...
By Ashley Parks
Associate Editor
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
A planned one-day economic blackout on February 28 aimed at protesting corporate practices and policy decisions did not appear to significantly impact overall consumer spending, according to early data. While many consumers pledged not to make purchases for 24 hours, Amazon sales remained slightly above average.
Why It Matters
The economic blackout was organized as a grassroots effort to demonstrate consumer power by temporarily halting purchases at major retailers. Participants sought to push back against corporate rollbacks of diversity, equity and inclusion (DEI) initiatives and broader concerns about corporate influence in politics.
Read More on News
While the event generated significant online discussion and participation from some consumer groups, the data suggests its impact on major corporations was muted.
...
What to Know
The blackout was spearheaded by The People's Union USA, an activist group that encouraged individuals to refrain from spending money for one day to send a message to large businesses. Social media played a central role in mobilizing participants, with organizers claiming widespread support across different demographics.
However, the exact participation rate remains difficult to quantify, and economic analysts caution that such events often lead to delayed spending rather than actual financial losses for corporations.
According to early data from Momentum Commerce provided to Newsweek, Amazon sales in the U.S. were actually up 3 percent compared to the average Friday. While peak-hour sales were slightly lower than usual, stronger sales earlier in the day offset those declines.
Momentum's coverage specifically followed Amazon sales, as the company is the largest online retailer in the U.S. and the world, according to data from Digital Commerce.
John T. Shea, founder and CEO of Momentum Commerce, shared insight on some of Amazon's early sales trends with Newsweek on Friday.
"Overall we're not seeing a major downturn in sales on Amazon US today, although the peak hours are a bit softer from the average Friday," Shea said.
By the end of the 24-hour period, according to data from Momentum Commerce, sales at Amazon ended up at 1 percent higher than the average across the last eight Fridays.
What People Are Saying
Dr. Vilma Todri, associate professor of information systems at Goizueta Business School, Emory University, told Newsweek: "Social media has completely transformed how boycotts gain traction. Social media can create a massive surge in attention for a boycott in a short time frame, generating media coverage. However, research has shown that there can also be a disconnect between online activity and actual purchasing behavior as social media metrics have proved to be poor predictors of real consumer demand. This could be because viral outrage on social media might come from individuals who weren't customers to begin with or because digital participation in the boycott can sometimes reduce the motivation to take more meaningful action like changing purchasing habits."
Wes Longhofer, executive director, Business and Society Institute at the Goizueta Business School, Emory University, told Newsweek: "Research has shown that it takes a lot for a boycott to affect company sales, especially when so much consumption is online and there is less pressure to change shopping habits (not to mention fewer options). But the longer the boycott lasts and the more media attention it gets, then the more likely it is to affect the financial performance of the firm indirectly. But we should also ask about what success means for those boycotting. Boycotts can tarnish the reputation of a company, reveal broader consumer dissatisfaction and help galvanize a larger social movement."
John Schwarz, founder of The People's Union, previously told Newsweek: "The People's Union USA is not just about one day, it's about creating a long term strategic action. February 28th is the start, but we are building a sustained movement that continues to grow with each video posted.
This isn't a one time protest, it really is the beginning of a shift in how the people can demonstrate their power intelligently to the corporations and government."
What's Next
Although the one-day blackout's measurable impact appears limited, organizers are planning additional actions. The People's Union USA has announced targeted week-long boycotts of Amazon (March 7-14), Nestlé (March 21-28) and Walmart (April 7-13), among others. A second and third one-day blackout is also scheduled for March 28 and April 18.
The broader effectiveness of these efforts remains uncertain. While public support for corporate accountability is strong in some circles, economists caution that unless sustained and coordinated efforts target specific businesses, their long-term impact may be minimal.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines