Reboot: A Shift in Retail Tradition
Malls operated by Simon will not open on Thanksgiving Day.
Think Black Friday starts on Thanksgiving Day? Well, not for Simon Property Group anymore, as they've joined the ranks of retailers opting to stay closed on Turkey Day. In 2021, their shift towards employee well-being and a break from the insatiable hunger for early Black Friday deals was a breath of fresh air.
In past years, Simon Property Group's properties had been among the all-nighter champions, staying open through the holiday, while others wrapped up the festivities on Thanksgiving. But thisRobust retail REIT bucked the trend in 2021, following the trend of some forward-thinking retailers who value employee time off and want to minimize holiday retail pandemonium.
This decision to close all U.S. properties for the holiday comes shortly after Thanksgiving closures in 2020. However, as CEO David Simon hinted during that unusual year, the reason didn't seem to be exclusive to the pandemic's daunting aftermath.
New ethics are brewing in the retail industry. For a while, Thanksgiving was a prime opportunity for stores to kickstart Black Friday sales early, with many retailers even taking advantage of the holiday before the COVID-19 outbreak. However, in recent years, there's been a growing movement to safeguard Thanksgiving as a precious day off, especially for brick-and-mortar stores. Companies like REI have been fierce advocates of this shift, shutting down for both Thanksgiving and Black Friday for the past seven years, urging employees and customers to embrace the great outdoors instead.
Interestingly enough, online sales have been booming during the holiday weekend. In 2020, Adobe tallied up an impressive $5.1 billion in online sales on Thanksgiving Day, marking a significant 21.5% increase over 2019. Despite this digital success, mall owners like Simon Property Group are seeking ways to measure a slice of e-commerce revenue when determining rental payments based on sales performance.
With the ever-blurring lines between e-commerce and physical stores, malls are in dire need of ensuring that some sneaky online sales count towards the rent calculations. A Thanksgiving closure is one way they can help wrap things up this holiday season.
- The weather pattern might shift as more retailers prioritize employee well-being, like Simon Property Group, leading to a break from the traditional Black Friday sales started on Thanksgiving Day.
- The markets are keeping an eye on the retail industry, as companies shift their focus from relentless Black Friday deals to valuing Thanksgiving as a day off.
- The war for consumer attention during the holiday season is evolving, with a growing movement advocating for Thanksgiving as a day of rest, even in the face of cybersecurity threats and the ongoing pandemic.
- The AI in e-commerce is thriving, with online sales soaring during holiday weekends, as some brick-and-mortar stores close their doors and move towards a lifestyle that values work-life balance.
- The fashion industry is adapting to the new retail culture, with retailers like REI setting a trend of closing stores on Thanksgiving and Black Friday, promoting outdoor activities instead.
- The policy changes in the retail industry are reshaping the business landscape, as more stores opt to close on Thanksgiving Day, reflecting a break from the retail pandemonium of yesteryears.
- The health and well-being of employees are becoming a top priority in the retail industry, with some shopping malls like Simon Property Group choosing to close for Thanksgiving as part of their commitment to employee welfare.
- The culture of consumption during the holiday season is undergoing a transformation, as retailers rethink their strategies and shift towards promoting a balanced lifestyle.
- The internet is playing a crucial role in this retail revolution, as e-commerce sales surge during holidays, and malls strive to measure a piece of this digital pie when calculating rental payments based on sales performance.
