John Schwarz, a self-proclaimed “mindfulness and meditation facilitator,” stirred up a proposal for a 24-hour nationwide “economic blackout” targeting major retailers at the end of the month. In early February, Schwarz urged individuals to refrain from spending at giant chains like Amazon, Walmart, and fast-food establishments for a day. Instead, he encouraged supporting small businesses and focusing on essential purchases.
Schwarz, known as “TheOneCalledJai” on social media, emphasized in a video to his approximately 250,000 followers on Instagram and TikTok that the current system is designed to take advantage of consumers. He asserted, “On February 28, we are going to remind them who truly holds the power. Let’s switch it off for a day.”
Despite lacking experience in social or political organizing, the 57-year-old Schwarz previously shared motivational messages and tips through videos filmed in his home, yard, and parking lots. Initially not expecting a significant response to his boycott initiative, Schwarz expressed surprise as his message gained momentum online. His video has been widely shared and viewed millions of times, drawing endorsements from celebrities like Stephen King, Bette Midler, and Mark Ruffalo.
The “economic blackout” movement, although somewhat disorganized and vague, has resonated with the public’s frustration towards the American economy, corporations, and politics. While experts question its potential impact on targeted companies or the broader economy, the boycott has struck a chord with many due to its alignment with public discontent.
The online participants cite various reasons for supporting the boycott, including concerns about high costs, corporate influence, political developments, and social justice issues. Responding to the overwhelming support, Schwarz established a group called The People’s Union, aiming to combat corporate dominance, political corruption, and economic inequality. He has raised funds through a GoFundMe page to support future advocacy efforts and targeted boycotts.
In recent weeks, there have been calls for boycotts against specific companies such as Amazon and Walmart. While Walmart declined to comment to CNN, Amazon did not respond to requests for comment. The online response to these boycotts seems to be strongest from the political left, although the individual leading the boycotts, Schwarz, does not adhere to a consistently progressive or conservative ideology along the traditional US political spectrum. Despite not being affiliated with any political party, Schwarz is a supporter of Bernie Sanders and has advocated for various policy changes in recent posts, including the end of federal income tax, term limits in Congress, universal healthcare, and price caps.
Schwarz believes that the boycott has gained traction because people are tired and fed up with the current state of affairs. Alongside the boycott, there has been a notable backlash against Target, particularly regarding its diversity, equity, and inclusion (DEI) efforts. Target, which had been a leading advocate for DEI programs following the murder of George Floyd in its home city of Minneapolis in 2020, faced criticism after scaling back its initiatives, including eliminating hiring goals for minority employees and disbanding a committee focused on racial justice.
This retreat by Target sparked outrage among customers, especially Black consumers, leading to boycott calls and organized protest efforts. Reverend Jamal Bryant of New Birth Missionary Baptist Church in Georgia initiated a 40-day boycott of Target starting on March 5 to coincide with the beginning of Lent, urging participants to support Black-owned businesses during this period.
The blowback from Target’s actions appears to be impacting the company, with foot traffic decreasing significantly compared to competitors like Walmart and Costco. While Walmart and Costco have experienced some fluctuations in foot traffic, Costco, which has maintained its DEI policies, saw an increase in visits during the latest available week. Target, on the other hand, faced a notable drop in foot traffic, suggesting that the controversy surrounding its DEI policies may be affecting consumer behavior. Target did not provide a comment in response to CNN’s request for a statement.
In a recent analysis, Joseph Feldman, an analyst at Telsey Advisory Group, remarked on the retreat observed by companies from Diversity, Equity, and Inclusion (DEI) initiatives. Despite the temporary setback experienced by Target, the efficacy of boycotts in causing lasting financial harm to companies is questioned. Young Hou, a marketing professor at the University of Virginia’s Darden School of Business, highlighted the challenge of sustaining boycotts for extended periods due to consumer fickleness and reluctance to disrupt routines. Furthermore, boycotts can trigger counterreactions, with supporters of a targeted company rallying to increase spending and counteract the boycott’s impact.
The potential difficulty in sustaining a boycott campaign against Target is underscored by the fact that alternative chains consumers may switch to, such as Walmart or Amazon, have also scaled back their DEI programs. A notable example of a successful boycott in recent years was witnessed on the right, where Bud Light’s parent company A-B InBev faced significant sales losses amounting to $1.4 billion following a right-wing backlash to Bud Light’s association with transgender influencer Dylan Mulvaney in 2023.
Boycotts and protests, while often short-lived, can compel companies to enact changes. An illustration of this is the protest by Stanford University students and faculty against Nike CEO Phil Knight’s visit in 1997 due to Nike’s labor practices. Notably, the Bud Light boycott succeeded due to the ease with which customers could substitute Bud Light with alternatives like Coors Light or Miller Lite, minimizing sacrifice.
While boycotts and protests may not cripple powerful companies, they can exert pressure, raise awareness, and impact public perception. Historical instances, such as protests over Nike’s sweatshop labor practices in the 1990s and 2000s leading to policy changes, underscore the potential influence of consumer activism. Similarly, after the Parkland school shooting in 2018, consumer and activist pressure prompted companies like Delta, Avis, and MetLife to sever ties with the National Rifle Association, showcasing the impact of targeted efforts.
In analyzing the effectiveness of boycotts, the specificity of the cause emerges as a crucial factor. While boycotts may not debilitate major corporations, they can prompt defensive responses. Ultimately, boycotts serve as a tool to hold companies accountable, elevate social issues, and potentially drive meaningful change. For more news and newsletters from CNN, consider creating an account on CNN.com.
