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Like so many of us, I’m disgusted at the unconscionable events that transpired at a WalMart located in New York this past weekend. But I’ll be even more disheartened if marketers don’t rally for retailers to adopt more responsible practices to avoid any further black marks to the industry.
What happened?
WalMart promoted “Black Friday” sales. A crowd at a New York-based WalMart which started waiting as early as 9pm Thursday swelled to as many as 2,000 people by 5am Friday--and then proceeded to turn into a mob, remove the store's front doors from the hinges, and trample a male employee and a pregnant female in their wake.
The man lost his life and, as now reported, another woman who was knocked down suffered a miscarriage. Shoppers got their stuff and the WalMart re-opened a few hours later.
What’s a “scarcity” strategy... and how do retailers leverage it?
In a nutshell, it’s a common practice for retailers to stock a limited ("scarce") supply of the season’s “hottest” items. These items, be they dolls you tickle or gaming consoles, usually have lower profit margins because of basic supply/demand models. Thus, those people that get the items make their kids very happy.
And those people that do not get the must-have items? They buy other toys and gadgets (which usually have higher profit margins for retailers) to compensate and still make their kids very happy because, in many cases, the kids also get the “hot” items in January when, surprise!, stock magically becomes available again. The kicker? The kids that don't get the hot item on Christmas morning usually make out better due to gifts on Christmas and right after when the hot item becomes available again (never underestimate the buying power of guilt).
In any case, scarcity is a very successful sales strategy. But if retailers are going to wield it, and other big sales tactics, they need to do so responsibly. I'm not asking for retailers to forego profits, but to protect their employees and shoppers.
According to the New York Times article, “Detective Lt. Michael Fleming, who is in charge of the investigation for the Nassau police, said the store lacked adequate security. He called the scene ‘utter chaos’ and said the ‘crowd was out of control.’ As for those who had run over the victim, criminal charges were possible, the lieutenant said. ‘I’ve heard other people call this an accident, but it is not,’ he said. ‘Certainly it was a foreseeable act.’”
Here's footage of another Walmart frenzy fighting over an XBox, as I understand, this is not the mob/location in question and is not graphic (I would never show that video and hope it does not make its way to the Web).
How could WalMart have avoided this?
Pretty darn simply, I’m saddened to say.
They could have (1) had a ticketing system in place for any must-have, limited-stock items so that those who had a ticket were assured purchase of the toys while others had to shop elsewhere and (2) retained adequate levels of security for the busiest shopping day of the year. No rocket science here; just responsible marketing practices.
Worry not retailers; a ticketing system would have still assured that WalMart turned a healthy profit as the people who could not buy the coveted items would still have turned to other items (whereas it’s likely WalMart would have made a larger profit). In fact, other big-box retailers use ticketing systems and adequate security levels to assure they still get crowds sans the chaos, this is nothing new.
So, I’m asking my fellow marketers for your opinions on three fronts:
- Is WalMart legally culpable--be it criminal or civil action--for the deaths of the male employee and loss of the woman’s unborn baby?
- Should regulations, such as ticketing and ample security, be enacted to ensure better practices (and no fatalities) when retailers are leveraging scarcity strategies and big sales... given that this chaos was reportedly "foreseeable"?
- Can we honestly still promote that “Any publicity is good publicity?”
(I vote yes on 1 and 2 and no on 3—then again, I never understood, nor bought into, this maxim.)
I should also say that I do not in any way excuse the people in the mob for their deplorable actions. Not one bit. But what’s difficult to understand is who all in the crowd was responsible. As a colleague asked me on Twitter when we were discussing it, “Whom do you prosecute, the people in the front of the crowd…or the people at the back pushing them forward?”
Folks, I do not have an answer for that one; it’s a police matter. But this I know for certain: If there is no bait, there is no feeding frenzy.
Whatever your personal feelings on WalMart, they’re important to the U.S. economy—as well as to other economies, like China, being they retail many of their manufactured goods. They employ many people, and they help a lot of people afford many items. I’m sure that WalMart executives feel terrible over this tragedy. But they shouldn’t get a pass and they should set far better examples going forward.
Otherwise that adage about history repeating itself will do just that.
PS: For some perspectives on this from bloggers, please go here and here. Also, input from the retail workers' union is here.
