Greensboro, NC - Shoppers around the Triad were out in force on Black Friday, beginning the holiday shopping frenzy that is not only a make or break time for retail stores, but also a signal to all businesses whether or not the economy is growing, and whether or not they should hire more workers.
The day is called Black Friday because retail stores, for the first time all year, begin to earn a profit.
Companies go from "in the red" to "in the black," thus the name "Black Friday."
Michael Wittenberg, certified financial planner of Wittenberg Priddy Blankenship told News 2, "For businesses, this is an incredible time of year. For many retailers they do literally a third of their business in six weeks during holiday shopping season."
Wittenberg went on to say, "They go ten and a half months, essentially, basically just trying to cover costs. And their whole profitability is in the last six weeks of the year. It's astounding."
If retail businesses have a strong holiday shopping season, that is a signal to all businesses that consumers can spend money and create demand for goods and services. This, in turn, turns into hiring.
"The more consumer spending we have, that allows for more profits so that companies can hire more people because there is a sign of more demand," Wittenberg said, He added, "The whole problem that has plagued our economy is we haven't had much demand and when we don't have much demand you don't need to hire workers."
Holiday spending is expected to be approximately $600 billion this year.