Economic boycotts tied to national reactions to the actions of the US Immigration and Customs Enforcement (ICE) agency are growing, though at this point, they seem to be having minimal impact.
There was one last Friday that was organized by The People’s Union USA, which describes itself as a “grassroots movement dedicated to economic resistance, government accountability, and corporate reform.”
Axios reports that “ICE Out protests have prompted Main Street businesses across the country to close in solidarity, but the boycotts have yet to reach the registers of America’s biggest retailers … The lack of impact on major retailers so far underscores the limits of protest-driven economic pressure.”
Meanwhile, National Public Radio (NPR) reports that “protesters across the U.S. on Saturday demonstrated against the federal government’s immigration enforcement tactics in Minneapolis. The group 50501 called on communities to shut ‘ICE Out of Everywhere’ in a national day of action.
“The anti-ICE protests include calls for boycotts against retailers and businesses perceived to be in cooperation with U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection. In Washington, D.C., a coalition of organizations picketed Target stores. The retailer is headquartered in Minneapolis.”
NPR reports that “in an email to NPR, Target defended its response to the recent turmoil in its home city and highlighted an open letter the company’s incoming CEO Michael Fiddelke signed in partnership with the Minnesota Chamber of Commerce and 60 CEOs of businesses in the state. The letter calls for a de-escalation of tensions between local, state, and federal officials.
“Videos widely shared earlier this month show federal agents tackling and detaining two Target employees at a store in Richfield, a suburb of Minneapolis. Local media reported the employees are U.S. citizens.
“Target declined to comment specifically on the incident, but said it shared with its teams that ‘Target does not have cooperative agreements with ICE or any other immigration enforcement agency.’ The retailer also declined to comment on the requests made by demonstrators on Saturday.”
Axios points to what appears to be the limited impact of the protests: “‘If a boycott was working, the sales numbers would tell the story,’ Neil Saunders, managing director of retail at GlobalData, tells Axios. ‘We would see growth plunge and even push into negative territory. This very rarely happens — and isn’t happening right now.’
“Reality check: Research on consumer boycotts suggests most fail to produce lasting sales declines, particularly at large national retailers, because participation is difficult to sustain and shopping habits are hard to change.
“Saunders said any real impact would show up first in daily retail sales data but would need to persist over time to signal a genuine shift in consumer behavior.”
Axios notes that “large national chains are better positioned to absorb short-term disruptions than small businesses, even when they’re the stated target of boycott calls.” But, “even if big retailers remain insulated for now, protest-driven disruptions can still have outsized effects on small businesses — highlighting the uneven economic impact of movements aimed at pressuring major corporations … Analysts say sustained participation over days or weeks — reflected consistently in retail sales data — would be the clearest signal that protest-driven boycotts are escalating into a broader business issue.”
Meanwhile, Business Insider reports on a new front being opened in this cultural battle:
“Economic boycotts are a familiar tool of protest. The problem is they often place the greatest strain on the smallest businesses.
“That was the case during Friday’s nationwide general strike, which was designed to pressure the Trump administration to dial back its aggressive anti-immigration policies.
“For many small business owners, the shutdown created a dilemma. Supporting the cause often means losing a day’s revenue and risking their ability to keep staff employed. Across social media, owners voiced solidarity alongside an apology for staying open.
“There may, however, be another way, according to Scott Galloway, a marketing professor at New York University famous for his critiques of Big Tech.
“Instead of a blanket shutdown, Galloway is calling for Americans to focus on major tech companies by unsubscribing from — or opting out of — services like OpenAI’s ChatGPT, Amazon’s Prime Video, and Microsoft Office.
“A targeted boycott starting on Sunday and lasting the entire month of February could move markets, he says, which would, in turn, affect the CEOs who have the ear of President Donald Trump.
“‘We’re proposing something quieter and less cinematic than a protest that will run all day on cable TV, but much more disturbing to the Trump administration. A one-day slowdown is irritating. A one-month slump is terrifying,’ he wrote in a blog post announcing the boycott.
“Major tech CEOs have sought favor with the president during his second term. Many of them donated to his inauguration, for starters.
“AI executives, like OpenAI CEO Sam Altman and Meta CEO Mark Zuckerberg, also accepted an invitation to a White House dinner with Trump in September, where the leaders took turns lauding the president. Apple CEO Tim Cook and Amazon CEO Andy Jassy attended the White House premiere of the documentary about first lady Melania Trump at the height of January’s anti-ICE protests in Minneapolis.”
KC’s View:
It seems unlikely at this point that these protests are going to affect the supermarket industry. Retailers to whom I’ve spoken quite rightly have said that no matter how they feel about ICE and its actions, they serve people on all points of the political spectrum and that they are, in fact, essential to their ability to live their lives.
Unlikely at this point. The thing is, in some ways we are living in unprecedented times, and there may come a point where neutrality no longer will be a practical option. Plus, to this point the Trump administration’s moves to take direct equity stakes or investment rights in public companies – described by some economists as “state corporatism” – has not extended to supermarket retailers or CPG manufacturers.
I do think that businesses of all kinds, including retailers, have to be aware of this public discontent and where it could lead in terms of social unrest, political protest and even civil disobedience.
Some retailers who whom I’ve spoken are highly concerned about what I would describe as a abject failure of either political party to come up with a nuanced and practical response to the nation’s illegal immigration problem. The fact is that elements of the economy – especially the food industry – are highly dependent on undocumented immigrants to do jobs that many US citizens do not want, and they want to see a real solution, not performative and cruel actions that hurt business, the country, and hard-working families.
I do think that the Scott Galloway approach is interesting. I know a lot of people who are unsubscribing from Amazon Prime because they’re fed up with Jeff Bezos and Andy Jassy. I know a lot of people who reducing their streaming subscriptions because they are upset with the actions of corporate chieftains. In my case, I’ve decided not to upgrade my iPhone nor lease a new laptop – which I was scheduled to do next month – simply because I find some of Tim Cook’s actions to be unsettling. I’m not leaving Apple’s ecosystem, but for the time being I am not spending money I was planning to spend. Not a big thing. But something.
Will this all add up to the kind of economic pressure that will change public policy? I don’t know. But as I said above, we’re living in unprecedented times, and I think retailers have to be more aware than ever about their customers’ concerns beyond “what’s for dinner.”
Bottom line: Cultural issues can become business issues. Attention must be paid.
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