It’s Black Friday, the biggest day in retail. Here’s what to know

Retail’s biggest spectacle is here: Black Friday.

Black Friday marks the start of the holiday shopping season, with massive deals, door busters, and discounts. This year, retailers are hoping these discounts will drive demand from budget-conscious shoppers who have cut back on non-essential items due to high inflation.

Here’s what to know.

The origin of Black Friday

Today, Black Friday revolves around discounts, but where did the holiday originate?

One popular theory suggests that the term “Black Friday” comes from accounting jargon, where “in the red” means retailers are losing money, and “in the black” means turning a profit. Another explanation ties the name to the chaotic crowds and traffic jams that became synonymous with the event. Regardless of its roots, Black Friday has evolved into one of the most anticipated shopping days in the world.

What happens on Black Friday?

What can shoppers expect when the big day arrives? Tons of deals.

Black Friday remains the ultimate opportunity for bargain hunters to score discounts on everything from electronics and home appliances, to apparel, toys, and beauty products. Notably, some of the best deals don’t have to break the bank. Retailers like Amazon (AMZN-0.33%), Walmart (WMT-0.10%), and Target (TGT+1.67%) are offering items for $50 or less.

How has Black Friday changed over the years?

Retail experts say Black Friday is no longer just a one-day event, but rather a full-fledged shopping season, as companies mark down items before and after. Research is key for those looking to make the most of the sales – know what you want, compare prices, and stick to a plan to avoid impulse buys.

“As we know it, Black Friday is officially dead,” said Jerry Sheldon, vice president of IHL Group, a global retail research firm. With many retailers offering “Black Friday Deals” online, sales on Cyber Monday are expected to outpace Black Friday itself.

How much money will shoppers spend on Black Friday and this holiday season?

The National Retail Federation (NRF) forecasts a modest holiday spending increase of up to 3.5%, which could bring holiday sales close to $1 trillion.

Retailers like Macy’s (M-1.49%), T.J. Maxx (TJX+0.87%), and others were already offering discounts weeks in advance, extending the shopping season and potentially reducing the urgency for shoppers to act quickly on limited-time offers. Meanwhile, deep discount retailers like Amazon, Temu (PDD+0.92%), and Walmart are expected to be the big winners this holiday season. By contrast, retailers like Target may face challenges as they try to recover from a substantial decline in traffic.