When do boycotts work?

Summary

Episode Summary: "When Do Boycotts Work?"

Podcast: The Indicator from Planet Money
Host: Waylon Wong
Producer: Julia Ritchie
Release Date: April 28, 2025

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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:

1. Core Customer Base Alignment: Do the brand’s policies conflict with the values of its primary customers?
2. Substitutability: Can consumers easily switch to alternative brands?
3. 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.

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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.

Transcript

[Waylon Wong]

Npr.

[Julia Ritchie]

This is the Indicator from Planet Money. I'm Waylon Wong, joined today by producer extraordinaire Julia Ritchie.

[Waylon Wong]

Hello. Hello, Waylon. Like me, I know you love a weekend trip to a big box store. Mm.

[Julia Ritchie]

Sample Saturdays. Absolutely.

[Waylon Wong]

But one big box retailer has been having a rough go of it lately. Target. The chain has been the subject of a boycott over its decision to roll back diversity, equity and inclusion policies. You know, dei, it's been in the news a lot recently.

[Julia Ritchie]

Whalen. It is an about face for a chain that had enthusiastically promoted racial equity causes just a few years ago.

[Waylon Wong]

Well, Atlanta pastor Jamal Bryant organized a 40 day boycott against the store beginning in March to coincide with lint. And after meeting with Target CEO earlier this month, he shared this update with his congregation on Easter.

[Jamal Bryant]

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.

[Julia Ritchie]

The early data indicates that this boycott has taken a toll. Foot traffic at the retailer has been down for 11 consecutive weeks. Target share price is down about 19% and its CEO says sales are down.

[Waylon Wong]

Political boycotts are nothing new, but they are getting more attention. So we wanted to know, when does a boycott actually make a difference? Today on the show, we talk to a researcher about how to measure the impact of a brand boycott and how one company is caught in the crosshairs.

[Julia Ritchie]

In January, President Trump signed two executive orders calling for the termination of diversity, equity and inclusion offices, positions and programs in the government. Although the orders only apply to the federal government, many corporations from McDonald's to Target followed suit, rolling back their own DEI policies, including those designed to diversify their workforces.

[Waylon Wong]

While Target is bearing the brunt of the backlash, it's not the first brand to face a consumer boycott for seeming to roll over for the Trump administration. Trump's first term was notorious for these kinds of stories, stories that Yura Loconida began studying. She's a professor of marketing at Cornell University. And the first consumer boycott she studied was the Hispanic food company Goya.

[Julia Ritchie]

Oh, I do remember this. It was so many boycotts ago, though.

[Waylon Wong]

I know. Please jog my feeble memory.

[Julia Ritchie]

So in 2020, former Goya Food CEO Robert Unanue made a friendly appearance with Trump in the Rose Garden to promote Hispanic and Latino entrepreneurs.

[Waylon Wong]

We're all truly blessed at the same time to have a leader like President.

[Jamal Bryant]

Trump, who is a builder.

[Julia Ritchie]

His flattery irked a lot of people on the left, so many boycotted the brand. Meanwhile, conservatives were encouraged to add Goya to their grocery baskets.

[Waylon Wong]

Jura says the headlines were divided between boycott versus boycott, which means like go buy more of this brand. She and her co authors crunched the numbers to find out which side came out on top for Goya boycott.

[Yura Loconida]

What we observe is that it was a boost in sales around 20%, but it was very short lived, like up to a month.

[Waylon Wong]

So the boycott won temporarily.

[Julia Ritchie]

Jura says it's hard to directly correlate how much of this bump was customers rallying to Goya's side. But the numbers showed a disproportionately higher increase in sales in Republican leaning counties.

[Waylon Wong]

Jura also noticed that among Latino households, beyond maybe like a slight dip, there was not much of a difference in the baseline.

[Julia Ritchie]

Right. So this observation led Yura and her colleagues to develop a sort of framework for how to determine whether a boycott will be effective economically. Factor number one, who are the brand's core customers and does the brand's stance conflict with those consumers?

