Not the best year in terms of image for Walmart.
After publicly confronting President Trump because of the increased tariffs, the company faces a threat of boycott by consumers, encouraged by The People’s Union USA.
Equality, equity, price cuts, exposing corruption and making the company responsible for taking on the impact of tariffs is what consumers are putting on the table, maintaining a resilient attitude until action is taken. They intend to fight against this causes from May 20 to May 26.
Walmart collects enemies
After starring a tense cross of accusations with President Trump due to the increase in tariffs imposed by the Republican, it is now the turn of consumers.
According to the company, they have been unable to absorb the cost of the increase in taxes and has therefore had a considerable impact on the pockets of the Americans.
However, consumers disagree with this statements, and they express it through the founder of The People’s Union USA founder, John Schwarz, who argues that they intend to dismantle corrupt practices and will not stop until they are heard. “We’re using the one tool that always makes them listen, money,” said the founder on his social networks.
The boycott includes all companies belonging to the group: Sam’s Club, Walmart Pharmacy, Walmart+, among others.
What weapon are the consumers using?
Money.
Consumers are fed up with big companies still charging millions of dollars, while ordinary citizens continue to receive the same wages, with which they can barely afford products for the daily basis. That’s why they have decided to dry up Walmart’s source of income, by stop buying their products and invest their money in other businesses.
You can read all the posts from John Schwarz here, where he angrily enumerates all the reasons for this boycott.
Who´s winning?
Despite the strength of the boycott, the results do not match. The company has indeed noted a decline in technology, sports and home products income.
According to data from Placer.ai, the flow of customers in stores fell in March, from 5.9% to 4%. However, it experienced growth again in April, for which compensation was paid.
Health and wellness related products also perceived an increase in the number of sales, not to mention over-the-counter products.
Steadiness of the boycott
Despite the intention, arguments and organization of The People’s Union USA, the reality is different.
Consumers have been pushed back by the country’s economic instability.
They fear that the rates will rise and products will become even more expensive, so they have relaxed their position by purchasing certain products in large quantities.
Is this really affecting Walmart?
Not really.
If we focus on the data, despite having experienced periods of lower sales, Walmart closed its first quarter with 7% more profits than in the same period of the previous year, which translates into $5.7 billions in the North American continent. This shows that the effect of the boycott is not being the desired, even going to contradict its purpose.
What´s next?
In spite of these results, stopping is not on the consumers’ agenda. Again encouraged by John Schwarz, they have more companies on their list of targets, such as Trend and McDonalds, which are expected to face a confrontation with The People’s Union USA soon.
It seems that necessity is put before social causes once again, and even if not to their liking, consumers still turn to Walmart for their basic purchases.
We will see how these protests progress and if the future boycotts organized by the organization led by Schwarz achieve their objectives.
Want to know which products are being affected? Read more.
