3 reasons REI can close on Black Friday and Macy’s can’t
REI said it will close all its stores on Black Friday.
Don't plan on camping out in front of Recreational Equipment Inc. for deals this Black Friday.
As other stores have started sales even earlier on Thanksgiving, outdoor gear retailer REI said it will close all 143 of its stores, headquarters and two distribution centers on one of the biggest shopping days of the year.
Instead, REI is encouraging customers and employees to spend Black Friday with nature in a new online campaign called #OptOutside.
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REI's 12,000 employees will receive a paid day off, with only some workers remaining on call. Online orders will not ship until Saturday, Nov. 28.
In a statement, Chief Executive Jerry Stritzke said the shopping holiday has gotten "out of hand" and that REI wanted to "invest in helping people get outside with loved ones."
"We're a different kind of company," said Rachel Ligtenberg, REI's vice president of retail. "This is a unique moment to extend that period of thanks and really be thankful for all that the outdoor world gives to us."
She said she will be spending Black Friday with her family, either skiing or hiking.
“I’ve been with REI for over 25 years in retail and this is my first black Friday to have off," Ligtenberg said.
Here's why REI can get away with skipping one of the most hectic shopping days.
REI is not a public company -- unlike, say, Macy's
REI is the nation's largest consumer co-op, and does not face the same financial pressures as publicly traded companies. Its 5.5 million members pay a one-time $20 fee and receive voting rights to elect REI's board of directors as well as an annual member refund from the company's profits based on their purchases.
REI has built its brand on the outdoors
REI is a specialty outdoor gear retailer, and its #OptOutside campaign fits with what they already advocate. The website built for #OptOutside gives suggestions for nearby hiking trails.
Black Friday is becoming less relevant
Last year, Black Friday weekend sales fell 11% and shopper traffic was down 5.2%, a result attributed to promotions on Thanksgiving and sales that started in early November.
Plus, taking a stand on an otherwise hectic holiday shopping weekend could help REI stand out from the pack, said Nikki Baird, managing partner at Retail Systems Research.
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"REI is not a big deal-driven retailer, so losing out on Black Friday is less of a risk for them than, say, a Target or Wal-Mart," she said. "For most of their shoppers, it’s a nice touch in an otherwise crazy holiday weekend."
In a letter to members, REI said there will still be "great deals" on gear during the holiday season.
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