Retailers pay heavy price for closing doors on Thanksgiving Day

8:14 PM, Nov 19, 2012   |    comments
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"Essentially, we do a full week worth of business in one day," CEO of Appliance Factory Outlet and Mattresses Chuck Ewing said.

Last year several big box competitors of Appliance Factory Outlet and Mattresses opened on Thanksgiving Day with Black Friday type sales. The impact was immediately felt.

"We opened in the morning thinking, 'OK we're not going to open up on Thanksgiving Day. We'll open up in the morning.' We didn't have customers," says Ewing.

The same thing happened to other retailers who tried to remain closed on the holiday.

"There was a study done last year that the stores that actually opened earlier and the stores that stayed open later did 20 percent more revenue than the stores that didn't," said Darrin Duber-Smith, a marketing professor at Metropolitan State University at Denver.

Those results are not lost on retailers. This year, Appliance Factory Outlet and Mattresses will open Thanksgiving night from 8:30 p.m. until midnight. They will offer special deals on appliances and even offer free Android tablets with the purchase of some items.

"The reality of it is in order to compete we have to be open Thanksgiving Day," Ewing said.

Walmart will kick off their Black Friday sales at 8 p.m. on Thanksgiving.

"We listen to our customers and the feedback that they tell us is they like to shop early," Kayla Whaling, a spokesperson for Walmart, said.

"Market creep I call it," Duber-Smith said. "It is basically when your competitors decide that they want to open earlier, you've got to open earlier too. It is a game of one-upmanship. "

(KUSA-TV © 2012 Multimedia Holdings Corporation)

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