December 22, 2015
Is staying open 179 hours crazy or savvy?
Kohl’s laid down the gauntlet in announcing plans to stay open 179 straight hours until Christmas Eve. Outside of Toys "R" Us, the retailer appears to be largely alone in pushing extreme last-minute shopping hours.
Doors opened at 7 a.m. on Thursday, Dec. 17 and will remain open until 6 p.m. on Christmas Eve. The 179-hour streak is up from 132 straight hours in 2014 and 108 in 2013.
The extended hours were offered as a convenience for procrastinators, accompanying early-bird specials on Black Saturday, Dec. 19 and buy online, pick up in-store services. Said Michelle Gass, Kohl’s chief merchandise and customer officer, "We are opening our doors around-the-clock leading up to Christmas to give customers even more time to get their last-minute gifts."
Starting on Super Saturday, Toys "R" Us is open from 6 a.m. until 2 a.m., and then will remain open for a 39-hour stretch until 9 p.m. on Christmas Eve. The retailer had similar hours in 2014. Joe Venezia, SVP of store operations said in a statement, "Customers can complete their holiday shopping whenever it’s convenient for them."
Source: Kohl’s Facebook page
Toys "R" Us also offered free shipping on online orders of $19 or more until 11:59 p.m. EST on Dec. 19 and free store pickup until 4 p.m. on Christmas Eve.
But while most Walmart stores are already open 24 hours, other retailers seem to be only showcasing extended hours in the final days.
From 2009 to 2013, Macy’s had touted that a handful of its prominent stores would be open over 48-hours straight before Christmas Eve, but the practice stopped last year and apparently hasn’t returned this year. At Macy’s Herald Square this week, for instance, hours run from 7:00 a.m. to 2 a.m. Monday through Wednesday and from 6:00 a.m. to 6:00 p.m. on Christmas Eve.
Target appears to be one of the few remaining open late on Christmas Eve, with its locations closing at either 10 p.m. or 11 p.m.
- Kohl’s Opens Doors to Last-Minute Shoppers for More Than 170 Hours Straight – Kohl’s Corp.
- Toys"R"Us Offers Extended Store Hours And Special Savings For Last-Minute Holiday Shopping – Toys"R"Us
- Shop Macy’s for Last-Minute Holiday Gifts That Are Sure to Please Everyone on the List – Macy’s
- Super Saturday: South Florida malls, stores extend holiday hours – Sun Sentinel
BrainTrust
Ryan Mathews
Founder, CEO, Black Monk Consulting
Recent Discussions
Discussion Questions
Considering the pressure on operations and personnel, are extreme extended holiday hours worth it for retailers? Have Kohl’s and Toys “R” Us scored a marketing coup by standing out for their 24-hour shopping marathons?
Poll
If they didn’t feel that they could make money, the stores would not be open. It’s a chance for consumers to make purchases when the stores are not busy, and an opportunity for employees to earn more money. I don’t see much of a downside.
Omnichannel is the new normal … where consumers are already shopping any time and everywhere. The challenge is the “delivery” in the last mile in the last day(s). Very hard for Amazon Prime to deliver on Christmas Eve (at least until the drones start flying).
Kohl’s and Toys “R” Us may score last minute sales from shopping procrastinators because they have items on the physical shelf for purchase. However, this year’s data clearly shows holiday shopping trends started earlier, even in October, preceding historical retail days like Black Friday.
While shopping marathon hours may get the press, results count. What are the few incremental sales worth relative to the toll on staff for extended hours?
I don’t think so.
After all, you have to do business on the day after Christmas, and the next day, and the next day and so on. If you burn out your associates and systems on a forced march for incremental holiday sales, it may cost you more than you anticipate in the long run.
I don’t see this so much as a marketing coup as a publicity stunt.
Unlikely as it may seem, one of these days Americans may get tired of hearing all the “consume at any cost” hype, and if/when that day comes it won’t be a good idea to be positioned as a retailer who exploited the holidays and their employees.
I’m with Ryan. It sounds like a great gimmick, but you really have to wonder how many people are going to be jumping in the car to knock out those last few items at 4 A.M. Gimmicks like this won’t help department stores compete with the world’s largest department store — Amazon.
