Bridger PenningtonFund Launch & Investment Expert

Reason For Black Friday | Bridger Pennington

11 Dec 2023 · 0 min

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Walmart and other big retailers operate at a loss for 11 months, then make their entire year's profit in the final 30 days of holiday shopping. That's why they can slash prices on Black Friday: they're finally moving from the red into the black.

It's called Black Friday because that's the day that most companies went into the black previously. It's kind of interesting to think about. So like a company like Walmart, they have all their stores, all their overhead, they work for 11 months a year and make no profit just so that they can sell you stuff for 30 days and make all the cheddar and margin those last 30 days. So we can start doing sales, we can start discounting because we're now profitable for the year.