Macy's is doing an all-nighter

Jennifer Blaha doesn't drink coffee. But her Diet Pepsi intake has risen since Monday, when the Rosedale Macy's began its experiment to stay open around the clock until 6 p.m. Christmas Eve. Blaha, the store manager, figures she'll be walking the floor, thanking customers and assisting sales associates for more than half of the 83-hour stretch.

Rosedale is one of 12 Macy's stores that opened at 7 a.m. Monday and won't lock the doors until 6 p.m. Thursday. This is the fourth year the Cincinnati-based department store chain has opened some of its locations day and night, and the first year it's trying it in Minnesota.

Call it the buy-anytime economy. Macy's is one of many store chains keeping the lights on longer to cater to recession-weary shoppers who are still hesitant to spend.

"It's hard enough today to get anyone to open their purse," said Marshal Cohen, a retail analyst with market research firm NPD Group. "Now if I can be open and nobody else is, then I've got an even better shot."

Several retailers, such as Kohl's and Target, had some stores staying open until midnight in recent weeks. Some Toys 'R' Us locations closed at 1 a.m.

The Rosedale Macy's was selected as a 24-hour location this summer. The company claims no other Minnesota location was a strong candidate. "We're positioned well on 35W and [Hwy.] 36, I have a team that responds so well to trying new things for our customers and for our business," Blaha said. The Rosedale store already had an overnight crew restocking shelves in the days before Christmas anyway, so it was relatively easy to get the store ready for consumers.

But Blaha said the most important determinant was having shoppers who wanted extended hours. "We found last year that we were, in some cases, closing our doors on our customers," Blaha said. "It doesn't feel good to them, doesn't feel good to us."

Moonir Osman of Minneapolis usually stays up late with his wife. As Muslims, they turned up at Macy's on a quest for winter boots, not Christmas shopping. "There are great sales; I've never seen them this low," he said. But if it weren't for the all-night hours, it's unlikely that Macy's would have captured the sale. "This is now my third time in my life I've been to Rosedale," he said. "I'm not really a normal Macy's shopper ... usually I would go online."

Opportunities for buyers, too

Cohen says today's consumers are so busy working, raising families and juggling other obligations that finding time to shop is a challenge. "By being open 24 hours, it gives opportunities to some of those needy shoppers who are trying to make up for lost time," he said. "As a retailer, it gives you untethered competition. If I'm open and you're not, I'm getting that share of the dollar."

Macy's wouldn't share details about the profitability of this strategy, or whether Rosedale has met its sales goals. "If it was something that was extremely, monumentally profitable, let me tell you, we'd probably have more than 12 stores doing it," spokeswoman Andrea Schwartz said.

At 1:30 a.m. Wednesday, the Rosedale store wasn't empty, but it wasn't crowded either. Shoppers rarely had to wait in line; staffing was robust. Close parking spaces were plentiful.

Employees work all three nights so there is staffing consistency, are paid a night differential and can earn overtime. The extra money most appeals to workers who are also attending college, Speed said. Working Wednesday night also means no shift on Christmas Eve, which is a big draw for workers who are traveling, hosting family or scrambling to do that last-minute shopping of their own.

Some retailers, such as CVS and Walgreens, are even opening on Christmas.

And many stores invite consumers in early the day after Christmas. J.C. Penney, for example, opens at 5 a.m. Saturday; Kohl's and Macy's open at 6 a.m., and Target opens at 7 a.m. Hours may vary by location.

"You're witnessing the beginning of a new tradition right in front of your eyes," said Cohen, the retail analyst. "Holidays are no longer sacred. They are now retail opportunities."