Bauer’s Business Blunder

Posted by: | September 14, 2011 | 1 Comment

 

Struggling retailers like Eddie Bauer rely on sales to clear out inventory at seasons' end (image from leeloveshottrends.com)

Think it’s impossible to offend customers with lower prices? Think again.

Bellevue, Washington based outdoor clothing retailer Eddie Bauer sparked anger and criticism last November when it announced its Canadian outlets would put on their own version of the successful Veterans’ Day sale that happens on the week of November 11th at U.S stores. As this holiday is traditionally a prelude to Black Friday, the country’s busiest shopping day, American consumers don’t object to the 75% discount on fall items.

It seems that Canadian consumers, however, don’t see it as ethical to commercialize a day honoring veterans. The announcement of EB’s “Remembrance Day Sale” sparked outrage among veterans, who’s distaste quickly spread across social media websites and the media, generating a lot of negative attention for the company.

What this story exemplifies is how business ethics can vary dramatically between two seemingly similar markets. Apparently the marketing department at Eddie Bauer was not sensitive to the difference between Veterans Day, and Canada’s more solemn Remembrance Day. Despite the rough start, the promotion was rebranded and went on as scheduled.

 


Comments

1 Comment so far

  1. Curtis Valentine on September 30, 2011 2:29 pm

    Cultural differences is very important to think of when making decisions involving different markets. I thought it was very good that you recognized factor for why their event failed.

Name (required)

Email (required)

Website

Speak your mind

Spam prevention powered by Akismet