In 1908, Edward Filene opened Filene’s Basement in Boston. This was the first major bargain basement in an American department store. It used an automatic markdown system where prices dropped based on how long an item stayed on the shelf. If a coat did not sell in 12 days, the store cut the price by 25 percent. After 30 days, the price dropped by 75 percent. Shoppers in the early 1900s tracked these dates to get the lowest price possible. During the holiday season, these basements were packed with people looking for high-quality wool clothing and leather boots for low costs.
In New York City, department stores like Macy’s and Gimbels competed for holiday shoppers through elaborate window displays and printed advertisements. Bargain hunters used the weeks before Christmas to compare prices in these windows. By the 1920s, stores began using massive clearance sales on the day after Thanksgiving to clear out stock. This tradition forced shoppers to arrive early in the morning to secure limited items like silk stockings and tailored hats.
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The 1940s and 1950s saw a shift in how people traveled to find deals. As families moved to the suburbs, large shopping centers with massive parking lots replaced downtown districts. Holiday bargain hunters focused on buying home appliances and new synthetic fabrics. In 1947, shoppers crowded into stores to buy the first widely available television sets. Retailers used “loss leaders” to drive traffic. These were items sold at a loss, such as a cheap toaster, to attract people into the building so they would buy more expensive gifts.
In the 1980s, bargain hunting turned into a high-speed competition for specific toys. The 1983 holiday season was defined by the Cabbage Patch Kids craze. Retailers offered limited shipments of these dolls at standard prices, but they sold out in minutes. This forced shoppers to wait in lines overnight for the first time. The goal was to find a bargain before the item reached the expensive resale market. Stores like Sears and Montgomery Ward sent out thick holiday catalogs known as “wish books.” Shoppers spent hours circling items and comparing the prices found in different store circulars.
