Wal-Mart holiday faux pas provides important commerce lessons
Released on = November 11, 2006, 6:14 pm
Press Release Author = Multicultural Business Council
Industry = Small Business
Press Release Summary = In a major policy change, Wal-Mart reversed last year\'s decision to eliminate the word "Christmas" from their stores. News of their 2005 policy to have all store signage say, "Happy Holidays" and forbidding store associates from saying, "Merry Christmas" caused a backlash in the form of boycotts from Christian shoppers. Learning from their mistake, Wal-Mart has reversed this policy by allowing religion-specific holiday greetings at their stores for the holiday season of 2006. This story reveals 4 key lessons for all business owners.
Press Release Body = Wal-Mart reversed last year\'s decision to eliminate the word "Christmas" from their stores. News of their 2005 policy to have employees and signage say, "Happy Holidays" instead of "Merry Christmas" caused boycotts from Christian shoppers. Learning from their mistake, Wal-Mart changed this policy by allowing religion-specific holiday greetings at their stores for the holiday season of 2006.
Media reports immediately declared that Wal-Mart had shifted their focus to the Christmas holiday. This was not, however, what Wal-Mart has done. To the contrary Wal-Mart has expanded their holiday greeting program to include people of all religions wherever possible.
Wal-Mart has long shown tremendous expertise dealing with controversial consumer issues. A policy reversal is one of the most delicate of all controversial issues with which a business must deal. When Kmart pulled guns from US stores they made an announcement condemning the guns. In Alaska, where the right to bear arms is exercised by an overwhelming percentage of residents, several groups decided to boycott Kmart. Management restocked guns in the Alaskan stores, however never dealt with the way they had insulted the Alaskan populous. Kmart never regained consumer support, leaving Alaska.
There are 4 lessons for us: 1. Do not let the media define your business decisions. When the media reported that Wal-Mart returned "Merry Christmas," Wal-Mart dispatched spokespeople to major broadcast outlets. They clarified the message that Wal-Mart by spelling out the new policy was to greet customers with the appropriate greeting for their religion -- Muslim customers will be wished \"Blessed Eid!\" Similar greetings will be used for Hanukkah and Kwanzaa. 2. Listen to your customers. Although most business owners listen to consumer groups, Wal-Mart listens to cash registers. When consumer groups began complaining about the Happy Holidays policy they held judgment until the cash registers told them they had made a mistake. Unfortunately too late for 2005\'s season. 3. Keep your reaction proportionate. Wal-Mart was also wise knowing that non-Christians make up an important part of their customer base. Therefore they needed a policy that addressed as many demographics as possible within their customer base. 4. Communicate with employees. Knowing that this policy reversal would get tremendous attention, Wal-Mart took the time to ensure associates were well aware of the new policy. This is not an easy task for an employer with more than one million employees, but Wal-Mart recognized the need to make this important investment.
According to Multicultural Business Council (MBC) spokesperson Rick Weaver, "the number of choices consumers have in satisfying their needs dictates that the savvy retailer must address the individual demographics of their customers. No longer can businesses whitewash its product assortment, marketing plan, or visual displays to a generic consumer if they want to be successful."
MBC works with companies and organizations to address the cultures of their customer and support bases. It has been their experience that shifting the focus from the traditional broad-paintbrush generic approach to an highly targeted programs will net excellent results in both sales and profits.
Web Site = http://www.mbcglobal.org
Contact Details = Rick Weaver||1720 Northumberland Drive, Suite 202||Rochester Hills , 48309||$$country||||248-802-6138||rick@mbcglobal.org||http://www.mbcglobal.org