Macy’s Inc (NYSE:M) stores will remain open on Thanksgiving Day, continuing a trend started by the retailer in 2013. Not only will Macy’s keep its doors wide open on this year’s Thanksgiving Day, but the retailer will also be opening earlier than it has done in the past years. Stores will open at 5 p.m. and operate until 2 a.m., before reopening again at 6 a.m. for Black Friday shopping. Last year, Macy’s opened its stores at 6 p.m.
Some of the Macy’s stores that will not pause at 2 a.m., instead, they will operate until 10 a.m. on Black Friday, thus clocking 29 hours of nonstop operation. Though many traditional retailers of Macy’s kind choose to shut their stores on Thanksgiving Day, M believes that remaining open gives it an chance to better compete with online rivals.
In the face of deteriorating top and bottom lines, Macy’s is not willing to take chances. That is another reason Macy’s is bucking the retail trend to remain open on Thanksgiving Day.
Macy’s has been struggling with sliding sales. The company’s net sales dipped 0.7% in 1Q15, decline 2.6% in 2Q15, decline 5.2% in 3Q15 and declined a further 5.2% in 4Q15. As for 2016, Macy’s reported a 7.4% drop in net sales in 1Q16 and 3.9% decline in net sales in 2Q16. Earnings in the first two quarters of 2016 fell 28.6% and 15.6%, respectively.
Enjoying Thanksgiving with family
Some retail employees have been critical of opening for business on holidays such as Thanksgiving Day as they believe they also need the time to be with friends and family on the day. If that has been the reason many retailers do not open stores on Thanksgiving Day, Macy’s has worked out a strategy where it works with associates will to work on the holiday. Those employers who volunteer their time to work on Thanksgiving, for instance, will receive overtime compensation.
Macy’s stock was gaining 0.62% in midafternoon. But the stock is up less than 1% YTD.
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