Why are Some Retailers Insane?

According to recent studies, four out of ten Americans have shifted their spending over the last few months to align with their moral views. About a third of Americans, especially young spenders, reported having no interest in supporting the economy this year. About a quarter of respondents have even stopped shopping at their favorite stores because of their political beliefs. This isn’t new, but it’s worse.

Bud Light’s 2023 marketing partnership with transgender influencer Dylan Mulvaney hurt InBev. Usually boycotts and social media commentary lose steam after a few days, but not that time. Bud Light picked a fight it couldn’t win and demonstrated it did not understand its customer base. In very short orde.

The Target brand remains among the top five most popular department stores in the U.S. However, Target’s shares have vacillated significantly, depending on which group they offended.

Some conservative groups called for a boycott of Target over its Pride collection, accusing the company of pushing a “woke” agenda. However, when the company changed direction, progressive and LGBTQ+ advocates criticized Target for not standing by its commitments to inclusivity.

Starbucks has no trouble keeping customers in the boat—at least not usually. But it does occasionally invite ire when it takes a stand on a social issue. In 2015, the company encouraged baristas to write “Race Together” on cups and engage customers in conversations about race. Did Starbucks forget that many of us don’t want to have a conversation with anyone, much less strangers, until after we’ve had copious amounts of coffee? And even then, most of us don’t want to discuss sensitive issues with people we don’t know, including our favorite barista.

The first significant boycott of Chick-fil-A began in 2012. The controversy arose when the company's CEO made public statements expressing his opposition to same-sex marriage. He stated that Chick-fil-A was "guilty as charged" for supporting the traditional definition of marriage.

Many people viewed Chick-fil-A's stance as discriminatory and harmful to the LGBTQ+ community. In response to the controversy, there were calls for boycotts as well as protests and counter-protests at various Chick-fil-A locations across the United States.

Chick-fil-A found itself in the headlines again when they appointed Erick McReynolds, VP, Diversity, Equity, & Inclusion, a decision that would have gone unnoticed had the company remained neutral previously. However, they alienated conservatives who didn’t agree with that decision and started boycotting.

Gambling with customer loyalty makes no sense during ordinary times; during tumultuous economic times, it too often causes capsizing. Companies that have been willing to nosedive into areas controversial enough to impact their shareholders have board directors and investors scratching their heads. Mine’s a little itchy too.

When I help clients with growth initiatives, I encourage sentience—a clear awareness of who they are, who their customers are, and the internal and external environments in which they do business. Having clear answers to these questions helps formulate strategy, but it does more. It encourages decision-makers to remain neutral on everything that doesn’t directly affect the company.

The definition of insanity is doing the same thing and expecting different results. Do what my clients do: Stick to your knitting and watch your customer satisfaction soar.