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

Abstract

In late 2013, Barneys New York quickly found itself embroiled in controversy. 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.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Exhibit 1: Barneys CEO Mark Lee’s Facebook Post

Barneys New York

October 24, 2013

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Barneys New York believes that no customer should have the unacceptable experience described in recent media reports, and we offer our sincere regret and deepest apologies.

Further to our statement of yesterday, we want to reinforce that Barneys New York has zero tolerance for any form of discrimination. We are a strong proponent of equal rights and equal treatment for all human beings. Our mission is to ensure that all customers receive the highest-quality service—without exception.

To this end, we are conducting a thorough review of our practices and procedures as they relate to these matters to ensure that they reflect our continued commitment to fairness and equality. To lead this review, we have retained a civil rights expert, Michael Yaki, who also serves on the U.S. Commission on Civil Rights. The Commission has been the nation’s watchdog for civil rights for more than 50 years. Mr. Yaki will be provided with unrestricted access to all aspects of our store operations.

In addition, Barneys New York has reached out to community leaders to begin a dialogue on this important issue.

Sincerely,

Mark Lee

CEO of Barneys New York

Source: Barneys New York Facebook Page. October 24, 2014. https://www.facebook.com/BarneysNY/posts/10151940354699244

Exhibit 2: Letter to Barneys CEO Mark Lee from the New York Attorney General’s Office

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Source: Lovett, Kenneth. “New York Attorney General Targeting Barneys, Macy’s over Racial Profiling Claims.” Daily News. October 29, 2013. Accessed February 21, 2015. http://www.nydailynews.com/new-york/lattorney-general-probe-barneys-macy-incidentslretailers-accused-repeated-troubling-behavior-shopping-black-state-involvedlay-law-article-1.1499643

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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