Retailers, brands face a test: Oppose ICE or stay quiet while thousands protest

The letter did not name Trump or any other political leader, but called for “an immediate deescalations of tensions and for state, local and federal officials to work together to find real solutions.” It also said business representatives have been working with federal, state and local officials and communicating with the governor, White House, vice president and local mayors.

Up until a few days ago, Target and other major employers in Minnesota had refrained from speaking out on ICE’s presence in the state, which started surging in December, and on confrontations by ICE officers in retailer parking lots. But pressure has been building behind the scenes. On Friday, the Minnesota Star Tribune reported that hundreds of Target workers wrote a letter to CEO Brian Cornell and other leaders condemning its “continued inaction” as ICE kidnapped and assaulted two employees.

This is just one example showing the tightrope retail leaders are finding themselves having to walk on in responding to the bloodshed happening in their hometown, with many of them avoiding language condemning the federal administration or local officials directly.

“Businesses are having to weigh what it would mean to make such a public stance, how it might attract the ire of the Trump administration and how it could alienate some of their customer base,” Ryan Allen, associate dean of research at the University of Minnesota’s Humphrey School of Public Affairs, told Modern Retail. “I imagine those are the kinds of discussions that are underway at some of the major corporations that are headquartered here.”

The damage to the local business community is hard to ignore: Mike Logan, president and CEO of the Minneapolis Regional Chamber, said he has heard restaurants and retailers report declines in overall sales of 40-80% compared to typical January operations. The reasons behind that decline in foot traffic, he said, have ranged from an abundance of concern about being accosted or stopped to worries about being detained, irrespective of status.

Adam Duininck, president and CEO of MPLS Downtown Council, said the events over the past few weeks have thrown a “monkey wrench” into the progress the city has made on the safety and economic vitality in the urban core. He also said he has heard reports of 50-60% declines in sales from retailers and restaurants.

In turn, hundreds of Minnesota businesses closed on Friday as part of a general strike to protest ICE. Logan expects the economic impact from Friday alone to be in the millions, adding that the aftermath of ICE’s presence could cost businesses tens or hundreds of millions of dollars over the coming weeks and months.

“The most disproportionate impact on retail has been experienced in some of our commercial corridors that have the highest ethnic number of restaurants and retail outlets,” Logan said. “We don’t know what the mid- and longer-term impacts will be. Some of those businesses may never reopen; it really will depend on the longevity of the surge.”

The balancing act of responding

Duininck said he believes CEOs signed on to the letter to show unity, frustration and concern, and “to let the public know that they’re concerned and working on it.” He added that it attracted criticism from progressives, saying it didn’t do anything, and praise from others for taking a safe and peaceful approach.

“There are going to be voices on all sides, and I think that’s something any leader today — in today’s age — has to grapple with, [while] doing their best to lead their organization and be part of a business community, as well,” Duininck said.

Lola Bakare — a CMO adviser and author of “Responsible Marketing: How to Create an Authentic and Inclusive Marketing Strategy” — said any statements on ICE need to employ some of the same tactics she recommends to companies when they’re making apologies. Those include naming and acknowledging the specific harm. In this case, she said that would mean naming the two people killed by ICE agents and calling out ICE directly.

Without doing so, Bakare said, “it becomes something that just doesn’t have the ability to create any real belief in the hearts and minds of the people that it’s meant to interact with.”

She compared this statement with how Target, in her opinion, fell short in addressing employees’ concerns when its CEO sent an email to staff last year that didn’t directly say where the company stood on diversity, equity and inclusion. “The potential for a Target-like effect,” in which companies see a decline in performance following this statement, she said, “is definitely possible for everyone involved.”

“What should be feared most is the situation that they create when they don’t speak out,” Bakare said. “These companies have a lot of opportunity to be the voice that energizes, inspires and comforts people in these moments of national pain and grief, and they’re just missing the opportunity.”

As an example of an organization that responded in the correct way, Bakare credited the National Basketball Players Association for releasing a statement naming the two people who lost their lives at the hands of ICE agents. The group defended the right to freedom of speech, stood in solidarity with the people of Minnesota and said it refuses “to let the flames of division threaten the civil liberties that are meant to protect us all.”

“They very passionately took a side, and that’s what it takes to really be compelling in speaking out,” Bakare said. “They weren’t focused on appeasing the forces from where the harm is coming.”

What businesses and employees can do

Other businesses and lower-level employees have publicly taken a stand against the ICE crackdowns, with protests growing over the past week, particularly during Minnesota’s general strike on Jan. 23

Logan estimated as many as 500-700 businesses closed on Friday in protest. Organizers called for no work, school or shopping while crowds of people marched in protest. And more workers are calling on their employers to take action. More than 450 tech workers from companies such as Google, Amazon, Salesforce and Meta signed a letter urging their CEOs to demand that ICE leave cities, among other demands.

“It’s on everyone’s minds,” University of Minnesota’s Allen said. “There is a palpable sense of anxiety and frustration — and for many, anger — about what’s happened in the past month-plus, and in particular the shooting that happened on Saturday morning.”

While company executives may not be speaking out directly, workers and customers have legal routes to oppose ICE agents on the ground: They can decline to talk to them, refuse to consent to searches or ask for an attorney, according to the Associated Press. Anyone, including federal agents, can legally enter public spaces such as store aisles, parking lots and dining areas, John Medeiros of the corporate immigration practice at Minneapolis-based law firm Nilan Johnson Lewis told the Associated Press.

“Businesses can elect to close or curtail hours,” Allen added. “Businesses here in Minneapolis, in particular, are increasingly locking their doors and having customers present themselves and knock, and then are allowing people to come in.”

Minneapolis Regional Chamber’s Logan said businesses should study up on their rights and what kind of access they have to give to ICE agents, and speak with groups such as the American Business Immigration Coalition.

Duininck from the MPLS Downtown Council said he encourages businesses to show care, compassion and support for their employees and customers. He said he has seen more employers allow employees to be able to work from home, adding that they should also support employees with mental health services or other employee assistance programs.

“It’s showing up for your teams and your employees, and then trying to do the best you can, and in very challenging circumstances,” Duininck said.