Target Corporation has announced a notable decline in sales, which it attributes to the backlash it faced in response to its Pride Month collection earlier this year. The retail giant reported a 5.4% drop in quarterly sales for the second quarter ending July 29 compared to the same period last year, marking its first quarterly sales decline in six years. Online sales experienced an even steeper decline, falling by 10.5%, and both the number of transactions and the average transaction amount also decreased during this period. The company’s total revenue of $24.8 billion was down by 4.9% from the previous year.
The Minneapolis-based company has stated that due to the impact of these “recent sales trends,” it has adjusted its expectations for overall sales and profits for the entire fiscal year. The decline in sales is being attributed to the negative reception of Target’s “Pride” collection, which was released earlier this year. The collection featured a range of products with LGBTQ+ themes, including a kids swimsuit with a tag promoting inclusivity across body types and gender expressions. Additionally, the collection included LGBT-themed books targeted at young children, such as “The Pronoun Book” and “Bye Bye Binary,” which dealt with themes of gender identity.
Target also included an adult-oriented “Pride” collection, which featured items such as swimsuits designed for transgender individuals and clothing with bold LGBTQ+ statements. However, the merchandise faced backlash and calls for a boycott on social media platforms. In response to the controversy and concerns for employee safety, Target decided to pull some of the “Pride” merchandise and moved displays to the back of its stores.
The negative public reaction to the “Pride” collection significantly impacted Target’s financial performance, with its stock price plummeting nearly 20% following the calls for a boycott, and it has yet to recover. Despite the downturn in sales, Target’s recent earnings report did highlight higher-than-expected profit margins due to reduced discounts and inventory costs.
Target’s Chief Growth Officer, Christina Hennington, acknowledged the adverse effects of the backlash, describing it as a “strong reaction to this year’s Pride assortment.” She emphasized that the company views this reaction as an opportunity to reassess its approach and make necessary changes to future Pride collections. Target is reportedly considering adjustments to the timing, placement, and selection of brands for its Pride offerings in the coming year.
The situation with Target is not unique, as other companies also encountered backlash to their Pride-themed merchandise this summer. Anheuser-Busch, the parent company of Bud Light, faced a boycott and a significant loss of sales amounting to approximately $395 million in response to its partnership with a trans-identifying influencer. The impact of such controversies highlights the growing significance of consumer sentiment and societal values in shaping purchasing decisions and the overall performance of businesses.