The holiday season, marked by the frenzied shopping extravaganzas of Black Friday and Cyber Monday, has become a hallmark of American consumerism. It’s a time when retailers promise unbeatable deals, and shoppers line up in droves to snag the best bargains. But beneath the excitement and discounts lies a harsh reality: Black Friday and Cyber Monday have morphed into a shopping scam, where retailers rarely offer genuine discounts, and consumers are lured into spending money they don’t have on items they often don’t need.
Black Friday, the day following Thanksgiving, has a long history that dates back to the 1930s. It is believed by many that the term Black Friday originated from the concept that businesses operate at a financial loss, or are “in the red,” until the day after Thanksgiving, when massive sales finally allow them to turn a profit, or put them “in the black.” However, this is untrue. Originally, the term was used to describe the chaotic and disruptive pedestrian and vehicle traffic that occurred after Thanksgiving parades in Philadelphia. The huge crowds created a headache for the police, who worked longer shifts than usual as they dealt with traffic jams, accidents, shoplifting, and other issues. It wasn’t until the 1960s that retailers began to associate it with the start of the holiday shopping season.
In the early days of Black Friday, shoppers could genuinely find remarkable deals. Retailers would offer significant discounts to attract customers and clear out inventory. However, as the years passed, the meaning of “discount” began to shift. Retailers found clever ways to manipulate prices, creating the illusion of massive savings. Today, many Black Friday deals are not as they seem. Retailers often mark up prices in the weeks leading up to the shopping event, only to offer what appears to be deep discounts on Black Friday. In reality, these “discounted” prices are often higher than the original prices before the price hike.
With the advent of e-commerce, Cyber Monday was born in the mid-2000s as the online counterpart to Black Friday. Online retailers promised exclusive deals and discounts, and consumers eagerly embraced the convenience of shopping from their screens. However, just like its predecessor, Cyber Monday has fallen victim to deceptive pricing tactics. Retailers employ tactics such as “dynamic pricing,” where online prices change based on demand and browsing history. This means that consumers may not see the same prices as others, leading to a sense of urgency to make a purchase.
Additionally, the rise of “doorbusters” and limited-time offers often creates a sense of scarcity, compelling shoppers to buy quickly without considering whether they truly need the items. Retailers capitalize on this “fomo” (fear of missing out) tactic to boost sales.
This year, Black Friday and Cyber Monday saw a surge in the use of Buy Now, Pay Later (BNPL) services, allowing consumers to make purchases with deferred payments. While these services offer convenience, they also encourage impulse buying and can lead to financial strain. There are reports that BNPL may have gone up by as much as 83% from last year. Consumers may not realize the true cost of their purchases until it’s too late, with interest and fees accumulating over time.
In a world where conspicuous consumption often reigns supreme, it’s easy for consumers to fall into the trap of spending money they don’t have on items they don’t need. The holiday season, once a time for reflection and gratitude, has become an exercise in excess. Many shoppers emerge from the holiday season with depleted bank accounts, steep credit card debt, and a sense of buyer’s remorse.
As Black Friday and Cyber Monday continue to evolve into massive shopping spectacles, it’s critical for consumers to exercise caution and mindfulness. True savings come not from scoring the biggest discount but from making informed, intentional purchases. It’s time for consumers to reclaim the shopping season by embracing conscious consumerism and resisting the allure of excessive spending. After all, genuine savings and financial well-being are worth more than any discounted item.
Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.
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