While customers shop at retailers across the country on Thanksgiving, Target was closed. Just before the holiday, the company had said its stores will remain close on Thanksgiving forever but could it be the worst mistake it would make?
The company first announced the decision during the pandemic last year. Discounts are usually abundant during the holiday, making it a big deal for many people across the country.
While some believe that a firm would lose out on revenue on a day many people tend to buy more because of the discounts. But Target is not really starved for revenue these days.
The retail giant made $25.65 billion in revenue, exceeding the $24.78 billion analysts were expecting. Meanwhile, net income rose to $1.49 billion last quarter, up from $1.01 billion a year ago.
Target managed to survive while other retailers struggled due to losses caused by the pandemic. Its status as an essential retailer allowed it to gain that edge.
The retailer has gone big on product delivery, ramping up its same-day shipping service as well as introducing options like curbside pickup and BOPIS (buy online, pay in-store) to cater to a range of customer needs.
Some have argued that by closing down on the holiday, Target will endear itself to people who believe that retailers should not open that day in order to allow staff spends time with their families. Some states have barred big-box stores from opening on Thanksgiving Day.