The 2015 holiday shopping season is nearly upon us. Last year around this time, we asked how remaining open on Thanksgiving would impact retailers. However, this year, the focus is moving back to stores that are closing on Thanksgiving. REI took this concept a step further when it announced that its stores also would be closed on Black Friday.
The RTP team discusses the factors motivating retailers to keep their stores closed on Thanksgiving (or longer), and how these decisions will impact their bottom line:
Debbie Hauss, Editor-In-Chief:
I applaud REI for closing on Thanksgiving but also paying its 12,000 employees for both Thanksgiving Day and the next day, Black Friday. Although other retailers are closed on Thanksgiving Day, it doesn’t look like they are paying their employees or staying closed for Black Fridayas well. REI has taken care of the issue around workers feeling like they can’t say no to working on Thanksgiving because of family obligations or the need for the extra pay. Also, by taking the initiative and announcing these plans early, REI will definitely see a public relations boost. It’s a win-win for REI and its employees.
Advertisement
Alicia Fiorletta, Content Strategist:
I think it’s really interesting that retailers are staying closed on Thanksgiving and Black Friday to differentiate from their competitors. If you look at the social posts from last year, a lot of the feedback focused on the fact that retailers only cared about making a buck and not about the well-being of their employees. I think REI and others that are staying closed during Thanksgiving and Black Friday are showing that two shopping days aren’t going to shake up their results enough to take their employees away from their families. I also really like REI’s approach in that the retailer is asking consumers and employees to share social posts to show what they’re doing outside during the holiday. It’s a powerful brand initiative that incorporates some holiday fun! If anything, I think consumers (and associates) will appreciate this move, and will even participate in the campaign to show their support! It’s a win-win!
Adam Blair, Executive Editor:
Beyond providing their employees with a much-needed day of rest before the mad rush of the holiday season, retailers have solid reasons for staying closed on Thanksgiving Day (and potentially even longer into the holiday weekend, as REI is doing). One is the changing nature of the shopper journey. With more and more purchase paths beginning online and via mobile devices, there’s less need for brick-and-mortar stores to be open in order for retailers to reach their customers, and vice versa. The other, slightly cynical reason I can give is that the free publicity generated by staying closed for the holiday can polish a retailer’s public profile while garnering additional attention during a noisy season. In the case of REI, its #OptOutside campaign, encouraging its employees to enjoy the great outdoors rather than work Black Friday, also ties in neatly with the retailer’s messaging and mission statements.
Rob Fee, Managing Editor: Despite the positive publicity that announcing a brand’s stores will close on Thanksgiving, it’s important to remember that business conditions drive these decisions. Staples, for example, kept its stores open on Thanksgiving the past two years but announced it will not this year. I’d argue that few shoppers are looking for deals on paper, pens and other office supplies on Thanksgiving, so it makes sense to keep stores closed. Stores featuring more traditional holiday gifts, such as Macy’s or Best Buy, already announced plans to open during the evening on Thanksgiving. It might not work for all retailers, but I do think that there is a case to be made for keeping stores open on holidays — especially if customers show up.
Glenn Taylor, Associate Editor: As a whole, retailers do realize that while Black Friday is still a massive event, it isn’t everything, as evidenced by an 11% decline in sales last year. The rest of the weekend and surrounding weeks appear to haul in plenty of revenue from the consumer, and the shift to e-Commerce and mobile enables the retailer to stay engaged without keeping its stores open. Cyber Monday continues to be an even bigger hit by the year, further downplaying the significance of the stores that weekend. From a business perspective, REI knew what it was doing here. In creating the #OptOutside campaign, it has created publicity for itself unique from any other retailer in the space as the holidays come aboard. I would bet that come 2016, REI will be very satisfied with its post-Black Friday sales.