Wednesday, November 25, 2015

#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.




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