There is still power in the purse of the people. Companies across the nation should be aware by now that insulting the core group of people who pay the bills is a bad idea. People still care about personal and family values, and they don’t want any company telling them how to live.
Big-box retailer Target is still feeling the pain of the purse after it’s profit-cancelling marketing plan during Pride Month in June. LGBTQ+ friendly merchandise offended millions of Target customers who showed their displeasure by spending their money elsewhere. The company lost billions in valuation soon after.
From Fox Business:
Target experienced a sales downturn in the second quarter amid ongoing consumer backlash from the retailer’s Pride and transgender merchandise.
Negative reaction to Target’s Pride collection had a material impact on sales, Target CEO Brian Cornell said on a call with reporters.
Cornell tried to play off the massive marketing mistake by saying the company has navigated “an ever-changing operating and social environment” and will attempt to apply what executives learned. What they should have learned is not to tick off all the conservative mama-bears who don’t want their children exposed to “tuck friendly” swimsuits and similar items.
Target customers took their shopping elsewhere and Target’s market value fell to $57. 7 billion from $74 billion since the start of the public backlash in June. That’s a massive financial hit and when similar situations for Anheuser-Busch and Kohls are added in the market value loss for the three companies was $28.7 billion. That’s a lot of pain in these corporate purses.
What is striking about Target, which sells mostly non-essential products such as electronics and home décor, is it has not backed off its overwhelming support for Pride products. It just rearranged displays and pledged further support for rainbow causes. The company is reportedly trying to balance its product lines with more daily-use products. Inflation has caused people to cut back on discretionary items, and consumers walking out thanks to Pride products continues to hit Target dead center.
If Target really wants to right the ship, maybe it should take more pride in the majority of customers who spend money in its stores and not openly shun them.
- Big box retailer continues sharp sales slump over Pride Month stance.
- Target loses billions in company market value as customers walk away.
- The company CEO says executives have “learned” from the situation.
Source: Fox Business