Tuesday, June 20, 2023

NEW INC. MAGAZINE COLUMN BY HOWARD TULLMAN

 

Walgreens Whiffs by Trying to Dodge the Truth

Companies and consumers are caught in a political spitting contest when most of the time they simply want to sell and buy everyday products.

BY HOWARD TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH INVESTORS@TULLMAN


It’s becoming harder and harder for businesses to try to properly position, present, and then justify their day-to-day operating decisions (not to mention new initiatives, experiments and store designs) to their actual customers -- the vast majority of basically middle-of-the-road people who just want to get on with their lives and don’t regard every purchase they make as conscious and intentional demonstrations of strident political statements and positions. Sometimes a rose is just a rose, coffee’s just a cuppa, and having a beer and a brat isn’t burdened by momentous political concerns. That’s why most businesses--large and small -- try to stay as far away from politics as possible and encourage their employees to do the same,  at least at work. The very best place to leave your politics is at the office door.

When you look at things more closely, these so-called social and political “problems” are rarely the serious concerns of customers or consumers -- those folks are all about business as usual--not that they ever mind watching a stupid cat fight from time to time. The problems for most companies -- Anheuser Busch, Target, Major League Baseball -- flow from the constant noise, nagging, and nuisance of the crazy shit-disturbers on both sides of whatever the latest Fox-flogged installment of bogus concern and flatulent outrage happens to be.  Their painful posturing and fake outrage are then amplified by the click-crazy media and quickly spread across social media by people with a lot of anger, angst, and aggression and not much else to do with their time. But if you aren’t careful, their simplistic and baseless slanders can still slime your business.

 The insurmountable challenge -- much like any debate with your teenage children -- is that there’s no right answer or remedy sufficient to satisfy people who are invested in and enjoying the tumult, who thrive by surfing the strife, and who haven’t the slightest interest in any reasonable discussion or resolution. Much like the MAGAt morons in Congress, the mess and the misery, the distraction and disruption, and the colossal wastes of time and energy are the entire point of the exercise.   

So, it’s almost impossible for even the best-intentioned managers, as they try to run their companies, to successfully navigate the increasingly perilous path between the deluded debaters, the drop-in dilettantes, and the dishonest disrupters. For sure, you don’t want these outsiders influencing or interfering with the way you run your business.  But too often one unfortunate result-- knowing that these idiots are out there-- is a kind of paralysis that sets in and gets in the way of innovation, risk taking, and forward motion.

 That’s not a happy result for anyone, but there are actually worse, self-inflicted things that can happen to your company if you’re not careful. One of the worst mistakes any owner or manager can make is to lie to themselves and to their employees and customers. This happens so often lately because of the treacherous tension between political correctness, the pressure and fear of false and critical social media, and the continuing need for authenticity.

The only right approach in these cases is to tell the truth and tell it like it is. This is a lesson that Walgreens among plenty of other businesses clearly hasn’t learned. Half a lie is still a lie and the whole truth is the only thing that stands the test of time and gets the job done.

 In the latest case, Walgreens introduced a new concept store in Chicago with only two aisles of basic products for shoppers to peruse while the rest of the merchandise is securely out of sight. With a perfectly straight face, while the entire world knows that retail stores are being flagrantly ripped off daily, Walgreens claimed that the new format is an experiment in digital-first merchandising to “benefit” customers. Not, mind you, to benefit customers by reducing shrinkage to avoid raising prices or closing the store entirely, but so that customers could order online for pickup or order in-store at kiosks. And, to make things worse, Walgreens’ messaging specifically said that the new design had nothing to do with anti-theft measures that every other retailer in the country has implemented. This was a complete lie and an attempt to head off the obvious, expected noise from the usual suspects.

When the laughing died down, Walgreens’ management looked like complete idiots. Worse yet, their PR positioning didn’t work for a minute. Regular customers were inconvenienced, obviously unhappy, and insulted and offended by Walgreens transparent explanation. Of course, the haters immediately turned out to cry racism and discrimination. So, in short order, the company managed to make everyone unhappy.

 More importantly, Walgreens sacrificed a great deal of their customers’ hard-earned goodwill and the trust of the community as well. It’s clear that the alternative to telling the truth, even when the truth hurts, is a walk down the thankless path of trying to please a bunch of hypocrites and pro forma protestors while you fail to speak frankly and honestly to the people who count - your customers.  And equally importantly, you’re lying to your employees, who have a very serious stake in this conversation. Everyone understands that retail theft has reached epidemic levels, especially when “justified and explained” by naïve and manipulative politicians like the new mayor in Chicago. No one doubts the need for the stores to take appropriate actions to stop the bleeding.

The front line of defense, and the people most often in harm’s way of these assorted criminals, including organized shoplifting rings,  are team members, not the suits sitting back in the corporate offices. Telling these folks, mainly for insurance reasons, to do nothing to prevent the thefts; to ignore crooks and creeps running from the stores with bags full of merchandise; and to stand down while these arrogant assholes taunt them and make fools out of the paying customers isn’t a solution.  This policy is just the latest concession to the rampant crime we’re seeing in many major cities and the inability of their political leaders to do anything to confront or change the situation. The pols are encouraging the thieves to keep it up and this puts the employees at even greater risk which is what’s driving major retailers like Nordstroms and Walmart out of various downtown areas.

 If consumer trust and confidence in the honesty and sincerity of our leaders in every area of business, law and government isn’t already at historic lows, the weak and dishonest efforts like these by Walgreens to try to avoid having forthright and open conversations with all the stakeholders about what needs to be done and what actions can be taken just makes the situation worse.

 A lie may fool someone else, but it tells the truth about you.

 

 

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