Target suffers sales slump after backlash in ‘Pride Month’

Target’s said quarterly sales fell for the first time in six years — a result of “negative reaction” from customers to its spring collection “Pride,” which included “tuck-friendly” swimwear and LGBTQ-friendly gear for toddlers and kids.

Brian Cornell, who has been Target’s CEO since 2014, vaguely referred to Target’s disastrous Rainbow collection in an interview, saying, “As we navigate an ever-changing operational and social environment, we’re applying what we’ve learned. ” The Wall Street Journal.

According to Target, sales in stores and digital channels that have been open for at least a year fell 5.4% year over year Second Quarter Earnings Report released on Wednesday, while digital sales fell 10.5%.

Executives said they couldn’t quantify the impact of the Pride collection alone on comparable sales, The Journal reported.

“Several economic countercurrents are putting pressure on consumers,” Cornell also told the newspaper. While foot traffic at Target stores steadily recovered in July, stubbornly high inflation caused customers to buy groceries and other essentials instead of spending on clothing and impulse purchases.

Target revenue for the three-month period ended July 29 was $24.8 billion — 4.9% down from this time last year and worse than the company’s guidance.

The number came in slightly below the $25.2 billion expected by economists, though the drop isn’t surprising given Target stock lost nearly $14 billion as the Pride Month controversy made headlines worried.

The staggering losses were the result of a boycott that lasted over two weeks – sparked by Target’s May release of “PRIDE” – an LGBTQ-friendly line that includes clothing for children and “pocket-friendly” women’s swimwear with “extra crotch coverage.” ”

Customers have accused Target of spoiling children with the items – including alt-right rapper Forgiato Blow, who topped the iTunes charts with his rap song “Boycott Target,” which addressed an LGBTQ “agenda,” which the rapper called “too far.”

The backlash from conservative consumers, including aggressive reactions in some stores, prompted Target to pull some of its Pride items off the shelves in select locations and push back displays in others.

The move then prompted Pride supporters to condemn the company for falling victim to “extremists,” prompting a boycott from customers on both sides of the political spectrum.

The recent sales decline prompted Target to lower its full-year earnings guidance and now expects “comparable sales in a wide range around a mid-single-digit decline for the remainder of the year,” according to its Q2 report.

Despite the losses, Target will continue to celebrate Pride Month in 2024 with a collection, although executives told The Journal it will be a “more focused range of merchandise.”

The post reached out to Target for comment.

For years, Target has celebrated the LGBTQ+ community in June with a clothing line and other merchandise that celebrate rainbow colors and related slogans.

However, the move often got the retailer in trouble for its involvement in “rainbow capitalism,” which describes how it benefits from the commercialization of the LGBTQ+ community, particularly around June’s Pride month.

For Pride Month 2022, Target commissioned a team of seven LGBTQ+ artists to create its collection. Pieces included gender-neutral underwear and swimsuits.

There were also breast pads — a gender-affirming undergarment commonly used by transgender and non-binary people to flatten their chests — and pack boxers, which come with an extra pocket for a gender-affirming prosthesis.

Although LGBTQ customers seemed pleased with the Pride 2022 line, they nonetheless expressed disappointment that the inclusive clothing was only available during Pride celebrations.

Last year’s Pride collection was an improvement on 2021, when the retailer’s LGBTQ+ line was criticized for being “ugly” and unapproachable.