Costco sits among the inner circle of retail giants that see the most foot traffic every year. The retailer has become ingrained in the American shopping experience through offering reasonable prices on a wide range of high-quality products that consumers know they can trust. Shoppers have become accustomed to driving to one of Costco’s many locations and walking through their sliding doors, but on May 26, every door will be closed.
For uninformed customers, seeing their doors closed could risk them moving to different retailers in the area. Why would Costco risk losing out on sales to competition, even if it’s just for one day?
Closing For One Day
As Costco ingrains itself into American culture, it has taken on certain standards and traditions that other retailers may be missing. It’s doors closing for one day is all about taking a step back and letting thousands of employees get their much-needed rest as they celebrate a special day with their loved ones.
Costco is closing all of its stores, which is a whopping 624, across every location in the United States for 24 hours. It doesn’t matter whether the store is a high-traffic urban area or a location in the suburbs; its doors will not open for anyone.
An Industry That Never Rests
Americans have become used to the retail sector being a living, breathing monster that never rests. No matter what day of the week, consumers can grab their car keys and drive to a shopping mall or stand alone retailer like Walmart, or Target, with the exception being Thanksgiving and Christmas Day. While these retailers only close on the most important holidays, Costco has a different approach.
This Memorial Day, every Costco will close while its rivals stay open. This is a calculated risk that is more about tradition and an opportunity to get some much-needed rest rather than profit margins.
Closing For A Day
Memorial Day this year is on Monday, May 26, 2025, less than a week away, and Costco won’t be open for it. Employees will lock up all 264 stores the night before, and they won’t be open again until Tuesday, the 27th, where normal business hours will continue as planned.
Decisions like this are part of Costco trying to feel more of a part of American culture, with millions of Americans kicking their feet back on the 26th, why should Costco employees have that taken away from them?
An Important Day
Memorial Day in America is an important tradition that’s about more than just relaxing and barbecuing with friends and family. It has a deep cultural heritage that dates back to the American Civil War. Since then, the holiday has been celebrated to remember all American soldiers who have made the ultimate sacrifice to ensure the security of their nation.
Costco is hopping on the patriotic wagon, and is giving employees a chance to celebrate this holiday, a benefit that many other staff working in other retail stores never get. It’s about more than revenue and profit margins.
Aiding The Workforce
Employees in the retail sector can face some harsh hours, and arguably sometimes don’t receive enough financial compensation. Many employees have to work on federal holidays. While many retail stores may be closed on important holidays such as Thanksgiving and Christmas Day, many stay open, and the majority of all retail stores stay open for other federal holidays like Labor Day.
Costco is looking to turn this routine year after year on its head by closing for what many Americans see as an important holiday that should be celebrated and commemorated.
Announcing It In Advance
Costco is being fully transparent with consumers by announcing store closures ahead of time. This should ensure that as many Costco shoppers are informed in advance and won’t drive to a location, only to be met with disappointment. This also ensures that loyal customers will know to shop at Costco in the week or weekend before their doors close for 24 hours.
Costco could also be setting itself up for a profitable weekend on the 24th and 25th of May, with consumers racing to buy out Memorial Day essentials, knowing they won’t be able to on the 26th.
Memorial Day Sales
Historically, Costco and other retailers have huge Memorial Day sales, which contribute to the impressive traffic across both weekend days. Most departments, including outdoor furniture and BBQ supplies will be marked down, as well as promotions on buying multiple items in more quantities. Consumers can expect to save anywhere from 20% to 30% on select items across different product ranges.
While Costco closes its doors on Memorial Day itself, the items will be available throughout the sale period, and Costco offers price adjustments on certain items that go on sale within 30 days of a purchase being made.
Risk Factors
While Costco and many other retailers expect to increase short-term revenue through the Memorial Day weekend, May 26 will put Costco at a disadvantage as many other retailers will keep their doors open, offering consumers a place to go while they are off work or need to buy last-minute celebration essentials.
Costco knows about these risk factors, but would rather improve morale and give its many employees an opportunity to celebrate and recharge before heading back to work on Tuesday, the 27th. This new tradition could have implications on the future of how other retail stores operate during federal holidays.
Retail Stores And Holidays
Many Americans seek out stores during federal holidays, either to buy celebration supplies, or to spend their time off wisely, going to places that are usually closed by the time they get off of work. This means that while Costco may close up shop for Memorial Day, consumers will still always need a place to go, and other retail stores are more than happy to accommodate them.
While there are benefits to having stores open during these holidays, the ethics around keeping employees from the festivities are questionable, and we will see how the future of retail is shaped as Costco makes an important choice in the best interest of its employees.
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