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Barneys New York: A Case of “Shop and Frisk”

Cellante, C., Kelly, T., O’Rourke, J. S. (editor)
February 15, 2018
SKU:
BUS-004119
Region: 
North America
Topic: 
Strategy & General Management, Marketing & Sales
Length: 
14 pages
Keywords: 
Brand Management, Conflict Management, customer relations, retail, racist brand
Copyrighted by: 
Notre Dame
Student Price: 
$4.00 (€3.82)
Average rating: 
0

In late 2013, Barneys New York quickly found itself amidst scandal. Within the span of a few days, Barneys CEO Mark Lee’s attention shifted from ensuring record-breaking holiday sales to a lawsuit, an Attorney General’s investigation, a potential boycott, and his company’s biggest holiday contract hanging in the balance. News media and political activists labeled Barneys a racist brand, and Lee needed to find a way to regain the trust of customers and the public at large.

Learning Outcomes: 
  1. To illustrate how quickly the public will ascribe blame to a company, even over unproven allegations
  2. To provide an example of a company’s struggle to prevent a significant source of revenue loss while staying committed to fairness, equality, and customer service
  3. To illustrate the need for a proactive public relations strategy that can effectively guide the public discourse that follows a crisis
  4. To encourage discussion of social media as a means of corporate communication and the pros and cons associated with its use
  5. To demonstrate how a company might work collaboratively with interest groups to formulate an agreeable solution