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Gray Thursday: Increased Sales, or Black Friday Suicide?

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This year, many more big-box retailers are opening their doors just as shopper bellies are digesting their Thanksgiving dinners. But is the effort really worth the cost?

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Further, Gutstein says management must be aware of potential lawsuit vulnerability when creating Thanksgiving weekend work schedules, to ensure there are no "disproportionately represented groups working the holiday, compared to the overall workforce," which can lead to discrimination-based legal action.

Retailers like Wal-Mart and Target have already received negative press in major media outlets thanks to angry hourly workers and their families. Supported by United Food and Commercial Workers (UFCW), some Wal-Mart team members are preparing to stage a Black Friday walkout protesting the Thanksgiving workday, and more than 347,000 incensed Target employees and their families have signed a petition at Change.org urging the retailer to put the Friday back into Black Friday promotions. (See: Don't Look Now, but Wal-Mart Is Facing a New Lawsuit, Even as Black Friday Strike Threat Looms.) Though they've generated far less momentum, petitions against Thanksgiving day hours at retailers like Kohl's (NYSE:KSS) and Best Buy have recently appeared at the site, too.

The Value of Urgency

But, given that about 28.7 million people did their Black Friday shopping on Thanksgiving Day last year, and that turnout represented a 6 million shopper increase over 2010, according to National Retail Federation (NRF) data, irritated employees may not be enough to sway retailers.

However, there is the matter of how removing the Black Friday shopping traditions of setting alarms, waiting in long lines, and fighting for parking spots in the wee hours of the morning will have on consumer interest and excitement for the holiday spending season. In fact, retail expert and Metropolitan State College Marketing Professor Darrin Duber-Smith predicts that Gray Thursday could ultimately be the demise of holiday shopping season momentum. "Letting a sales promotion extend into a several day time period dilutes the short term impact. The sense of urgency erodes among consumers and 'the day' loses its significance."

Robert Passikoff, founder and president of Brand Keys, Inc. seconds that notion, saying that although retailers have attempted to manipulate the holiday shopping season, there has been little effect to bottom line-but much to consumer engagement and shopper trust. "Just because retailers began advertising and decorating stores for the holidays well before Halloween doesn't mean consumers are shopping earlier," says Passikoff. He points to Brand Key's annual survey of intended holiday shopping behavior, conducted with 16,200 consumers. It revealed that 40% of those surveyed will begin shopping in November, while one-third plan to wait for the traditional Black Friday, and Cyber Monday sales. But, nearly the same proportion (36%) of customers interviewed said they'll hold onto their dollars until December-in the hopes of scoring deeper discounts.

Whether Gray Thursday or Black Friday emerges as the sales leader for retailers this year, don't hinge your investment decision-making into these two days alone. According to 2011 ComScore data, both key spending days still fall short to other key holiday spending days like Cyber Monday (November 26), Green Monday (December 10), and Free Shipping Day (December 17).

Twitter: @WellnessOnLess
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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