By Jane Genova

“Corporate America Is Sitting Out the Trump-Biden Rematch.” That was the May 10, 2024, headline in The Wall Street Journal. After several years of being vocal about political issues, corporations have decided politics and business do not mix. Vivid is the memory of how taking a political stance damaged the branding of Bud Light and Disney. 

It could be a different play-out for smaller retailers. They can gain a distinct edge by getting in there on the political conversation this election year. That includes not only positive impacts on customers – politics is personal. It also extends to retailers’ relationships with employees. According to Zippia, almost 80 percent of employees will be preoccupied with political issues. Profits could increase and employee turnover decrease. In addition, retailers can differentiate themselves from both direct competitors and “the big guys.” 

The risk, of course, is that mixing politics and business can be explosive. However, money management firm Hartford Funds sees not opening up to the political conversation as the bigger risk. It can signal to constituencies that the business is distancing itself from the most important issues of the day. After all, unlike large corporations including Big Boxes and chains, smaller retailers are directly and deeply embedded in their communities. They have to be where the community is. This article looks at how retailers can navigate the landmines associated with politics.

Circling back to the general store 

People love to talk. Several years ago, retailers discovered that encouraging folks to talk in the store, with clerks and with each other, could boost the financial performance as well as loyalty. Resurrected again among smart retailers has been the general store. On LinkedIn, financial expert James Chaffin documented the magic. Large retailers cannot facilitate that kind of informal chatter. 

Therefore, the setting could already be in place for the election year talk of politics. Pew Research found that people prefer to have political conversations in person versus digitally or via the phone. 

The stakes

A critical fundamental in managing the politics-business mix is that customers and workers size up the retailer as authentic in its participation. That is, they must perceive that the owners and managers are sincere and public-spirited in wanting the political points of view to be heard. 

Actually, it is unlikely there is any ambiguity about that. A lot is riding on the election for retailers, too. 

The Retail Industry Leaders Association documents that the 2024 voting results will impact 52 million jobs associated with retail. The business issues range from supply chains to taxes/tariffs. 

Preparation check list

As with all matters related to business, managing the political conversation involves strategic planning. Following are the top six items of concern.

Researching political demographics of both customers and employees. The target market may be conservative but the community more politically diverse. To keep developing new business, the retailer’s stance might veer toward neutral while simultaneously creating an environment for candor.

Figuring out the retailers’ professional role. That will shape all positioning and packaging of the political give-and-take. No matter how heated the talk gets, the odds are retailers can neutralize it by falling back on the need to protect their specific business interests. Often that can be done with storytelling. For example, a retailer can point out, “I have been a ‘victim’ of thousands of dollars of theft in the past 18 months. That is why I advocate for stricter laws.”

Linking with the common good. Everything from the messaging to the introduction of political products, services and special events depend on support of the community’s core values.

Determining social media strategy. The retailer can be generic, as in messaging about the importance of voting. Another approach would be to leverage social sites as platforms for community political opinion. That requires content monitoring. The mood on social media can change on a dime. There could also be passionate push-back.

Learning basics of crisis communications. At the very least, misinformation about what was said in the store can create trouble. There can be a mob attack on social. More serious could be threatened litigation about alleged defamation of a political candidate. 

A crisis-management model provided by Resource Media includes appointing a spokesperson; understanding the key constituencies; gathering and releasing the facts as soon as possible, promising to release more as they become available; staying on message; and controlling the flow of information. 

Scheduling time to remain up to date on political news. Nothing undermines credibility like being uninformed. 

Eight best practices

The good news is that since the topic of politics is inherently controversial, many best practices have emerged to manage political discourse in all mediums. Following are eight.

Ensuring the fit with the brand mission. According to Success, a necessary guardrail is that the openness to political debate is connected with what the retailer is all about. Otherwise, there will be no trust that the store is a safe place to talk or that the retailer is sincere and not opportunistic.

Being there. So much of what is effective circles back to the Dale Carnegie school of human relations. The key two principles are to take a real interest in others and to manifest that by listening. Most humans yearn to be understood. The process proceeds through asking brief non-loaded questions. Usually, retailers will not have to say much. 

Knowing basics of free speech. The limits include defamation, incitement to riot and threats. 

Establishing informal and formal monitoring systems. It is usually palpable when the emotional temperature is rising too quickly. Among the ways to lower it is to change the subject. Announced can be a 48-hour flash sale for a popular product.

Becoming a public service. As a special event or on a social media platform, political figures can provide their pitch to constituencies. Fundraising is a must-do. Retailers can set up mechanisms for non-partisan donations. 

Training employees. It is usually standard to upskill workers on how to defuse escalating tensions.

Choosing the right medium. Way back in 1964, Marshall McLuhan explained in “Understanding Media” that the medium that is used will in itself shape the message. Retailers, for instance, wanting to advocate a review of laws about shoplifting might choose the long-form medium of a blog, not in-person talk with customers or blurbs on the website. 

Adopting rapid course correction. If there are negative impacts such as a falloff in traffic or of actual sales, it is necessary to analyze the variables, try out fast fixes and provide public statements about the revisions. From-the-heart apologies can move the situation out of the past.

Beyond the transactional

Customers and workers probably will notice. They can bear witness to the retailer’s taking on the messiness of becoming part of politics. There can be a transformation of the retailers’ identity to a kind of public service. The transactional parts drop away in the shopping experience. 

 

Jane Genova is a business writer and career coach. Her articles have been published in AOL, Motley Fool, Yahoo Finance, Payment Week, Business.com, Daily Business News and O’Dwyer’s Public Relations. She co-authored the book, “The First Critical Years of Your Professional Life.”