If there’s one thing Americans like to do in their spare time, it’s shopping.
Retailers often view their customers’ days off as an opportunity to do just that carry out promotions or else get a boost – but not so much at Costco.
The wholesale club has long had a policy of closing U.S. stores on seven holidays throughout the year. Costco is still hosting Labor Day sales, you just can’t get the deals at the warehouse on Labor Day itself.
“We think it is important that our employees can enjoy this holiday with their family/friends,” CEO Ron Vachris told Business Insider via email. “That is why we are closed these days.”
Costco’s decision to close for a week each year stands in stark contrast to the holiday schedules of most national chains, which typically closed for Thanksgiving and Christmas. Home improvement store Lowe’s will also close on a third day: Easter Sunday.
The list of days is not only posted on giant metal signs at warehouse entrances, but is also written into the Costco employee agreement, which is negotiated between employees and leadership every few years.
Former CFO Richard Galanti told Business Insider that the employee agreement is generally similar to the labor agreement Costco has with employees at locations with Teamsters union representation.
And while U.S. warehouses generate hundreds of thousands of dollars in sales every day, Galanti said the cost of closing was never a consideration during his tenure at the company.
“We never looked at the math,” he said. “If it’s the right thing to do, we’ll do it.”
At the same time, Costco has such strong loyalty among its members that sales during a holiday don’t disappear completely, but shift.
“You might lose some business that day, but you’ll get most of it back the day before or the day after,” Galanti said.
These are the holidays when US Costco warehouses are closed:
- New Year’s Day
- Easter Sunday
- Remembrance Day
- Independence Day
- Labor Day
- Thanksgiving
- Christmas Day
