Some consumers are not spending money for today's economic blackout. Here's what to know.
Many consumers nationwide plan to participate in a 24-hour economic blackout on Friday, which started after midnight, to protest what they call corporate greed, companies that have rolled back their diversity, equity and inclusion efforts and President Donald Trump's efforts to eliminate federal DEI programs since taking office.
During Friday's one-day event, consumers participating in the boycott are encouraged not to spend any money anywhere for one day. If they have to spend, they are encouraged to buy from a local business.
It is difficult to gauge the economic impact of a one-day action with data. But one measure showed Amazon sales were up slightly instead of down.
The 24-hour economic blackout is one of several protests launched by consumer groups, which also includes specific boycotts against Target by national activists upset with the retailer for its retreat from DEI efforts.
What is the Feb. 28 consumer blackout?
The organizer of the boycott, John Schwarz, goes by TheOneCalledJai on Instagram. He previously told Paste BN he started the “bold” idea because the time was right and people are frustrated with what he calls corporate greed and other issues.
The one-day action has since been expanded by The People's Union, the organization Schwarz started. It includes boycotts of various companies and retailers during different time periods including Amazon (March 7-14), Nestle (March 21-28), Walmart (April 7-14) and a second broader one-day economic blackout on April 18, among others. A website, thepeoplesunionusa.com, has more information on the group's efforts.
What other boycotts are planned?
Friday's boycott is one of several planned by different groups. A national boycott of Target started Feb. 1 to coincide with Black History Month. It was launched by civil rights activists in Minneapolis who were upset that Target has rolled back its DEI programs. Another boycott that lasts through the end of the year was outlined on Instagram by comedian and actress Leslie Jones. It encourages consumers to buy directly from Black-owned businesses and outlines planned protests in certain months against Amazon, Target and Walmart.
Members of the the Black faith community also plan a 40-day fast or boycott of Target because of its retreat from DEI initiatives starting March 5. A website, targetfast.org, has been created with more information.
The Latino community has also been active on social media using the hashtag #LatinoFreeze, encouraging supporters to "hold your money'' amid freezes on DEI initiatives, reduced funding for the National Institutes of Health and actions on immigration.
The movement encourages Latino Americans to shop only for essentials and to be thoughtful about where to buy with a focus on supporting "Latino American, Black American and Allied American Businesses that are supportive to this movement."
The Rev. Al Sharpton and the National Action Network also have held a few "buy-cotts" to bring supporters to Costco to spend money in support of the company's board of directors, which voted down an effort to drop DEI initiatives.
The National Action Network also said in a news release that it would lead "a strategic boycott in the next 90 days of two companies that have dropped their DEI commitments amid public pressure." No details have been released.
Target and Amazon did not return a message seeking comment about Friday's economic blackout or other boycotts. A Walmart spokesperson declined to comment.
Do boycotts work?
Boycotts can have mixed results.
Conservative activists have successfully rallied in recent years to force retailers and companies to rein in their DEI efforts by staging boycotts to hurt sales.
Professors have told Paste BN that boycotts can be successful in shaming a company into reversing decisions or taking action, but they don't always work. There needs to be clear demands outlined, they say. But consumers do like being able to take action against something they feel strongly about.
Bjorn Markeson, an economist for Implan, a company that works with companies on economic analysis, said one-day boycotts are not impactful.
"While a one-day economic boycott can be a powerful symbolic gesture, its measurable economic impact is typically minimal. Short-term disruptions in consumer spending often lead to delayed purchases rather than actual losses, as businesses and households adjust their behavior before and after the event," Markeson said. "Additionally, the scale of impact depends on widespread participation, which is difficult to sustain for a single-day action."
Are people participating in the boycott?
The 24-hour-economic blackout has gained traction on various social media sites, with many consumers sharing the plans for the day and saying they were not spending.
On Friday, Amy DeBerg of Sioux Falls, South Dakota said she might go to a local restaurant for lunch or dinner – spending local was encouraged if people needed to go out – but she otherwise was not spending money as part of the blackout.
"I think it's important for those of us who are feeling that nobody's got our back," DeBerg told Paste BN. "Part of it is to help everybody feel and see that something's happening."
She added that "If all it does is help me feel better, I need that shot in the arm, but hopefully it'll help other people feel better about what they can do and about what's going on."
Schwarz, the organizer of the blackout, told Paste BN on Friday that he was blown away by the momentum and attention the blackout had in the preceding days.
"This has really already done so much more than I ever expected," Schwarz said. "I thought a handful of my social media followers would do this, so this is incredible."
Schwarz said supporters sent him videos inside their local Walmarts showing there was less traffic.
"There's going to be people shopping. There's going to be opposition, but I'm not worried about it because it's an incredible moment for us right now," he said. Schwarz said he was turning his attention on the next boycott for the group, which will be of Amazon from March 7 through 14.
Schwarz, who started the People's Union USA by himself and has been recruiting more help, said he was also surprised at the fund-raising efforts by supporters. More than $90,000 had been raised as of Friday afternoon. Schwarz said funds will solely be used for efforts by the organization, including building a website that can allow supporters to communicate on a private social media stream.
What economic impact is the blackout having?
Measuring the economic impact of a one-day boycott with data can be difficult. Spokespeople for Mastercard and Visa, for instance, said the companies do not share one-day sales data. But one measure showed Amazon sales were slightly higher on Friday afternoon.
A survey of more than 1,300 consumers by Numerator, a consumer insights and data company, found that 16% of U.S. consumers said they planned to participate in the Feb. 28 economic blackout, with 65% planning to avoid spending any money at all. The top sellers those surveyed said they planned to avoid were Walmart (74%), Target (69%), Amazon (68%), McDonald's (57%), Starbucks (51%) and Sam's Club (51%).
Forty-seven percent of participants said they made purchases in the days leading up to Feb. 28 to avoid spending on the day of the blackout, while 20% said they were delaying certain purchases until after Feb. 28 and 15% said they will not make certain purchases at all.
Planned participation was the highest among Gen Z shoppers, with 22% saying they would participate in the one-day blackout.
At least one digital retail consultancy company, Momentum Commerce, said its early analysis of Amazon sales on Friday showed more sales instead of less, but that percentage fell as the day progressed.
At noon ET, sales on Amazon U.S. across Momentum Commerce's client base were tracking 6.8% above a typical Friday, Momentum said. By 2 p.m. ET, sales were tracking 3.0% above a typical Friday for Amazon, said Momentum which manages more than $6 billion in annual Amazon U.S. sales on behalf of brands. By 4 p.m. ET, it said sales were up 1.1% from a typical Friday for Amazon.
At an hourly level, peak hours remain a bit slower than a typical Friday, but stronger morning sales meant daily totals were essentially in line with the observed average, Momentum said.
“Despite some continued softness in sales during the afternoon peak hours, daily sales as a whole are almost exactly in line with the average observed across the past eight Fridays," Momentum Commerce CEO John T. Shea told Paste BN. "I think it's fair to say at this point that any boycott activity today isn't driving a substantial, widespread impact on Amazon U.S. sales."
There has also been considerable opposition to the one-day blackout, with some consumers who disagree with the action saying they will make a point to spend money on Friday.
This story has been updated with new information.
Betty Lin-Fisher is a consumer reporter for Paste BN. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.