Outdoor retailer Recreational Equipment Inc., known as REI, has announced it is cancelling Black Friday at its stores this year, opting to close its 143 stores on the Friday after Thanksgiving.
"We think that Black Friday has gotten out of hand," said CEO Jerry Stritzke, according to CNN.
American retailers have been starting their Black Friday sales earlier and earlier over the past few years, forcing employees to open stores on Thanksgiving afternoon.
The Kent, Wash.-based co-op now has put an end to the practice in its stores, telling members about the plan in an email Monday, reported ABC News. Not only will employees have Thanksgiving off, but they will also have Black Friday off with pay
Instead of luring members inside its doors during the sale, REI encourages them to go outdoors, creating the social media hashtag #optoutside and a website where people can share their outdoorsy plans for that day.
The National Retail Federation said fewer people shopped over Thanksgiving weekend last year due to early discounts, more online shopping and a mixed economy.
Stritzke did say, however, that the business will lose revenue closing on Black Friday, which has consistently been a top 10 sales day for the franchise. However, he isn't worried the strategy will be costly. Since the company doesn't have shareholders because it's a "consumer co-op," there isn't anyone to mollify in situations like this.
Instead of shareholders, REI has member customers who pay a one-time fee and receive an annual dividend of about 10 percent of the purchases they made that year, reported USA Today. Since these members account for roughly 90 percent of the company's sales, Stritzke said keeping their loyalty means focusing on what they care about rather than competing for holiday bargain hunters.
"This business centers [on] the outdoors," he said. "Thus, we can do something like close our doors on Black Friday, and we'll have the membership that'll think that's cool."
