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Costco’s lessons for politicians and voters

Commentary & Opinion
WAMC

What you buy these days seems increasingly to be a reflection of your politics. At least, that’s what we learn in a report from Columbia University Business School research, which cites the polarization that has followed Donald Trump’s first election. In a 2023 paper, Columbia marketing experts reported that 80 percent of consumers believe that brands have political affiliation, and six in 10 Americans say they would boycott (or “buycott”) a brand based on their own political identity.

We’ve seen this, for example, with Bud Light beer – which was hammered with a boycott a couple of years ago after it launched a social media campaign featuring a prominent transgender influencer. MAGA types attacked Anheuser Busch, which was vulnerable, the experts say, because competitors could easily replace Bud Light. I mean, have you had a Bud Light lately? It’s arguably the least memorable beer ever brewed. So consumers had no reason to be loyal, and the brewer’s swift retreat only put wind in the sails of the boycotters while angering the left.

That boycott drew support from right-wing politicians, but until now, government itself has rarely stepped into consumer campaigns. Republican politicians, after all, have traditionally voiced respect for free market economics. But now the whole party has clammed up at Donald Trump’s blatant interference into commerce.

Notably, as Trump demanded the end of diversity, equity and inclusion programs, many of even the nation’s biggest and most successful businesses quickly caved in – including Amazon, Meta, Pepsico, McDonald’s, Target and WalMart. Some consumers pushed back: After Target announced changes to its DEI policies, there was a noticeable drop in foot traffic.

But among the big retailers that held firm was Costco, which boasts that a third of Americans are its customers. Trump was ticked off, a right-wing advocacy group brought pressure on investors. But more than 98 percent of Costco shareholders voted to keep its DEI policies in place. And as Trump’s tariffs make it hard for retailers to hold prices in check, Costco is suing the government for payment to make up for the cost of those tariffs.

This is on my mind because until a couple of weeks ago, I was in that rare category of Americans who had never been inside a Costco. We don’t have one in the Capital Region, you know – though our first Costco Warehouse, as the stores are called, is being built now near Crossgates Mall in Guilderland. So my
daughter, who lives in Washington, DC, took me to visit a Costco near her home this month.

Interestingly, there has been relatively little pushback among pro-Trump Costco customers. Maybe that’s because, unlike Bud Light, Costco is a brand customers would have a hard time replacing. And maybe it’s because Costco has established a certain integrity that its customers recognize and value.

That is, it’s not open to manipulation by politicians. It’s sticking with its customers – including those who like the buck-fifty hot dog-and-soda offer, the cheap bulk packages of paper towels, and the whole rotisserie chicken that’s offered every day for $4.99.

Some of those are “loss leaders” – you know, Costco loses money on every chicken and every hot dog it sells. But the deals speak volumes about the retailer’s determination to be a value in its customers’ lives. And those customers are loyal.

So here’s some advice for those who are trying to find their way in a Trump-dominated America. There’s evidence here of a lesson for politicians and voters in the merit of holding true to one’s values. Consider the words of Ralph Waldo Emerson, whose advocacy for a life centered on individualism would surely conflict with today’s consumerism. Emerson said: “To be yourself in a world that is constantly trying to make you something else is the greatest accomplishment.”

Just as customers are eager for a retailer they trust to deliver products they want, American voters crave candidates whose stances speak to their needs and, importantly, whose values they can embrace. Standing firm, then, may emerge as a defining difference among candidates as they seek support from voters who are weary of cynical manipulation.

So as midterm election campaigns get underway this year, those in the political arena could learn lessons from the unique retailer with the buck-fifty hotdogs and piles of paper products. As Shakespeare wrote, “To thine own self be true.” Not often found in politics, but mighty attractive to consumers – and to voters.

The views expressed by commentators are solely those of the authors. They do not necessarily reflect the views of this station or its management.

Rex Smith, the co-host of The Media Project on WAMC, is the former editor of the Times Union of Albany and The Record in Troy. His weekly digital report, The Upstate American, is published by Substack."
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