NEW YORK , Target will not open its stores on Thanksgiving Day. This permanent shift to the informal start of the holiday season, which was temporarily suspended due to the pandemic, makes it impossible for Target to close its stores.
Last year, to limit the number of shoppers in stores, retailers had to make what was once a weekend shopping frenzy into an extended event with holiday sales starting as early as October.
It seems that the forced shift was a fortunate one.
According to The National Retail Federation (the nation’s largest trade group), U.S. holiday sales increased 8.2% in 2020 compared to the previous year. According to the trade group, 2021 could break that record by growing between 8.5%-10.5%.
Americans seemed to embrace the opportunity to receive the same offers over a longer time period, which relieved some of the stress that goes hand in hand holiday-related stress.
Target CEO Brian Cornell sent a note to employees stating that “What began as a temporary measure driven the pandemic is now Our New Standard — One that recognizes our capability to deliver on our guest’s holiday wishes both within and beyond store hours.”
Target’s new standard could encourage other retailers to adopt its model, based on very healthy sales last fiscal year.
Target announced Monday that distribution and call centers would have staff for Thanksgiving. However, stores will remain closed.
Target opened its first Thanksgiving store a decade ago. It joined other retailers in initiating Black Friday sales one day earlier and creating a holiday rush following the Thanksgiving feast. Many did this to compete against Amazon.com and other growing online threats.
However, the shift appeared to only cannibalize Black Friday sales. Critics also criticized big retailers for claiming that thousands of holiday-goers were being forced to work instead of spending time with their families.
Some malls and stores, such as the Mall of America in Minnesota stopped doing this and closed their doors on Thanksgiving. Costco and Nordstrom were among those that closed their doors on Thanksgiving, citing respect for the holiday.
Thanksgiving has historically been a low-sales day. It wasn’t one of the top 10 sales days. Stores usually opened at 5 p.m. It’s been a huge online sales day.
According to the Adobe Digital Economy Index, last year the holiday was behind Cyber Monday and Black Friday when it came to online sales.