I don’t know what justification these retailers used to make the 24-hour decision. I am sure they talked about a “marketing coup” or “great publicity.” But, in the end I hope it had everything to do with selling more and making money.
It seems like we’ve been here before and each retailer that has tried it has stepped back. I suspect we won’t see the same decision by Toys “R” Us or Kohl’s next year. If they can justify it again, bravo for them.
Just a one-word answer. “No.”
I’ll start with my usual full disclosure, that I worked for Kohl’s from 1982 to 2006. I gather that the company timed its extended hours to the opening of Star Wars, which has been a big focus of its merchandising this holiday season. But in 2016 (because of the leap year), Christmas falls two days later on the calendar. Does this mean that Kohl’s will need to up the ante and stay open for over 220 hours straight? In some ways this reminds me of retailers’ war over Black Friday hours (opening earlier and earlier and eventually on Thanksgiving itself), except that Kohl’s doesn’t have much company in this tactic.
The economics probably make sense, especially if Kohl’s (like other stores) has overnight crews emptying trailers or restocking shelves. And the added demands of omnichannel (processing BOPIS and ship-from-store orders) mean that overnight teams can focus on “task” while daytime teams can keep the register lines moving. As to the strain on personnel, that’s a different question entirely: The week after Christmas is at least as stressful on store management (dealing with both returns and clearance) as the week before.
The first retailer to stay open when their competitors do not can expect some benefits, however, I don’t think the increased sales and the employee stress will make the extended hours a long-term thing. In the case of stores who are not traditionally open for 24 hours, the staffing will most certainly be an issue when you need both stockers and cashiers to handle the sales rush (if any). I am not if enough consumers can shop between 2 and 8 a.m. to make it work.
If Kohl’s can make the 11:00 pm to 8:00 am time period work from their own culture — operations and personnel — they will have a winning formula. There are night owls among us who are comfortable in this time zone.
Kohl’s has to be certain that their associates are geared up to adjust to those consumers. The approval has to come from the customer, not from other members of the retail community.
I doubt and do not think it is worth the money invested in keeping the doors open. What no one has said or written about is whether or not staff is being compensated sufficiently for giving up their own shopping time. Or whether or not these overtime-type hours being forced on the part-time holiday help.
The first year it is a test. The second year assumes the test worked. Toys “R” Us must find value to the extended hours. Kohl’s may see similar value. Ideally, staying open makes them money. If it doesn’t, does the value of the PR they are getting by doing so make the expense of staying open worthwhile?
When a retailer provides flexibility to shoppers, there is always a way to justify a policy such as this one. But there is more to this than being “customer centric.”
An extended hours policy like this one impacts employees with an unwarranted hardship. Does anyone on this string know the compensation policy for employees working the graveyard shift or just extended shifts through this period? It would be enlightening to understand exactly how Kohl’s staffs for this marathon.
Generally speaking, I view the policy as an expression of desperation and panic rather than something that can be nicely gift wrapped as “customer centric.”
I would be much more likely to go straight to a retailer that I knew was open for 24 hours, than to take the time to search and find out who was open when I needed to shop. So that’s a huge advantage right out of the box.
It’s good, positive publicity, and, hopefully, good business.
And, whoever noted that this is a prime time for selling Star Wars items may be on to something.
As many colleagues here have stated, this is more of a publicity move to create buzz and hopefully incremental store traffic during those 179 hours. It’s a long ways from a marketing coup.
Each retailer has to make the decision on whether it’s worth it to be open 24 hours during the Holidays. Of course for c-store and gas station operators, they’re probably wondering “what’s the big deal here?”
Marketing coup is the important word when one does not consider their staff. Yes, this particular ploy may in fact work for this time. To be sure, it is not a new idea. We have seen retailers open on Thanksgiving or close on that day. However, this seems to be playing by inch. The most powerful effect we see is that connected and enabled consumers are more empowered than ever to navigate this.
It remains to be seen if the self fulfilling prophecy of when you have a sale that you sell is really any different at all now for consumers. Yes, you may be able to direct behavior for a short time, but will it really add up over the period? Considering the slow and late results in this season the answer appears to be mixed.