[Waylon Wong]

Factor two, can you swap this brand easily for something else? Yura calls this factor substitutability.

[Julia Ritchie]

Say that three times fast, no way.

[Waylon Wong]

And this factor played a big role in another boycott she studied on Bud Light.

[Julia Ritchie]

You may remember In April of 2023, Bud Light and its parent Anheuser Busch came under fire for a partnership with trans influencer Dylan Mulvaney.

[Yura Loconida]

This month I celebr day 365 of womanhood and Bud Light sent me possibly the best gift ever, a can with my face on it.

[Julia Ritchie]

Far right influencers and Fox News pundits piled on and called for a boycott. Kid Rock, for one, also spoke up. Let me say something to all you and be as clear and concise as possible.

[Waylon Wong]

Who could forget Kid Rock shooting up a pyramid of Bud Light cans in his backyard?

[Julia Ritchie]

I've tried very hard to forget, Julia.

[Waylon Wong]

Sorry. Bud Light sales did take a steep and prolonged hit in the months that followed. Nearly 30% from Euro's research. And Yura says it's probably because it was easier for consumers to substitute another domestic beer like Coors or Miller Lite or Michelob Ultra.

[Julia Ritchie]

I have to say my palate is not nuanced enough to tell the difference between any of those beers you just listed.

[Waylon Wong]

Ah, I'm a Tecate drinker personally. But the two brands that benefited most from the Bud Light backlash were Coors Light and Miller Lite for the Target boycott.

[Julia Ritchie]

Jura says this substitutability factor is likely to determine whether the retailer feels ongoing pressure from customers in the long run.

[Yura Loconida]

I think the question then comes down to, like, how essential is Target in their shopping experience and their convenience experience and what are the other alternative options? Like, you know, do you stop on Target on your way back from work? Is it much more inconvenient for you to stop somewhere else?

[Waylon Wong]

Target already faces competition from Walmart and Costco, not to mention the growth of online retailers like Amazon.

[Julia Ritchie]

Earlier this month, Target CEO Brian Cornell met with the Reverend Al Sharpton and Pastor Jamal Bryant to discuss the boycot. We reached out to Target to ask if the retailer was reconsidering its decision on its DEI policies. The company responded with an email saying it has an ongoing commitment to creating a welcoming environment for all team members, guests and suppliers.

[Waylon Wong]

These policy rollbacks aren't just a consideration for a politically engaged customer base. It also affects Target's vendors. That includes minority owned businesses that the boycott aims to support. Take Rucker Roots. It's a black owned business from Lancaster County, South Carolina. They sell natural hair care products like shampoos, growth serums and scalp oil. Ellen Rucker Sellers and her sister Ione Rucker Jamison run the company.

[Jamal Bryant]

Our parents had eight children and out of the eight, there were four girls. And my mother used to use these wonderful kitchen concoctions, you know, refrigerated items like mayonnaise and olive oil and avocado and different things like that and make hair masks for our hair.

[Waylon Wong]

Rucker Roots launched in Sally beauty supply in 2018. Target was their second big retail contract. They're a successful company that now has seven retail chains nationwide. Ellen says when she first heard about the DEI rollbacks, it was unsettling for me.

[Jamal Bryant]

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.

[Julia Ritchie]

They've invested a lot to increase their inventory to keep shelves stocked so any drop off in customers could mean fewer sales. Ione and Ellen are discouraged by the DEI rollbacks, but they're also conflicted on the boycott and they want retailers to keep black owned businesses front of mind.

[Jamal Bryant]

You know, 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.

[Waylon Wong]

You know, the Atlanta pastor leading these boycotts, he says he wants to see Target increase its commitments to the black community. That includes investing in black owned banks, partnering with historically black colleges and universities, and to reimagine what a more effective DEI could look like in the Trump era. This episode was produced by Cooper Katz McKim with engineering by Sina Lofredo and Robert Rodriguez. It was fact checked by Tyler Jones, Kate Concannon is the show's editor and the Indicator is a production of NPR.