Nordstrom’s abandonment of the Ivanka Trump brand earlier this month turned many heads, with brands such as Neiman Marcus, TJ Maxx and Sears following suit. Nordstrom claims its decision to drop the Ivanka Trump-branded products was performance-related and not political, but at least part of the reason sales were down was due to a boycott effort by a group called #GrabYourWallet. Whatever the true motivation, Nordstrom’s move is being perceived as political by both sides.
The RTP team discusses whether it’s ever a good idea for retailers to get involved in today’s political discourse. Is it possible for retailers to stay completely out of politics in today’s polarized environment? Are there ways retailers can take a stand with minimal harm to their brand?
Debbie Hauss, Editor-in-Chief: It’s always a risk to take sides on any controversial issue, but if the executives running a business or brand feel strongly enough to make a public statement, then what better way than discontinuing the sale of a brand, or creating a compelling Super Bowl ad. Personally, I do react if I hear a C-level executive make a statement I find offensive. I may think twice about spending my hard-earned money on that brand in the future. That said, it is effective. At the same time, if executives are concerned about the long-term effects on their business, their employees and their local economy, they may want to reconsider such a public outcry.
Adam Blair, Executive Editor: Many consumers indulge in “retail therapy,” a.k.a. shopping, to escape the harsh divisiveness of today’s political climate. Unfortunately for these folks, as a New York Times headline recently stated, “Shopping Becomes a Political Act in the Trump Era.” Like these shoppers, retailers would also be happier if they could avoid being dragged into these conflicts: who wants to alienate a whole voting bloc’s worth of potential customers? The problem is that with a businessman as president, particularly one that has refused to distance himself from his companies, this state of affairs seems to be part of the new reality. What can retailers do? Like the Boy Scouts, they should Be Prepared for a potentially rocky four years. The Times article quotes Andrew Gilman, chief executive of the crisis communications firm CommCore Consulting Group, saying: “Companies are nervous. I know several companies that have war rooms set up. They have playbooks on what to do if there is a product recall or if the C.E.O. has a heart attack. Now they have a different chapter on how to deal with a tweet from the president.”
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David DeZuzio, Managing Editor: If Nordstrom’s decision to drop Ivanka Trump’s merchandise was based solely on the fact that her brand suffered a 70% drop in sales in the weeks leading up to the election (and a 32% drop overall) that’s one thing. If it’s to take a political stand and bow to an aggressive boycott campaign, that’s another. Remember, when it comes to divisive figures, no matter which side you choose, there are rewards and consequences to your actions. Now, Burlington has followed suit with its online offering and even Sears and Kmart are pulling the plug on Trump products. For the latter, this move may either be ill-advised or a stroke of genius, as these chains have much bigger worries than one specific brand not selling well. Naturally, at this point, you can’t pull any Trump-related brands without it turning into a political statement, so retailers should tread carefully. As I’ve said before, do consumers really need a list of what and who their retailers believe in or support to buy things? In the same vein, should retailers stock products from brands that only share their same beliefs? For the fun of it, let’s say the answer to that is no. Let the shoppers decide with their wallets if someone’s brand is giving them what they want. Hey, if you’re a retailer or shopper really counting down the days, check this out to either plan ahead for a new president or look forward to four more years. Either way, retailers should stick to what they do best: selling products; not opinions and ideologies.
Klaudia Tirico, Features Editor: In my opinion, the question of whether it is possible for retailers to stay completely out of politics in today’s environment gets a “you’re damned if you do, you’re damned if you don’t” answer. If you do, you are either praised or trolled; if you don’t, people will question why you’re not taking a stand against the issue. But if a retailer feels strongly about making a statement and isn’t worried about the backlash, who are we to say they should stay silent? If a retailer decided to go the Nordstrom route and drop a brand based on political conflicts, it’s important for the company to own up to why it did it. However, there are a variety of ways to take a subtler political stand in this day and age. Dove, for example, launched an “alternative facts” ad campaign to show its stand against the Trump administration — and it was actually light-hearted and funny.
Glenn Taylor, Senior Editor: A private business can make any statement it wants as long as it doesn’t directly incite an imminent threat — often a debatable point where matters of free speech are concerned. A public business can technically do the same, but it has to answer to plenty of shareholders whose stock may be affected. There will always be risks in taking a stance, but as far as I think, go for it. Political discourse is likely going to affect business results anyway, and I would hope that either way, brand executives evaluate any action before they make the decision. I’m not personally the biggest fan of seeing politics injected into every subject, but I understand that many companies’ decision-makers are bound to feel a specific way based on how the political climate affects them on a personal level. As many people as are upset about what an action or message portrays, there are usually just as many showing their support.