Meanwhile, the stress and imposition on employees is a clear loser. Retailers should consider this before extending the madness. In a world where specific dates like Black Friday are losing their power, does this really matter? Do your employees matter? That answer should always be yes.
I’m sorry, no “marketing coup” with me. I think of the employees working endless hours, likely having been asked a “one-answer question” about working those hours or simply scheduled without choice. I can understand extended hours with early openings and late closing to accommodate those of us who can’t shop during “normal shopping hours” but I just don’t get the marathon hours … I see it as a mistake on every level.
They have staff in the overnight shift for restocking, the question is whether it is worth the cashier hours and the revenue they may gain. With omnichannel, the expectation is being able to shop any time on the web. The question is whether they can profitably run the 24 hour store and how much personnel fatigue sets in after the run. As long as the shifts and personnel are managed properly, and customers are buying, it may give them the extra few dollars they want. I have to check to see how well they are stocked on Star Wars merchandises, and if they do, Dick Seesel is right, people may go there to buy their Star Wars clothing after watching the blockbuster movie.
I really couldn’t feel more meh about this and I’m one who is adamantly opposed to stores being open on Thanksgiving. If the retailers think they get the payback for being open 24 hours, then they should go for it. Apparently it wasn’t for Macy’s so they dropped it. Let the free market dictate if it is worth it for them.
Creates some buzz and cuts through some of the holiday hype with a different messaging slant. Shoppers know they don’t have to be worried about the store closing — they can hit it on their way home and spend their remaining credit card balance.
Though I think it’s silly, I’m not sure how much “pressure on operations and personnel” extreme hours exert: it’s not like some individual is actually being asked to work those 179 hours straight (at least I hope not). The fact that few stores are stooping to these levels suggests that common sense is ultimately prevailing. What a nice Christmas gift for the world THAT is.
Who needs to buy a stuffed animal at 2 in the morning? Not me. And with online, I can sit at home, which I do, and order what I want from Kohl’s and get the right size instead of hoping to find it at the store. I shop online from Kohl’s and they do a nice job of getting what I need at the same price, so again this idea is stupid and I doubt they will do it next year.
Kohl’s already posted hours for the holidays then decided last week to do this. It seems desperate and like they are not meeting their sales goals and somehow think this will help. Also don’t forget the shrink that takes place during these hours.
Also are the stores shippable during these hours? What is the staff like? I think most of us have been to 24-hour grocery stores that are very different at 2 A.M. than at 2 P.M.: messy, scary employees, loud rap music …
The pressure for this effort will fall squarely on the shoulders of the store managers, assistant store managers, and distribution managers. These men and women will be compelled to work longer hours producing more customer and store related tasks on a per hour basis. The full and part time associates will groan about the disruptive shift patterns and recovery times. The net result will be company measured in net profit dollars per hour increases or decreases.
Winners will be exalted for their capabilities and counted on for the same or better next year. The losers will receive a list of opportunities that will serve as a means to keep up with their own potential.
The one universal takeaway from these endeavors is lower employee moral which, as we all know, is a primary catalyst for lower consumer satisfaction ratings. Around the clock effective operations are largely dependent on the fact that it is normal operation practice and procedure. The employees know what they are facing when hired and managers are staffed and trained to the tasks at hand. The willingness to engage the potential for lower employee moral and in turn lowering or leveling customer satisfaction should be weighed against finding ways to improve both on a year-round basis.
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If they didn’t feel that they could make money, the stores would not be open. It’s a chance for consumers to make purchases when the stores are not busy, and an opportunity for employees to earn more money. I don’t see much of a downside.
Omnichannel is the new normal … where consumers are already shopping any time and everywhere. The challenge is the “delivery” in the last mile in the last day(s). Very hard for Amazon Prime to deliver on Christmas Eve (at least until the drones start flying).
Kohl’s and Toys “R” Us may score last minute sales from shopping procrastinators because they have items on the physical shelf for purchase. However, this year’s data clearly shows holiday shopping trends started earlier, even in October, preceding historical retail days like Black Friday.
While shopping marathon hours may get the press, results count. What are the few incremental sales worth relative to the toll on staff for extended hours?
