Per NYP
Target boycott calls over LGBTQ+ kids clothing resulted in the company losing $9 billion just a week after
5/26/2023
Target has recently rolled out its "PRIDE" collection, which was described as LGBTQ+-friendly clothing for kids. This resulted in calls for a boycott on social media, resulting in the retailer losing $9 billion in market value just a week later.
Target's stock was $160.96 before the controversy started, but once the collection broke out, it traded at $141.76. In terms of market capitalization, Target also saw a decline from $74.3 billion to just $65.3 billion in just a week, resulting in a 12% drop.
As the backlash intensified and called for boycotts grew, Target decided to remove certain items from its store and change certain things regarding its LGBTQ+ merchandise. In a statement, the retailer mentioned how their team members were experiencing threats as part of the backlash.
They specified how the threats were experienced when they introduced the year's collection and how their team members' sense of safety and work well-being were affected.
"Given these volatile circumstances, we are making adjustments to our plans, including removing items that have been at the center of the most significant confrontational behavior.”
Target gave no specifics on which particular clothes they would be removing but some of the items that sparked backlash online were "tuck-friendly" trans women swimsuits for kids.
In November, it was reported that organized retail crime, shoplifting, and theft resulted in Target experiencing $400 million in extra profit loss in 2022 compared to 2021. During that time, Target's CFO gave a statement during the earnings call saying they expect their gross margins to be reduced by over $600 million for the full year.
Collectively, retailers recently said that they lost $100 billion in 2022 to theft. These included organized retail theft as well as the usual smash-and-grab robberies.
This resulted in retailers like REI shutting down stores located downtown.
See flow at unusualwhales.com/flow.
Other News:
- Organized retail crime, shoplifting, and theft has driven $400 million in extra profit loss this year at Target
- Retailers say they lost $100 billion in theft
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