition that rewards preparation more than impulse.

  1. Make a list of the items you plan to buy before the sales start, so a crowded morning does not drive your choices.
  2. Check each retailer’s return policy ahead of time, especially for electronics and seasonal goods.
  3. Compare the same item across two or three stores, and note the model number so you do not mix up similar versions.
  4. Decide on a spending limit for the weekend, and stick to it.
  5. Keep receipts and order confirmations in one folder, digital or paper, until the return window closes.

Is Black Friday officially a holiday?

No. Black Friday is not a federal holiday in the United States. It is a retail tradition, and some stores close or shorten their hours, while others open early.

Why is it called Black Friday in other countries?

Many countries adopted the name because of American retail influence and media coverage. The meaning in each country can differ, and some places use the term for a sale period rather than a single day.

Did the name always mean the same thing?

The early Philadelphia usage referred to traffic and crowds. The profit meaning came later and became the more common explanation over time.

Is the profit explanation proven?

Not conclusively. Many retailers do report strong sales that weekend, but historians have found the Philadelphia origin and the accounting explanation both appear in the record, and no single source settles the question.

For more on preparing for the season, read How to Plan for Black Friday: Lists, Comparisons and Return Policies. If you are trying to decide which sales to focus on, Black Friday vs Cyber Monday: How They Differ and How to Prepare explains how the two events differ.

Ready to choose one?

Lauren Holland

About Lauren Holland

Lauren Holland is part of our editorial team and reviews and edits our holiday shopping calendar guides, checking product details against manufacturer specifications and owner feedback.