Is Black Friday Still the Day Retailers Move From Loss to Profit?

While it's not the only meaning behind the name, one of the reasons Black Friday gained that nickname comes from the idea that the rush of shoppers moved retailers from a loss (the red) to a profit (the black).

Of course, the idea of retailers operating at a loss for nearly 11 months then turning profitable on the day after Thanksgiving was never an absolute. Yes, it was more or less true for toy stores, some electronics retailers, and maybe even certain department stores, but the reality is, "Black Friday" was always a generalization.

"Even though the amount of shopping on that particular day is extremely high, it's a bit of folklore that some high percentage of retailers finally experienced profitability on that very day," said Florida International University marketing professor Anthony Miyazaki in an email to The Motley Fool. "The vast majority of retailers are pulling a profit long before the holiday shopping season starts."

Source: Fool.com