As I write this, it's Cyber Monday, the online sibling to Black Friday.
Black Friday originally described the chaos that followed Thanksgiving in the 1960s, when crowds of shoppers and tourists in Philadelphia flooded the city. Retailers later reclaimed the term, highlighting its significance as the point when stores moved from being "in the red" (operating at a loss) to "in the black" (turning a profit), thanks to the surge in holiday shopping. Today, Black Friday represents the start of the holiday shopping season and one of the busiest retail days of the year.
For retailers, Black Friday is perhaps the most critical day of the year, save for one: Macy's. Their most profitable day occurs one day earlier, on Thanksgiving Day when its stores are closed.
The Macy's Thanksgiving Day Parade, a cherished American holiday tradition, has a rich history that dates back to 1924. Initially organized to celebrate the grand opening of Macy's flagship store in New York City, this one-time modest event included just a few live animals from the Central Park Zoo, employees in colorful costumes, a handful of floats, and a single marching band. It was such a success that Macy's made it an annual tradition with a few modifications.
Balloons were added and released at the end of the parade. But a midair collision with a private aircraft ended that tradition, and they were replaced by the larger and more permanent balloons you see today. The marching band? They have remained unchanged since the very beginning and have grown in size and scope.
I have been lucky enough to attend the parade in person three times. When not in New York City for the event, watching the Macy's Thanksgiving Day Parade on TV is an annual tradition. I use the 90 minutes to put up our holiday tree - fighting valiantly with my fake Douglas and praying for the pre-lit lights to last one more year. That is until I hear the sounds of a marching band. I hurry down the ladder, intently watch and listen for 90 seconds until the band runs into the distance.
Over the decades, the parade has become a national icon and showcase of pop culture. Macy's regards it as its "annual gift to the nation."
The parade is an economic juggernaut with 66 year-round, full-time Macy's employees whose sole focus is to bring this event to life. They accomplish the mission with military efficiency and childlike glee. You can't help but marvel at how much planning must go into it and how good the execution has to be — the parade, the city, and the broadcasting side work hand in hand to bring the entire event to life on a seamless level. And it's not like they have weeks, or even days, to set up. On Wednesday morning, the streets are full of cars, trucks, jaywalkers, dogs, and bikes — and then the balloon people come, and you get to see the real, up-close version of the thing that everybody else has to watch on TV, in miniature.
But what drives the entire event is the TV viewers. As you may know, the television juggernaut is the National Football League; of the 100 most-watched broadcasts last year, 93 were NFL games. The Macy's Parade was one of the remaining seven, beaten out only by the president's State of the Union address.
I know talking about money and gifts is considered rude, but...
Macy's will not discuss the economics of the event, but some economists speculate that its Thanksgiving Day Parade is its most valuable asset.
According to a report on Kiplinger.com, advertising during the parade is lucrative. In 2023, a 30-second ad spot during the NBC broadcast sold for around $865,000, a testament to the parade's broad reach and cultural significance. Additionally, the parade generates significant revenue from corporate sponsorships and partnerships, with brands paying anywhere from $90,000 to $190,000 to feature their balloons or floats.
The Macy's Thanksgiving Day Parade is a powerful marketing and branding tool for Macy's, offering immense value through visibility and engagement. The event reaches over 31 million television viewers annually, with an additional 3 million in-person spectators along the parade route in NYC. This exposure ties Macy's brand closely to the holiday season, helping to drive shopping traffic during one of the most critical retail periods of the year.
And don't forget the marching bands.
How is it possible that a pageantry activity is the single most valuable asset for a retail operation? Retail department stores and the marching arts have nothing to do with one another–yet here we are.
The impact goes beyond Macy's coffers.
All these performers flew in, stayed in hotels, visited attractions, rented charter buses, and ate a ton of food. That's a lot of green spent on Black Friday–to speak nothing of the costs associated with instruments, uniforms, music, choreography, and costumes.
Next year is the 100th anniversary of the Macy's Day Parade, and its historical and cultural impact cannot be overstated. But has music's financial or cultural impact in this event ever been quantified? How much ad revenue was generated by these young performers? How many parents traveled to New York to watch the event live? How many parade watchers (in person and on TV) watch just for the marching bands? Don't get me wrong, I like a seven-story Snoopy, but it's the same balloon I saw last year, and I will likely see it again next year.
If this is a gift from Macy's, why are the young people the ones who are paying?
By all accounts, retail is struggling. Big box retail leads the way in store closures, making the Thanksgiving Parade Macy's most valuable asset. So perhaps, in addition to Black Friday and Cyber Monday, we should have 'Green Thursday,' a day symbolizing the financial 'green' that the parade and its young musical performers bring to Macy's and the people of New York.
Green Thursday? Not in place of Thanksgiving Day. Just...
Okay, let me work on that one. Do you have any better ideas for a name? I'd love to hear your thoughts and suggestions. Feel free to respond with your suggestions.
Have a great week!
Scott
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