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Origins: Is Black Friday still the day retailers move from loss to profit? (USA Today)
What does all this mean?
"The truth is that getting into the black in terms of profits has always varied from retailer to retailer, with some getting into the black at different times of the year," wrote Pace University marketing professor Larry Chiagouris in an email to The Motley Fool.
Chiagouris explained that the Internet has forced retailers to become more efficient. It has also eliminated some less efficient players. "The shakeout of inefficient mom-and-pop stores has lifted the entire retail sector so much so that by Black Friday, most retailers are already in the black for the year," he wrote. "Those that are not in the black are likely to be the retailers that end the year in the red."
So, while Black Friday has faded in importance, it remains one of the biggest shopping days of the year. The National Retail Federation said 115 million people are planning to shop on Black Friday this year. For retailers, the day may not mark a move from the red to the black, but it's still a key milestone in the busiest shopping season of the year.