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Comments
Wow. I am absolutely appalled that Wal-Mart does not have a memorial to the person that was killed inside their store...seems like the best way to avoid a PR nightmare...yet, they have done nothing. Although, given Walmart's perceived arrogance and array of missteps...I guess the PR team was one of the first casualties in this downturn.
Posted by: Stuart Foster | 12.01.08
Aside from the fact that it would depress the frenzy when the doors opened, I can't imagine why they don't have a ticket system.
I used to sleep out all the time for concert tickets back in the 80s and the stores selling the tickets were distributing tickets back then, and then letting people in 10 at a time.
I think the customers and the retailers share blame here.
Posted by: Shawn Collins | 12.01.08
Completely agree with you, CK (as you know from our exchanges).
This was a sickening reminder that humanity has happily replaced caring and respect with greed and selfishness.
For sure Wal-Mart has to come under judicial action - there is no way that they can even pretend their security and crowd control measures were adequate.
Then again, a company that values its employees so little to start with probably cares even less about the law - as long as their fatcat pockets are full...
Posted by: Danny Brown | 12.01.08
CNN just reported (around 10am) that the killed worker was actually working to protect a pregnant woman when he was trampled. Being it's such a heroic act, I thought you folks would want to know of it.
As is still the case, none of this had to happen.
Posted by: CK | 12.01.08
my vote is the same as yours.
Personally I hate a lot of what happens lately. This economic situation is generated by greediness and this activity of the black friday is totally aligned with this greediness.
Posted by: gianandrea facchini | 12.01.08
This situation leaves me perplexed. The store does create a mob behavior but why do some mobs over-react and others don't? This was one incident (there may have been 1-2 others?) in a nationwide shopping frenzy. How can a retailer or community know where the "tipping point" of a mob will hit?
Sorting out the legalities of this situation is even more difficult. Laws are likely not the source of "justice" in this case.
The two largely missing items is any empathy from the community or WalMart. My guess is that they are tempering legal risk but that is a flimsy curtain to hide behind.
The community in this location has many voices; city government, churches, local businesses, etc. Has there been any discussion or outreach? Is this a high-incident location? What does the community believe are appropriate standards of behavior?
It is also amazing that WM hasn't reached out to the impacted families. The last statement on their site is from Friday, and it really doesn't address the issue.
Public discussion of the store and the community will bring more to bear on this issue than legal enforcement.
Posted by: NWGuy | 12.01.08
What a tragic story! It is a story of desperation and greed, both of Walmart and the people in the crowd. So sad that people are driven to act like this and that stores are driven to these types of sales.
Posted by: FreedomFountain | 12.01.08
Marketing's job is to create demand. It crossed way over the line many Black Friday's ago - this is not the first time a "trampling" has occurred on a Black Friday or other promotion of scarce product.
But everything is OK in marketing until someone gets killed. Then everyone becomes a sage - they "told ya so" and they know exactly where to point the finger.
To place blame on one corporation or one store location is beyond the pale.
And now we get the discipline we couldn't create by and for ourselves - lawsuits by the dozens and new Black Friday legislation that will make CMOs ever more tentative.
Chief Mob Officer, or Chief Marketing Officer?
Posted by: Kevin Horne | 12.01.08
1) Obviously Walmart is somewhat responsible, but not primarily. It was the shoppers who actually trampled the man. And I take issue with not placing blame on them just because you can't prosecute the whole bunch. Prosecuting Walmart isn't going to solve anything, either. The man and baby are dead.
With that said, it's clearly a sad commentary on our culture as a whole, of which both these shoppers and Walmart are a part of. Yes, Walmart needs to know that these situations are "relatively" common on Black Friday and prepare accordingly, but at the end of the day this is just a sad case of humanity.
2) Ticketing is a good idea, but not mandatory. I mean, it's a line. Thousands of cafeterias find a way to make them work every day.
3) Never really understood that statement anyway, so no, it's not all good.
Posted by: Brett Duncan | 12.01.08
(corrected link)
Posted by: Kevin Horne | 12.01.08
I vote with you CK. As a long-time concert goer, who has both been crushed and done some crushing, security and controlled lines held within physical boundaries are a must. Since being employed at concerts the risks of being hurt entering concert seating shows(non-reserved seats) have mostly eliminated the risks. Surely, someone at Wal-Mart could have figured this out without limiting first-come, first-served. On the other hand, what the heck is wrong with shoppers acting in such ways?
