Last week, REI (Recreational Equipment, Inc.) announced that all of its 143 stores would be closed on Black Friday. REI’s 12,000 employees are encouraged to enjoy the outdoors and will receive a paid day off.
REI CEO Jerry Stritzke explains:
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.
The announcement has been widely praised by an increasingly Black Friday-weary population. But I can only imagine what some retail industry execs are saying behind closed doors as they sip on 20-year-old Scotch and puff their cigars.
Close on Black Friday? Blasphemy! Instead of opening at 6 pm on Black Friday, let’s open at noon so we can get their money before they carve the turkey! Let’s give out turkey sandwiches so they’ll skip dinner completely and buy another flat screen TV!
I applaud REI for rising above the race-to-the-bottom price war and not giving into the pressure to devote ridiculous resources towards a single shopping day.
I also think their anti-Black Friday stand just happens to be a marketing home run. Here’s why.
We love to get outside and play.
That phrase is in the first sentence on the About REI web page. It’s not just a line or a sales tactic, although it probably does contribute to higher sales. It’s who they are.
Sure, there’s some marketing-speak in that first paragraph, but the last sentence seems to sum up their brand promise:
Whether you’re new to outdoor adventure or a seasoned pro, we gladly share our enthusiasm for our products – and the trails, slopes and waterways where we play.
The decision to encourage people to #OptOutside on Black Friday is a shrewd move. Not just because it separates them from every other major retailer, but because it’s 100 percent consistent with their brand.
“Sure, they’re closing their physical stores,” you snicker. “But their website will be a Black Friday shopper’s paradise.”
Nope.
The REI website will be open for shopping on Black Friday. To close it would be an inconvenience to customers who may want to do some shopping while they’re not outside.
However, there will be no Black Friday promotions, and orders won’t be processed until Saturday. In fact, if you go to REI’s #OptOutside website , you can share your Black Friday plans and find suggestions for places to explore.
REI isn’t looking for some backdoor way to boost Black Friday sales. They really want people to go outside.
They believe that by doing what they say and saying what they mean, they’ll forge a closer bond with their customers and employees, which will benefit REI financially in the long run.
Imagine that.
Let’s be honest. Black Friday ain’t what it used to be.
Black Friday discounts now last for weeks. Sometimes two full months.
According to the National Retail Federation, 55 percent of holiday shoppers spent money over the course of the entire Thanksgiving weekend last year. That’s a shade above the majority.
With Black Friday becoming more and more watered down and loathed, REI made a very calculated decision to be the first retailer to not only abandon Black Friday, but to speak out against it.
Is it still somewhat of a financial risk? Yes. Is it as big a risk as it may have been five years ago? Not even close.
It’s just a matter of time before other retailers close their doors on Black Friday. Others may jump on the bandwagon, but they won’t be able to say they did it first.
REI owns that position, and nobody can ever take it away from them.
Every article you read about a retailer closing on Black Friday will probably include a sentence or two about how REI was the first to do it in 2015. REI was the first to take a stand against Black Friday craziness. REI was the first to determine that staying true to its brand and taking care of its employees outweighed the risk of short-term revenue loss.
Everyone else, whether their motives are genuine or not, could be labeled a copycat.
Look no further than the emergence of Donald Trump, Ben Carson and Bernie Sanders to see how the anti-establishment movement continues to grow in our country.
Of course, God help us if one of them is elected President. End of political statement. No political comments, please.
It’s easy to increase sales by reducing prices, although I don’t know how much it helps profits. Everyone else is doing it, so you can get away with it.
REI probably saw the backlash from Black Friday sales starting earlier and eventually creeping into Thanksgiving. So they made a decision that probably made the retail establishment cringe.
But their decision is being applauded by their customers and their employees, whose opinions and feelings are much more valuable to REI.
In case you were wondering, I’ve never shopped at REI and I’m not much of an outdoorsman. But I do appreciate boldness and brilliance in marketing whether a company caters to my needs or not.
This isn’t just a case of a company trying to do the right thing. It’s smart marketing, plain and simple.
The folks at REI know what their customers want. They see where Black Friday is headed. They weighed the risk and reward. They recognize the value of being the first retailer to just say no to Black Friday.
And it’s not like they’re just shutting their doors. They’ve built an entire marketing campaign based on going against the grain on Black Friday.
Which will probably lead to more sales on days other than Black Friday.
To be fair, one could argue that a move like this is easier for REI as a consumer co-op, which means REI’s customers are also its owners.
REI is not a corporation or a publicly traded company. Like credit unions, for example, REI doesn’t exist to please shareholders. Profits are viewed as surplus and either reinvested in the company or distributed to members.
REI has also started promoting its co-op structure and even included “co-op” in its new logo. Another smart marketing move, and good timing.
Will all of these decisions pay off? Time will tell, but the impact is likely to be felt for months or even years beyond the 2015 holiday shopping season.
There’s a lot of talk in marketing about disruption. This is truly a disruptive move by REI.
While many retailers are encouraging customers to get up from their Thanksgiving dinner and join the stampede when store doors open, REI will encourage people to #OptOutside and enjoy the outdoors.
No discounts, no gimmicks, no doorbusters. Just a stroke of marketing boldness and brilliance that prioritizes brand authenticity and the customer relationship.
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