What: The People's Union USA's planned February 28 economic blackout targeting major retailers could inadvertently harm small businesses while aiming to protest corporate practices and rising prices.

Why it is important: With recent data showing inflation at 3% and prices surging 20.7% over four years against 19.3% wage growth, this consumer activism reflects broader tensions between corporate profits and community economic health, particularly as small businesses serve as vital community pillars.

The People's Union USA has called for a 24-hour economic blackout on February 28, targeting major retailers and chains in protest of corporate practices and rising prices. While aimed at large corporations like Amazon and Walmart, small business owners warn of potential collateral damage to independent retailers. Ann Cantrell of Annie's Blue Ribbon Store emphasises how local shops serve as community pillars, citing examples of collective community support such as raising USD 15,000 for wildfire victims. The initiative comes amid concerning economic indicators, with January's CPI rising 0.5% and inflation remaining at 3%. The organisers plan to follow the one-day boycott with targeted week-long actions against specific companies, particularly those that have reduced their DEI initiatives. However, experts note that consumer boycotts typically fail unless companies' actions are particularly egregious.

IADS Notes: The economic blackout initiative emerges amid significant shifts in consumer behavior and retail dynamics. January 2025 data shows a growing "buy less" movement, while recent surveys indicate 73% of consumers feeling overwhelmed by online shopping choices. This activism coincides with broader economic pressures, as European consumers demonstrate increased caution in spending, with 73% experiencing higher prices for goods and services. The timing is particularly significant as retailers already face challenges from changing consumer preferences, with data showing 67% of consumers seeking simplified lifestyles. These developments suggest that while the boycott targets corporate practices, it reflects deeper changes in consumer attitudes toward consumption and corporate responsibility.

How the economic blackout could backfire on Main Street