Posted by: Lewis Green | 12.01.08
@Kevin: Marketing's job is to create value for company and customer. Indeed, a BIG part of that is creating demand--we also want to provide value across quality, pricing, service, experience and, yes, safety (though one could argue that safety is nestled under experience). In this case, I am pointing the finger at Walmart because other big boxes like BestBuy didn't report mobs/fatalities and injuries--and because this all could have been prevented by some simple security and/or ticketing measures.
Walmart is a king among retailers and has clocked a good bit of experience with mobs (just check out YouTube for various videos over the years) and so they know that when a crowd swells to 2,000 they’re putting their employees & customers (that demand we work so hard at creating) at risk.
While it may not technically be 'marketing's' job to ensure the welfare of employees and customers, it's certainly management's. Why should a CMO be tentative when all they need to do is sync with management that, indeed, security measures will be taken on the "biggest" shopping day of the year? There will always be tragedies, I'm sad to say--look at what happened with the shooting at Toys R' Us--but with the size of this crowd, this was foreseeable and preventable.
@Brett: I agree that the mob shares the blame and I don't excuse them. News reports cite that police are currently checking the tapes to determine who should be charged (I wonder how difficult it is to detect whom all is responsible, besides the folks that took the doors off the hinges). Yep, cafeterias make lines work every day--so why couldn't Walmart have made better lines and implemented better security since they saw the crowd swelling through the night? It's irresponsible and confounds me.
And yes, it's a very, very sad commentary on society as a whole--I just keep shaking my head at the story.
Posted by: CK | 12.01.08
@NWGuy: I, too, have been thinking about why some mob and others don't. For instance, when the iPhone went on sale...with such a HUGE push to the launch...people were waiting outside for the doors to open--but there were no injuries, the crowds I talked to were just “stoked”. I'm not sure if WM has not reached out to the families (you're right, they're probably very surrounded by lawyers right now), or maybe they have and it's confidential.
The only outreach I've seen is the news and that's mainly been police feedback as I've only seen a statement from Walmart--perhaps they will talk to the community in the coming days, it's a really good point. And I'm interested in what the direct community is thinking/feeling.
@Stuart: A memorial is a great idea; I'm not sure if they are doing that...though I've not heard/seen that. (I live in NY but not near the Walmart location)
@Danny: Agreed; thanks for talking this with me over at Twitter and for your good post on it.
@Shawn: I, too, have waited for concerts and events. In some cases it was general admission (so this is closer to the WM format) and security was everywhere to make sure everyone behaved. It was like a zero-tolerance rule; if you acted up, you're out!
@Gianandrea and @Freedom Fountain: Yes, it's tragically sad--both the incident and the deplorable message it sends.
@Lewis: Thanks. I can’t even begin to fathom what that mob was thinking…some psychologists say that “groupthink” is to blame. You and I have seen people raise their voices very loud online—but to remove doors and trample people? Unthinkable.
Posted by: CK | 12.01.08
Here's the thing that gets me. You're part of this mob that tramples someone to death. Did any one of them actually say, "Maybe the deal's not worth it" and leave? Or did all the people who took part in this wind up walking out with a few hundred bucks off a TV? That's just frightening.
Posted by: David Berkowitz | 12.02.08
Just a little background from a native New Yorker: Green Acres, the mall where the incident occurred, while in middle-income Valley Stream is adjacent to a number of low-income, high-crime neighborhoods. It's had a bad rep for many, many years.
This is something Wal-Mart should probably have been aware of and why a ticket system makes so much more sense. It also, we should note, makes customers feel better-- they're interacting with Wal-Mart from the minute they show up. Otherwise, it seems as if the store is ignoring them until the doors open.
I mean if that was my store, I'd have been out there with hot coffee and donuts for the people waiting-- a small thank-you for being so loyal.
Legal culpability is a tricker question-- we don't know all the facts yet, so we can't condemn them. (e.g. it's possible that the local police said they were sending a dozen officers over, but never did. We just don't know yet.)
Posted by: Alan Wolk | 12.02.08
@Alan: "I mean if that was my store, I'd have been out there with hot coffee and donuts for the people waiting-- a small thank-you for being so loyal."
Yup. I was talking this with my colleague yesterday...if it were my store? I'd offer cocoa and doughnuts (like CNN did on election night in Times Square) as well as offer the manufacturers whose goods are featured in the store, the opportunity to give something out (think cheap trinkets with branded logos). Why not leverage a captive crowd? Then again, they’d have to know that a crowd would be waiting. Thanks for explaining that the area of NY is high-crime.
