July 2, 2015. International Business Times by Sarah Berger.- In the wake of Trump’s derogatory comments about Mexican immigrants, Macy’s cut ties Wednesday with the business titan and 2016 presidential contender. The department store said they would no longer carry Trump’s menswear collection, which featured shirts, ties and watches.
Macy’s is not alone: NBCUniversal, Univision, mattress maker Serta and other companies have also cut ties with Trump in recent days after he called Mexicans crossing the U.S. border drug dealers and “rapists.” While some praised company leaders for taking an ethical stand against Trump’s racism remarks, Macy’s and other brands may also be making a business move. The broken deals point to the growing influence of Hispanic consumers in the United States. As the Latino demographic in the U.S. rapidly increases, so does their buying power, and businesses are starting to realize that value.
Meanwhile, Hispanics are becoming more educated, with college enrollment among Hispanics ages 18 to 24 more than tripling from 1996 to 2012, Pew found. As a result, their share of new entrants into the civilian labor force has reached 20 percent in white and gray collar jobs, said Carlos Santiago, president and chief strategist of Santiago Solutions Group, a leading growth strategy consultancy focused on Hispanic markets. “This is all pushing their buying power closer to $1.5-1.7 trillion annually,” he said.
Santiago said Latino customers represent an opportunity for Macy’s to grow its business model. “Macy’s Hispanic base of buyers is significant and growing while the non-Hispanic is declining slowly,” Santiago said. “They (Macy’s) have to protect their growing loyal base just as their competitors like Nordstrom, JC Penney’s, Target and WalMart are. In this race to capture the new growth, a change in public image is worth millions of dollars in goodwill and loyalty.”
For Latino shoppers, Macy’s decision to cut ties with Trump did not go unnoticed. Stephanie Garcia, a Latina Macy’s shopper, was upset by Donald Trump’s comments and praised Macy’s decision Thursday as she shopped for Nine West shoes at the retailer’s Herald Square flagship. “I don’t know if not selling a few ties will hurt him (Donald Trump) in the long run, but I hope it does,” Garcia said.
To Read the full Article: “Hispanic Buying Power 2015: What Donald Trump Mexican Controversy Tells Us About Latino Consumers”