#OptOutside

Before the Thanksgiving food coma even has the chance to take over, millions of Americans will line up to secure their spot at shopping centers everywhere to take advantage of the advertised “doorbuster deals”. Not all retailers will open their doors to welcome eager shoppers on Black Friday. In late October, Seattle-based outdoor outfitter REI announced it would be closing all 143 stores across the country instead of keeping its doors open on Black Friday. Instead, 12,000 employees will receive a paid day off to enjoy the great outdoors. Was REI’s choice to opt out of the retail holiday a poor business decision?

Jerry Stritzke, president and CEO of REI explained the company’s decision to #OptOutside after the announcement was made: “For 76 years, our co-op has been dedicated to one thing and one thing only: a life outdoors. We believe that being outside makes our lives better. And Black Friday is the perfect time to remind ourselves of this essential truth. We’re a different kind of company—and while the rest of the world is fighting it out in the aisles, we’ll be spending our day a little differently. We’re choosing to opt outside, and want you to come with us.” Instead of welcoming crowds of holiday shoppers into their stores, REI chose to emphasize how its organization is different and has value. As one of the most powerful forces in outdoor retailing, the company now urges its employees and shoppers to enjoy the great outdoors instead of losing sleep and money running from store to store.

In November 2014, the National Retail Federation reported Thanksgiving and the day after accounted for $50.8 billion in revenue. Choosing to close doors on a day that promises an increase in revenue may cost REI some profits, but it was not a poor business decision. The decision to close its doors encourages goodwill from customers and higher post-Black Friday sales. Many shoppers have already transitioned to online holiday shopping instead of visiting physical stores to avoid the holiday crowds. 

REI’s approach for #OptOutside is heavily promoted on the company’s social media and website, a countdown to Black Friday even displayed on the homepage of its website. Additionally, a feature on the website allows visitors to share their plans for Black Friday by selecting an image of an activity of their choice. The image is then stamped with a graphic that reads, “On Black Friday, I’ll be Here #OptOutside.” Although the promise of increased profits will be missed by REI, the decision to close stores for Thanksgiving and Black Friday was a successful business decision because of the organized campaign on the company’s website, paid holiday off for employees and the encouragement for others to enjoy the great outdoors instead of participating in the craziness of Black Friday shopping.

Holiday Trends

Now that Halloween is over, the holiday season is underway and building momentum as many begin to prepare their gift lists. Consumers are at the ready to spend millions this holiday season. As they open their wallets to take advantage of the deals and spread holiday cheer, it is important for retailers to recognize the consumer shopping trends ruling the season of spending.

With a $630 billion season ahead, retailers are preparing their holiday season marketing plans. According to the National Retail Federation’s Holiday Consumer Spending Survey conducted by Prosper Insights and Analytics, consumers celebrating Christmas, Hanukkah and/or Kwanzaa will spend an average of $805.65 on food items, decorations, gifts and more over the holiday season. This is the highest amount seen in the survey’s 14-year history. Spending on gifts for family members will total $462.95, up from $458.75 last year and also a survey high.

Holiday shoppers are looking for options that save them money and time but still provide plenty of value. Many consumers will take advantage of the deals and discounts during the holidays on merchandise that has little or no connection with the season. For example, many consumers will be spending on new clothing for themselves or for their kids as well as updates for their home. Retailers should utilize this trend in personal spending by ensuring gift items as well as personal items are discounted.

This season, approximately 46 percent of holiday shopping will take place online. With this in mind, retailers should place these omnichannel offerings upfront both online and in stores. Mobile is the fastest growing channel for holiday shoppers, especially for browsing and buying. Additionally, 47 percent of holiday shoppers ranked free shipping and shipping promotions in the NRF survey as a key factor in deciding where to do their shopping during the holiday season. ‘Tis the season to be spending. Retailers are preparing for the 2015 holiday shopper with discounts and digital as a focus.

Chipotle E. coli Outbreak

Chipotle cravings in the Pacific Northwest were unable to be satisfied due to a recent E. coli outbreak. Customers in Washington and Oregon reported illness after their meals at the restaurant. With this outbreak comes an opportunity for Chipotle to show its commitment to food safety and quality for its customers. So far, the damage control for its reputation after this occurrence has been focused primarily on the safety concerns for consumers, but the company is placing PR as a priority as well.

State health officials in Washington and Oregon reported 22 cases of customers with E.coli bacteria. The source has been linked to six Chipotle Mexican Grill restaurants. Fourteen people have been hospitalized and this prompted the Denver-based chain to suspend operations at dozens of locations. A smart move on Chipotle’s part, the company chose to be proactive and update the media immediately after making the decision to suspend operations. Chipotle managers also informed state health officials that they would voluntarily close all restaurants in the affected areas until further notice in an effort to prevent further harm to its customers.

According to company spokesman Chris Arnold, 43 locations in Oregon and Washington have been closed temporarily: “We immediately closed all of our restaurants in the area out of an abundance of caution, even though the vast majority of these restaurants have no reported problems.” Although the closings are causing losses for the company, its concern for the wellbeing of consumers is larger, showing its commitment to quality and safety.

Chipotle Mexican Grill is working to prevent any further problems while keeping its consumers updated on the situation on its website and social media platforms. Consumers looking for information and reassurance that the food they are purchasing is safe to eat are happy to see the frequent updates and the overall sentiment on social media is positive and encouraging as the company takes the necessary steps to isolate the issue and fix it. The responsibility exhibited in the decision to close stores and the transparency the company has upheld is proof that damage control is vital if a company wants to come out on top after a reputation damaging crisis.

The Public Relations Profession

What do Jerry Maguire, Samantha Jones and Olivia Pope have in common? They are the characters many people think of and misconstrue as true public relations practitioners. We’re not “spin doctors” and we’re not glorified party planners, so what are we? What is public relations?

There are many definitions out there for PR, but I tend to stick to PRSA’s definition: Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics. With technology, social media and communication in general growing and times progressing, companies are searching for the adaptability, skill and knowledge of a PR professional to help them move through the noise and get a clear message to the audience.

Many portrayals of public relations practitioners are inaccurate because unfortunately, PR has a problem with PR. PRSA and PRSSA work to resolve this problem by advocating for the highest ethical principles with a strong Code of Ethics and diversity in the profession. The PRSA Code of Ethics advises professionals to:

• Protect and advance the free flow of accurate and truthful information.
• Foster informed decision making through open communication.
• Protect confidential and private information.
• Promote healthy and fair competition among professionals.
• Avoid conflicts of interest.
• Work to strengthen the public’s trust in the profession.

Not only should professionals follow these code guidelines, but also PRSSA members as we work to prepare ourselves for the public relations profession after graduation. Adhering to these principles and core values shows professionalism and advances your success.