Episode Summary: "When Do Boycotts Work?"
Podcast: The Indicator from Planet Money
Host: Waylon Wong
Producer: Julia Ritchie
Release Date: April 28, 2025
Introduction to the Target Boycott
Waylon Wong [00:28]: Introduces the recent boycott against Target, triggered by the retailer's decision to retract its diversity, equity, and inclusion (DEI) policies. This move marks a significant shift for a company that had previously championed racial equity initiatives.
Julia Ritchie [00:42]: Highlights the context of the boycott, emphasizing that Target had been a proponent of racial equity a few years prior, making the rollback an apparent misstep in the eyes of many consumers.
Initiation and Impact of the Boycott
Waylon Wong [00:50]: Details the origins of the boycott, spearheaded by Atlanta pastor Jamal Bryant, who initiated a 40-day boycott in March. This campaign was strategically timed to align with Easter.
Jamal Bryant [01:03]: Expresses the community's disillusionment: "Their currency does not ride with us. If in all of these years we have been loyal customers and clients and then in the moment of dis ease, you turn your back, I told them what I'm getting ready to tell you. We ain't going back in there." This statement underscores the feeling of betrayal among loyal customers.
Julia Ritchie [01:21]: Presents early indicators of the boycott's effectiveness: Target has experienced an 11-week decline in foot traffic, a 19% drop in share price, and decreased sales as reported by the CEO.
Historical Context of Brand Boycotts
Waylon Wong [01:33]: Introduces the broader theme of political boycotts and their increasing prominence in contemporary discourse.
Julia Ritchie [01:56]: Links the current Target boycott to broader national movements, referencing President Trump's executive orders in January that dismantled DEI initiatives within the federal government. This political shift influenced numerous corporations, including Target, McDonald's, and others, to retract their own DEI policies.
Waylon Wong [02:19]: Mentions previous instances of similar boycotts, specifically the one against Goya Foods during Trump's first term, studied by Yura Loconida, a marketing professor at Cornell University.
The Goya Foods Boycott Case Study
Julia Ritchie [02:40]: Recounts the 2020 incident where Goya’s CEO, Robert Unanue, met with Trump, promoting Hispanic and Latino entrepreneurs, which sparked backlash from the left.
Waylon Wong [02:56]: Quotes an example of backlash: "We're all truly blessed at the same time to have a leader like President."
Jamal Bryant [03:01]: Adds another dimension: "Trump, who is a builder."
Julia Ritchie [03:03]: Observes that Trump's flattery of Goya led to significant consumer mobilization, with the left boycotting and conservatives purchasing more Goya products.
Yura Loconida [03:25]: Analyzes the impact: "What we observe is that it was a boost in sales around 20%, but it was very short lived, like up to a month."
Julia Ritchie [03:39]: Notes that while the boycott initially stalled Goya, there was a temporary sales boost driven primarily by conservative customers, especially in Republican-leaning counties.
Framework for Assessing Boycott Effectiveness
Yura Loconida [04:23]: Introduces three key factors to determine the economic effectiveness of a boycott:
- Core Customer Base Alignment: Do the brand’s policies conflict with the values of its primary customers?
- Substitutability: Can consumers easily switch to alternative brands?
- Essentiality and Convenience: How integral is the brand to consumers' shopping habits and convenience?
Julia Ritchie [04:12]: Emphasizes the importance of understanding the brand's customer demographics and their alignment with the boycott's goals.
Yura Loconida [04:20]: Discusses "substitutability": "Can you swap this brand easily for something else?"
Case Study: Bud Light Boycott
Julia Ritchie [04:27]: Brings up the Bud Light boycott from April 2023, ignited by the brand's partnership with trans influencer Dylan Mulvaney.
Yura Loconida [04:36]: Shares a consumer reaction: "This month I celeberate day 365 of womanhood and Bud Light sent me possibly the best gift ever, a can with my face on it."
Julia Ritchie [04:45]: Describes the conservative backlash, including influential figures like Kid Rock advocating for a boycott.
Waylon Wong [05:04]: Remembers vivid boycott imagery: "Who could forget Kid Rock shooting up a pyramid of Bud Light cans in his backyard?"
Julia Ritchie [05:12]: Admits the emotional response: "I've tried very hard to forget, Julia."
Waylon Wong [05:35]: Highlights the severe impact on Bud Light: "Bud Light sales did take a steep and prolonged hit in the months that followed. Nearly 30% from Euro's research."
Julia Ritchie [05:28]: Attributes the decline to the ease of substituting Bud Light with other domestic beers like Coors or Miller Lite.
Yura Loconida [05:43]: Links substitutability to long-term pressure on retailers: "this substitutability factor is likely to determine whether the retailer feels ongoing pressure from customers in the long run."
Implications for Target and Similar Brands
Yura Loconida [06:13]: Discusses Target's competitive landscape, mentioning Walmart, Costco, and online giants like Amazon, which buffer the impact of the boycott.
Julia Ritchie [06:20]: Reports on the meeting between Target CEO Brian Cornell, Reverend Al Sharpton, and Pastor Jamal Bryant to address the boycott's concerns.
Target's Response [06:42]: The company reiterates its commitment to fostering an inclusive environment: "creating a welcoming environment for all team members, guests and suppliers."
Ripple Effects on Minority-Owned Businesses
Waylon Wong [06:42]: Explores how DEI rollbacks affect Target's vendors, particularly minority-owned businesses like Rucker Roots, a black-owned natural hair care company.
Jamal Bryant [07:07]: Shares the personal impact on Rucker Roots: "It's so scary because a lot of times when you are a supplier like Rucker Roots, you are planning on having inventory for these retailers up to, you know, six to nine months prior."
Ellen Rucker Sellers [07:45]: Expresses the unsettling nature of the DEI rollbacks on their business operations.
Jamal Bryant [08:21]: Advocates for a balanced approach: "don't boycott so much that these black businesses that are worked blood, sweat and tears that they will go bankrupt from these boycotts because, you know, then that's just not the right strategy that we want to see."
Future Outlook and Recommendations
Jamal Bryant [08:35]: Outlines his vision for Target's future commitments: Investing in black-owned banks, partnering with historically black colleges and universities, and reimagining effective DEI strategies in the current political climate.
Yura Loconida [08:50]: Summarizes the framework's applicability: Understanding core customer alignment, substitutability, and the essential nature of the brand can help predict the success of a boycott.
Conclusion
The episode delves into the mechanics and ramifications of consumer boycotts, using Target and Bud Light as primary examples. Through expert analysis and real-world case studies, "When Do Boycotts Work?" explores the delicate balance between consumer activism and its unintended consequences on minority-owned businesses. The discussion emphasizes the importance of strategic engagement over punitive measures to foster genuine corporate accountability and inclusivity.
Production Credits:
Produced by Cooper Katz McKim
Engineering by Sina Lofredo and Robert Rodriguez
Fact-checked by Tyler Jones
Edited by Kate Concannon
The Indicator is a production of NPR.