@David: I keep saying this but I can’t even fathom that they kept going to shop. There are no words.
Posted by: CK | 12.02.08
ck:
To your questions:
1. Is Walmart on the hook? Yes. If someone slipped on a wet floor, they'd be liable. Why not this.
2. Should they (and any retailer) have rules and policies that stop this kind of behavior? Yes.
3. Is any publicity good? Ask Michael Jackson.
Other imponderables here:
1. Stampeding a Walmart? What happened to 'stack 'em high and let 'em fly'? Walmart doesn't do a lot of discounting beyond EDLP.
2. There's no Cabbage Patch Kid this year. Sure, consoles like Wii are selling, but there' also heavily distributed.
3. Scarcity cuts two ways: scarcity of goods and scarcity of dollars in the pocket. Walmart will do well in this economy - Target, not as well.
Posted by: Stephen Denny | 12.02.08
We just wrote a post on this as well, and it is appalling that Wal-Mart's PR team has left much to be desired...however, the consumers are to blame as well.
Posted by: Liz | 12.02.08
@Liz: I'll check out your blog post; thanks. The consumers shouldn't get a free pass, they absolutely carry blame. It's just that with the consumers it's a police matter--so we're in "wait mode" as to whom will be prosecuted and on what charges while the police examine the tapes and identify, I guess, whom all is to blame (it could be many on various charges spanning assault, vandalism, manslaughter, etc.).
But from a marketing angle, with Walmart, being it's the business and needs to have/maintain the interests of its customers and employees, I'm just astounded at the negligence.
@Stephen: Yep, scarcity is a smart strategy (nothin' against it, just asking retailers to prepare for it, as you agree). And I've no doubt WM will do well this holiday. Hope they do, they're mighty important to this economy and we really *knock on wood* need some stability to keep money flowing and jobs steady. Thanks for bringing Michael Jackson into it ;-)
Posted by: CK | 12.02.08
CK, you found the key to this horrible incident: scarcity mentality. What does Walmart think is going to happen when you deliberately lure and attract people that have a scarcity mentality? Courtesy?
Every year there are stories in the media about incidents and fights over merchandise on Black Friday. The media is actually out looking for it. So for Walmart to be shocked that this happened is indeed negligent. And to act like nothing happened on their website is shameful.
Posted by: Jay Ehret | 12.04.08
I've held off commenting on this because it seems everyone was jumping on this story and looking to assign blame -- blame it on the marketing (absurd), blame it on the store. Wrong -- Blame it on the people.
Alan Wolk got it right -- the store is near a poor neighborhood where, unfortunately, rude behavior is not uncommon.
Ticketing might have worked. Giving free coffee and donuts would have only caused another stampede. In hindsight (where we're all smarter) the store manager, seeing an unruly crowd, should have asked for police help before opening the doors.
Posted by: David Reich | 12.05.08
@David: But he didn't open the doors sans the police--the doors were removed from the hinges by the mob/crowd before the store was even supposed to open. At that point it was way too late.
The crowd swelled to a reported 2,000 folks from the previous night--might the manager might have thought at some point that they needed more security (AND police) during that time? Especially since Alan and you are mindful of how uncommon these unruly crowds are in that area (I don't know of this area, so I'm just learning that from Alan and you).
Yes, the crowd carries blame--and we're waiting on rulings from the police as to whom will get charged (and with what charges). But if you're promoting big sales...on the reportedly biggest shopping day of the year...with crowds swelling to 2,000...in an area that is "known" for poor behavior...why not protect customers and employees with better security? To me that's just simply being responsible--so WalMart has been negligent and most definitely shares the blame.
PS: When I worked in retail marketing back in the 90s in an urban area, we always doubled-up on security on big shopping days. It was part of the process--and it was known that all big-box retailers and malls had these protocols. And for very good reason. While we never had a fatality (thank goodness), we once saw a fight break out. I'll never forget how fast security defused the situation so that it didn't reach a fever pitch and only the two people fighting were harmed. I also remember well the Head Security Officer looking at me and saying "You really only understand how valuable security is when we're either here during a situation or worse... when we're NOT here during a situation." We went through some budget cuts during that time, and it affected most every program but we never cut security. And, again, it was SOP to have more security during big sales and big shopping days. WalMart knows this, they're the king of big boxes, after all.
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