I don’t think so.
After all, you have to do business on the day after Christmas, and the next day, and the next day and so on. If you burn out your associates and systems on a forced march for incremental holiday sales, it may cost you more than you anticipate in the long run.
I don’t see this so much as a marketing coup as a publicity stunt.
Unlikely as it may seem, one of these days Americans may get tired of hearing all the “consume at any cost” hype, and if/when that day comes it won’t be a good idea to be positioned as a retailer who exploited the holidays and their employees.
I’m with Ryan. It sounds like a great gimmick, but you really have to wonder how many people are going to be jumping in the car to knock out those last few items at 4 A.M. Gimmicks like this won’t help department stores compete with the world’s largest department store — Amazon.
I don’t know what justification these retailers used to make the 24-hour decision. I am sure they talked about a “marketing coup” or “great publicity.” But, in the end I hope it had everything to do with selling more and making money.
It seems like we’ve been here before and each retailer that has tried it has stepped back. I suspect we won’t see the same decision by Toys “R” Us or Kohl’s next year. If they can justify it again, bravo for them.
Just a one-word answer. “No.”
I’ll start with my usual full disclosure, that I worked for Kohl’s from 1982 to 2006. I gather that the company timed its extended hours to the opening of Star Wars, which has been a big focus of its merchandising this holiday season. But in 2016 (because of the leap year), Christmas falls two days later on the calendar. Does this mean that Kohl’s will need to up the ante and stay open for over 220 hours straight? In some ways this reminds me of retailers’ war over Black Friday hours (opening earlier and earlier and eventually on Thanksgiving itself), except that Kohl’s doesn’t have much company in this tactic.
The economics probably make sense, especially if Kohl’s (like other stores) has overnight crews emptying trailers or restocking shelves. And the added demands of omnichannel (processing BOPIS and ship-from-store orders) mean that overnight teams can focus on “task” while daytime teams can keep the register lines moving. As to the strain on personnel, that’s a different question entirely: The week after Christmas is at least as stressful on store management (dealing with both returns and clearance) as the week before.
The first retailer to stay open when their competitors do not can expect some benefits, however, I don’t think the increased sales and the employee stress will make the extended hours a long-term thing. In the case of stores who are not traditionally open for 24 hours, the staffing will most certainly be an issue when you need both stockers and cashiers to handle the sales rush (if any). I am not if enough consumers can shop between 2 and 8 a.m. to make it work.
If Kohl’s can make the 11:00 pm to 8:00 am time period work from their own culture — operations and personnel — they will have a winning formula. There are night owls among us who are comfortable in this time zone.
Kohl’s has to be certain that their associates are geared up to adjust to those consumers. The approval has to come from the customer, not from other members of the retail community.
I doubt and do not think it is worth the money invested in keeping the doors open. What no one has said or written about is whether or not staff is being compensated sufficiently for giving up their own shopping time. Or whether or not these overtime-type hours being forced on the part-time holiday help.
The first year it is a test. The second year assumes the test worked. Toys “R” Us must find value to the extended hours. Kohl’s may see similar value. Ideally, staying open makes them money. If it doesn’t, does the value of the PR they are getting by doing so make the expense of staying open worthwhile?
When a retailer provides flexibility to shoppers, there is always a way to justify a policy such as this one. But there is more to this than being “customer centric.”
An extended hours policy like this one impacts employees with an unwarranted hardship. Does anyone on this string know the compensation policy for employees working the graveyard shift or just extended shifts through this period? It would be enlightening to understand exactly how Kohl’s staffs for this marathon.
Generally speaking, I view the policy as an expression of desperation and panic rather than something that can be nicely gift wrapped as “customer centric.”
I would be much more likely to go straight to a retailer that I knew was open for 24 hours, than to take the time to search and find out who was open when I needed to shop. So that’s a huge advantage right out of the box.
It’s good, positive publicity, and, hopefully, good business.
And, whoever noted that this is a prime time for selling Star Wars items may be on to something.
As many colleagues here have stated, this is more of a publicity move to create buzz and hopefully incremental store traffic during those 179 hours. It’s a long ways from a marketing coup.
