Year
2026
Authors
KÜBLER Raoul, HEWETT Kelly, KOEN PAUWELS Koen, EILERT Meike
Abstract
Most negative incidents facing retail brands dissipate without consequence, so a critical challenge is predicting which ones escalate into crises with reputational and financial repercussions. We address this challenge by tracking how stakeholder reactions unfold across traditional media, social media, and consumer mindset metrics surrounding 510 retail incidents. Using dynamic time warping, we identify 11 distinct trajectory types, i.e. recurring temporal patterns in stakeholder responses, and show that they predict whether an incident reduces retailer firm value. Incidents escalate into crises when an immediate negative media frame for an incident coincides with deteriorating retailer reputation and social media amplification. When these adverse signals align, cumulative abnormal returns become consistently negative. In contrast, incidents following gradual or mixed media trajectories typically dissipate without financial harm, even when aggregate media volume is high. The temporal shape of stakeholder reactions, rather than their aggregate volume, determines crisis outcomes. Moreover, retailer communication timing matters more than volume: restrained, early communication can shape developing narratives, whereas heavy reactive communication is associated with stock market losses. Our trajectory-based framework equips managers with actionable early-warning signals to distinguish routine negativity from high-risk events and calibrate response strategies accordingly.
HEWETT, K., KÜBLER, R., KOEN PAUWELS, K. et EILERT, M. (2026). Don’t panic: how stakeholder response patterns predict retail crises and the impact of retailer reactions. Journal of Retailing, In press.