The origins of Black Friday: From financial crisis to shopping chaos

The term “Black Friday” wasn’t originally linked to holiday shopping at all. Instead, it first described a financial crisis back in 1869 when Wall Street financiers Jay Gould and Jim Fisk tried to monopolise the U.S. gold market. Their attempt led to a catastrophic market crash, causing financial ruin for countless investors. Fast-forward to the 1950s in Philadelphia, where “Black Friday” was revived by police to describe the chaos that erupted the day after Thanksgiving. Shoppers and tourists flocked to the city for the annual Army-Navy football game, resulting in major traffic congestion, overwhelmed police, and an uptick in shoplifting.

Retailers eventually attempted to rebrand Black Friday to signify a positive shift from losses to profits—moving from “in the red” to “in the black.” This new spin caught on, and by the 1980s, Black Friday had become a celebrated shopping day nationwide. Today, it’s a cultural phenomenon, expanded by Cyber Monday and even “Black November” in some countries, including South Africa. Yet, amid the markdowns and limited-time offers, Black Friday may not bring the financial freedom it promises.

The psychology behind the sales: Why we buy (and regret)

Shoppers often view Black Friday as a golden opportunity, assuming discounts mean immediate savings. Yet this is where our inner shopaholic takes over, like the character with the green scarf in Confessions of a Shopaholic. A friend recently admitted to purchasing an extra set of mugs on last year’s Black Friday special. A bargain, she thought—until she realised they’d been sitting unused in her cupboard for months. “I bought them because they were cheap,” she laughed, “but I didn’t actually need them!”

Psychologists call this the “satisfaction cycle,” where the thrill of purchasing at a discount delivers instant gratification. However, when the credit card bill arrives, that joy often turns to buyer’s remorse. For many, the reality of spending too much too quickly hits hard, and those seemingly irresistible deals lose their shine. This year, we might ask ourselves: do we truly need another “must-have” gadget, or are we just chasing a temporary thrill?

Black Friday in South Africa: Trends and temptations

Introduced to South Africa in 2014, Black Friday has become a major shopping event, with brands claiming it as the beginning of the festive shopping season. According to BusinessTech, Black Friday spans much of November, coining the term “Black November” as brands stretch their sales throughout the month. While electronics and luxury items typically headline these sales, recent years have seen cash-strapped consumers focusing on essentials, like groceries and toiletries, rather than indulgent big-ticket items.

This shift speaks volumes about current economic pressures, with many shoppers strategically waiting until November to buy what they need, rather than splurging on luxury. However, not all “bargains” deliver true savings despite this savvy approach. Retailers know the psychology of scarcity—limited-time deals, countdowns, and flash sales—all designed to keep consumers in a buying frenzy.

Thys Van Zyl, CEO of Everest Wealth, offers a very unique perspective on Black Friday, perspective. “A deal remains a deal until you buy it,” underscoring the psychological allure of discounts that can turn a mere want into a “need” with just one click.

This behavior isn’t unique to South Africa, but in a country facing increasing economic pressures, the stakes are especially high. “Can South Africans really afford these unnecessary products?” Van Zyl asks.

His advice? “Spend less and start buying in bulk with family.”

While Van Zyl notes that Black Friday may offer a quarterly economic boost for South Africa, the question remains: does it truly benefit consumers in the long run? Some argue that it’s a good chance to save on necessities, but Van Zyl cautions against splurging on non-essentials: “Consumers may pay less, yes, but do they really need it?”

He advocates for buying essentials in bulk and avoiding luxuries, recognizing that while retailers may see smaller margins, they profit from the high sales volume driven by the frenzy.

Digital deals and the cyber risks of online shopping

In today’s digital age, online shopping has made Black Friday more accessible—and perhaps even more tempting. No longer confined to the high street or shopping centre, the allure of discounts is just a click away. But with this convenience comes a new set of challenges. As online transactions surge, so do cybersecurity threats. Cybercriminals prey on eager shoppers through phishing scams, fake websites, and impersonation schemes.

To stay safe, shoppers should follow a few key rules: avoid unknown or unsecured websites, use unique passwords, and remain vigilant of any suspicious links or offers. And, as tempting as online credit options may seem, relying too heavily on credit can lead to post-holiday debt. Setting a clear budget, understanding what’s essential, and being mindful of scams can make the Black Friday experience both safer and more satisfying.

Needs vs. Wants: Shopping smarter this season

Amid the excitement, it’s easy to lose sight of what’s necessary versus what’s appealing. Take a moment to consider your Black Friday wish list. Are you adding items to your cart because they’re things you need, or is the adrenaline of a limited-time sale making you click “buy”? Like the friend with the cupboard full of unused mugs, many shoppers end up with items they barely touch, simply because they were “on sale.”

The key to shopping smarter this Black Friday?

 Take a breath and reflect on whether each purchase aligns with your needs. If you’re adding to the cart impulsively, remember: there will always be another sale. More importantly, there’s often a hidden cost to these deals. That “bargain” dress that doesn’t quite fit or those extra mugs add up—not just in price, but in clutter, waste, and potential regret.

Closing Thoughts: Shopping with a clear mind

As we prepare for Black Friday, let’s embrace a new mantra: “Buy what you need, not what’s on sale.” The spirit of Black Friday doesn’t need to vanish, but a more thoughtful approach can help us avoid the pitfalls of overconsumption and financial strain. So, whether you’re navigating the digital aisles or braving the shops in person, remember that the best deal is the one that doesn’t come with a hefty price tag or regret later.

As Van Zyl ironically remarks, “You can now even shop online from the toilet, which leads to buying a bunch of rubbish…”

It’s a humorous yet honest reminder that digital convenience often fuels unnecessary purchases. After all, a 20% discount on a coffee maker may quickly lead to regret if it wasn’t truly needed. So happy shopping—wisely! And may your Black Friday be both satisfying and truly worth the price.