Target’s sales plummet following backlash over Pride support.
Target’s Sales Decline After Backlash to Pride Month Collection
Target’s quarterly sales have taken a hit, falling 5.4% in the second quarter compared to last year, according to the company’s second quarter earnings report. Online sales saw an even greater decline of 10.5%. The number of transactions and average transaction amount also dropped. Target’s total revenue of $24.8 billion was 4.9% lower than the previous year.
Backlash Over “Pride” Collection
In May, Target faced backlash over its “Pride” collection, which included a kids swimsuit with a tag promoting inclusivity. The collection also featured LGBT-themed books for young children and an adult line with items like “tuck-friendly” swimsuits and apparel with bold statements. This sparked calls for a boycott on social media, leading Target to remove some merchandise and relocate displays to ensure employee safety.
Adjustments and Future Plans
Target’s chief growth officer, Christina Hennington, acknowledged the impact of the backlash on sales and stated that it serves as a signal for the company to pause, adapt, and learn. In response, Target plans to make changes to its ”Pride” collection next year, including timing, store placement, and brand selection.
Profit Margins and Industry Backlash
Despite the decline in sales, Target’s latest earnings report revealed higher profit margins than expected due to reduced discounts and inventory costs. Other companies, such as Bud Light’s parent company Anheuser-Busch, also faced backlash over their “Pride” merchandise this summer, resulting in significant sales losses.
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