An economic boycott on Friday, Feb. 28 targeted major corporations and consumer conglomerates in response to varying political issues. The public spending freeze, also known as “Black Out Friday,” was organized by the People’s Union USA, and encouraged protesters to avoid spending any money on Feb. 28. While the results are not entirely conclusive, the blackout seems to only have yielded mild reverberations.
Community leaders from across America urged the public not to buy from major retailers like Walmart, Target and Amazon as part of the boycott. Protesters attempted to showcase the power of the consumer against “corporate greed” and companies in alignment with President Donald Trump’s efforts to terminate diversity, equity and inclusion initiatives. If protesters did have to spend, they were encouraged to use cash and support only small, locally owned businesses. Professors in Grand Valley State University’s Department of Economics deemed the boycott only slightly successful.
USAToday tracked the boycott’s origination and its influence on companies across the United States. Despite the inconclusive data due to the narrow time frame, there was a slight impact on Feb. 28’s market. Data collected from digital marketing intelligence company Similarweb showed that overall online traffic from the top 100 e-commerce sites dropped 4% on Feb. 28 when compared to the previous Friday, Feb. 21. Data from marketing intelligence firm Placer.ai found foot traffic in-store at Walmart locations to have dropped 6.3% when compared to the previous five Fridays. Placer.ai data also showed Target’s foot traffic in-store dropped 10.7% compared to the previous five Fridays.
Daniel Giedeman, an economics professor at GVSU, said the protest was unlikely to have much impact since participating consumers likely switched the timing of their purchases to Feb. 27 or March 1. Giedeman said he also expected there to have been at least some consumers who deliberately chose to spend money on Feb. 28 because they did not agree with the protest.
“The only way that a protest like this could really work is if consumers were willing to change their spending patterns for a much longer period of time or to permanently switch their spending toward small businesses (or businesses that were more aligned with consumers’ values),” Giedeman said.
While short-term boycotts and protests usually don’t have the momentum or impact to make a lasting difference, they are a step in the right direction. Giedeman said similar protests, like not purchasing gasoline on certain days in an attempt to lower gas prices, are rarely successful. However, when customers collectively target where they spend their money or what businesses they support for a sustained amount of time, the effects can be much bigger.
“Such protests would work if large groups of consumers targeted their boycotts against specific goods or companies, and were prepared to maintain these boycotts indefinitely,” Giedeman said. “Given the one-day nature of the (Black Out Friday) protest, there were no meaningful impacts on corporate profits or stock market prices.”
Christopher John Cruz, an associate professor in the Economics Department, agreed with Giedeman’s conclusion. Cruz reiterated that a one-day spending freeze would not be successful; if protesters want to create a larger impact, then boycotts have to be on a more sustained basis.
“An alternative strategy for these protesters is (to) totally switch (the) stores where they shop,” Cruz said. “For instance, there are reports of some consumers cancelling their Amazon membership,” Cruz said. “With the DEI rollback from Walmart, perhaps some consumers might strictly prefer Costco (to) Sam’s Club, (which is owned by Walmart).”
Cruz recommends that anyone interested in participating in a boycott research the businesses they frequent. If a company’s values do not align with personal views, then an alternative can be found. According to Cruz, while that alternative isn’t always a local business, they can often be a better option than chain retailers.
“Not all local businesses share the views of these protesters,” Cruz said. “In fact, some of them might have voted against the very principles and programs these protesters are fighting for.”
While the Black Out Friday protest had only minimal effects on the market, the boycott could potentially inspire consumers to further consider their morals and ethics when shopping.
“If a sizeable number of consumers switch to local retailers, including small businesses, (that) they believe are doing business that is more aligned with their morals and principles, then the impact might be more meaningful,” Cruz said.
