Black Thursday? Black Eye for Retailers? Not So Fast.

Most people wonder when enough is enough and they question why retailers find the need to be open, even if for a few hours, on Thanksgiving Day. The simple answer is that more hours will mean more business. Thanksgiving is not a religious holiday like Christmas and we have all witnessed the commercialization of Christmas. It was only a few years ago we had the national debate via social media, “should retailers put the Christ back in Christmas,” and we also argued to drop “Happy Holidays” and return to “Merry Christmas” in marketing and advertising campaigns. That worked to some degree.

More recently the petition “Target: Take the high road and save Thanksgiving” went viral which created the Holiday 2012 debate – to open or stay closed on Thanksgiving Day. Retailers that forgo hours on Thanksgiving Day will basically hand over sales to the competitors who will be open. Last year retailers that were open earlier (extended their hours) witnessed gains of up to 22% more in sales for the Black Friday weekend, while those that did not extend hours gained 8% less in sales (Source: The NPD Group, Inc. / The Anatomy of Black Friday Study 2011).

Consumers have become more sophisticated with their Black Friday shopping strategy and the retailers have to follow suit. At the start of the holiday season they are forced to offer up the deals ahead of time so that consumers who want to map out their approach will be armed with the essential tools. With staggered hours, the type A Black Friday shopper will hit the stores every time they open which will give the stores an occasion to make a big first holiday impression. Consumers are likely to return even after they stock up on great deals when they see the products / deals the store has to offer while they shop the first round. The early bird does indeed catch the worm.

Now consider the fact that most employees are not required to work on Thanksgiving but are offered the opportunity to make extra money (useful for holiday spending) and this will be the start of the commercialization of Thanksgiving. The concept is the same as when retailers offer sales on Veterans Day, Presidents Day, Columbus Day, Easter Sales, etc. Compare brands and retailers to the greeting card companies, they find a holiday every month to promote and to drive traffic.

Consumers that would rather shop than watch 12 hours of football on Thanksgiving Day should be given the chance to shop. If online is open, why should brick-and-mortar close just to give away those precious shopping hours to the competition? Every minute counts during the holiday season and retailers cannot afford to let the competition take away business.

On Thanksgiving Day last year, when more brick-and-mortar were closed for business than will be this year, 66% of all buying visits came through brick-and-mortar and 31% through online compared to Black Friday when 85% of all buying visits came through brick-and-mortar and 13% through online.

The retailer will stay closed on Thanksgiving under only one condition – the consumer stays home to watch football instead. This is an experiment that has become contagious and most retailers want to find out if it works. Just like we saw Black Friday evolve a decade ago when they started the “door buster deals” to drive consumers to their stores, we are witness to a new tradition, shopping off that Thanksgiving Turkey.

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