Report: Target’s value drops $10B in 10 days.
Retail Giant Target Loses $10 Billion in Market Capitalization Due to Backlash Over LGBTQ+ PRIDE Displays
Retail giant Target has suffered a significant loss of $10 billion in market capitalization in just ten days. This loss is largely attributed to the backlash over the company’s prominent LGBTQ+ PRIDE displays, including transgender-friendly clothing items for children.
According to a report published by The New York Post, Target’s stock price dropped from $160.96 to $138.93 per share after viral videos surfaced showing “tuck-friendly” and “binding” bathing suits for trans-identifying kids, along with greeting cards celebrating queerness in a display aimed at young children.
This 14% decrease in value translates to a $10 billion loss for the Minnesota-based company.
Boycott Calls Grow Louder
As soon as word began to spread across social media platforms about the retailer’s prominent PRIDE displays, which also included LGBTQ+ themed baby clothes, calls quickly began to grow louder for a boycott of the company.
According to earlier reports, Target immediately focused on damage control. Executives participated in an “emergency call” in an effort to avoid what one insider referred to as a “Bud Light situation.”
The “Bud Light Situation”
The “Bud Light situation” referenced by the insider was the immediate backlash and plummeting sales that followed a short-lived partnership between the Anheuser-Busch signature product and trans-identifying influencer Dylan Mulvaney. In the weeks following Mulvaney’s promotion, Anheuser-Busch lost billions in market capitalization, and at least two marketing executives connected with the partnership were placed on leave.
By late last week, Investors Business Daily was reporting that Anheuser-Busch had already lost upwards of $17.5 billion, and the company was resorting to offering retailers the chance to sell back expired merchandise that was still sitting on shelves.
Target’s Response
Target executives took swift action to address the backlash, with some stores being instructed to move the entire PRIDE section to a smaller area of the store. From the front of the store to the back, there could be no mannequins or large signage promoting the PRIDE displays.
Despite these efforts, the company still suffered a significant loss in market capitalization, highlighting the importance of understanding and responding to consumer sentiment in today’s market.
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