Each retailer has to make the decision on whether it’s worth it to be open 24 hours during the Holidays. Of course for c-store and gas station operators, they’re probably wondering “what’s the big deal here?”
Marketing coup is the important word when one does not consider their staff. Yes, this particular ploy may in fact work for this time. To be sure, it is not a new idea. We have seen retailers open on Thanksgiving or close on that day. However, this seems to be playing by inch. The most powerful effect we see is that connected and enabled consumers are more empowered than ever to navigate this.
It remains to be seen if the self fulfilling prophecy of when you have a sale that you sell is really any different at all now for consumers. Yes, you may be able to direct behavior for a short time, but will it really add up over the period? Considering the slow and late results in this season the answer appears to be mixed.
Meanwhile, the stress and imposition on employees is a clear loser. Retailers should consider this before extending the madness. In a world where specific dates like Black Friday are losing their power, does this really matter? Do your employees matter? That answer should always be yes.
I’m sorry, no “marketing coup” with me. I think of the employees working endless hours, likely having been asked a “one-answer question” about working those hours or simply scheduled without choice. I can understand extended hours with early openings and late closing to accommodate those of us who can’t shop during “normal shopping hours” but I just don’t get the marathon hours … I see it as a mistake on every level.
They have staff in the overnight shift for restocking, the question is whether it is worth the cashier hours and the revenue they may gain. With omnichannel, the expectation is being able to shop any time on the web. The question is whether they can profitably run the 24 hour store and how much personnel fatigue sets in after the run. As long as the shifts and personnel are managed properly, and customers are buying, it may give them the extra few dollars they want. I have to check to see how well they are stocked on Star Wars merchandises, and if they do, Dick Seesel is right, people may go there to buy their Star Wars clothing after watching the blockbuster movie.
I really couldn’t feel more meh about this and I’m one who is adamantly opposed to stores being open on Thanksgiving. If the retailers think they get the payback for being open 24 hours, then they should go for it. Apparently it wasn’t for Macy’s so they dropped it. Let the free market dictate if it is worth it for them.
Creates some buzz and cuts through some of the holiday hype with a different messaging slant. Shoppers know they don’t have to be worried about the store closing — they can hit it on their way home and spend their remaining credit card balance.
Though I think it’s silly, I’m not sure how much “pressure on operations and personnel” extreme hours exert: it’s not like some individual is actually being asked to work those 179 hours straight (at least I hope not). The fact that few stores are stooping to these levels suggests that common sense is ultimately prevailing. What a nice Christmas gift for the world THAT is.
Who needs to buy a stuffed animal at 2 in the morning? Not me. And with online, I can sit at home, which I do, and order what I want from Kohl’s and get the right size instead of hoping to find it at the store. I shop online from Kohl’s and they do a nice job of getting what I need at the same price, so again this idea is stupid and I doubt they will do it next year.
Kohl’s already posted hours for the holidays then decided last week to do this. It seems desperate and like they are not meeting their sales goals and somehow think this will help. Also don’t forget the shrink that takes place during these hours.
Also are the stores shippable during these hours? What is the staff like? I think most of us have been to 24-hour grocery stores that are very different at 2 A.M. than at 2 P.M.: messy, scary employees, loud rap music …
The pressure for this effort will fall squarely on the shoulders of the store managers, assistant store managers, and distribution managers. These men and women will be compelled to work longer hours producing more customer and store related tasks on a per hour basis. The full and part time associates will groan about the disruptive shift patterns and recovery times. The net result will be company measured in net profit dollars per hour increases or decreases.
Winners will be exalted for their capabilities and counted on for the same or better next year. The losers will receive a list of opportunities that will serve as a means to keep up with their own potential.
The one universal takeaway from these endeavors is lower employee moral which, as we all know, is a primary catalyst for lower consumer satisfaction ratings. Around the clock effective operations are largely dependent on the fact that it is normal operation practice and procedure. The employees know what they are facing when hired and managers are staffed and trained to the tasks at hand. The willingness to engage the potential for lower employee moral and in turn lowering or leveling customer satisfaction should be weighed against finding ways to improve both on a year-round basis.