by Cory Schmelzer San Diego Wealth Management
Black Friday, the day after Thanksgiving, is considered to be among the most important retail days of the year. Many Americans enjoy burning a few of those pumpkin pie calories by at least a taking a stroll through the mall, if not a full sprint through a nearby mega-retailer.
The origins of the term Black Friday can be traced back to the Financial Crisis of 1869. The modern connotation of “Black Friday” came into vogue in the 1980’s as an accounting practice term. Since retailers traditionally operated at a financial loss for most of the year (“in the red”), the day after Thanksgiving is estimated to be when the average retailer begins making a profit, operating “in the black.”
Still, today, Black Friday represents the commencement of a tremendously important season for all retailers, perhaps even more so for our local retailers. As you are planning your purchases, why not consider if they can be made at locally? After all, money spent at a local business generates 3.5 times more wealth for the local economy compared to money spent at a chain-owned business, according to the Andersonville Study of Retail Economics.
To this end, Small Business Saturday was started in 2010 as a local alternative to Black Friday’s mega-retailer’s door buster sales. In 2013, nearly 1,500 small businesses, individuals, and local organizations pledged to further support Small Business Saturday by becoming “Neighborhood Champions.” Neighborhood Champions across all 50 states rallied their local businesses and communities to participate in the day and created events and activities to drive shopping around the country. This year, Small Business Saturday is November 29, 2014.