Retail Store Credit Cards
Scholarly publications by ASA President Joya Misra undercut the credibility of sociology in addressing the important topic of low wage and precarious work. Her article, “Store Credit Cards Generate Corporate Profits and Disgruntled Workers” is a Marxist screed about exploitative companies forcing cashiers to aggressively and deceptively push their store credit cards on clueless vulnerable customers.
Another Misra article “Walking Mannequins: How Race and Gender Inequalities Shape Retail Clothing Work”, published in “Marxist Sociology”, shares sociological findings about harmful and discriminatory ‘racialized beauty hierarchies that are built into the 21st Century services workplace’. These two articles contain one incorrect assertion after another.
I share with Misra and others that low-wage employment is a important research topic. But it needs to be conducted with integrity with a balance of perspectives. Ssince 2018 I have worked as a low wage retail store worker, and have offered the card to thousands of customers. I have also studied the experience of cashiers at other companies in the industry. Prior to working at the store, I learned about credit card solicitation and risk management as as part of the sales organizations of enterprise technology companies. As the son of a distinguished bankruptcy judge, I also learned about credit at the kitchen table.
Some of her questionable findings based on sociology’s ‘objective scientific pursuit of knowledge’ include:
Finding: Store workers aggressively pitch credit cards to young people who don’t realize that cards hurt their credit score. “They are 18 years old and a credit card sounds awesome”. Reality: Very rare. Young customers are wary of cards, don’t trust corporations and have well attuned BS detectors. Few cashiers offer the cards to them and few young people apply.
Finding: Customers are unaware of the high interest on the store credit cards. Reality: Most know and pay their balances in full avoiding the crazy high interest and fees. In fact, I am impressed with the financial judgment and discipline most customers excercise. (This is a topic sociologists few will research because it violates accepted orthodoxy about rational self-interested actors.)
Finding: Stores discriminate against Black and Hispanic card applicants. Reality: Cashiers know this is illegal and against policy. Also there is no reason to do this. Cashiers are incented on the total number of card applications opened.
Finding: Management uses ‘electronic surveillance’ to see how many cards each worker and store opens. Reality: Most companies track store performance. This is positive and necessary for companies to identify future leaders.
Finding: At one retailer, a supervisor was required to sell 2.5 cards for every 10 transactions. Reality: Completely made-up. No stores set this unrealistic target and no associates achieve it. Anyone with a basic familiarity with retail stores knows.
Finding: Cashiers who perform above expectations “may get a gift card, a bonus of $1-$5 or a pack of gum”. Reality: Every company is different. Cashiers can receive $20 gift cards, $10 for every card opened, or gifts. High performing cashiers are fast-tracked for promotion. Their success with the cards can also open up professional opportunities in industries such as banking or sales.
Finding: Cashiers who don’t sell enough credit cards “may find themselves off the work schedule and without a job”. Reality: They may be assigned to non-cashier roles. It is unlikely they will be terminated or their hours significantly reduced.
Finding: Store managers rarely admit to workers that credit cards are profitable. Instead they claim they are ‘for brand awareness’. Reality: Wrong. This may be one person’s experience. Managers themselves don’t know the retailer’s financial model and proprietary agreements around store cards.
Finding: Store workers believe that credit cards are “the worst things ever”, “morally not what’s best for customers” and “leads them to financial ruin”. Reality: Wild exaggeration. Most cashiers are indifferent. It is partly true because there is some pressure put on cashiers.
I contacted Professor Misra. She responded cordially, checked the transcripts and confirmed that her source said the goal was 2.5 cards for every 10 transactions. (Misra is now co-editor of the American Sociological Review where I hope she is more careful).
Her article as well as other sociological work demonstrates that sociologists do not adequately address the important issues of low-wage and precarious work. They view solely from the victim/victimizer framework and do now allow for agency.