Woke marketing and support for Gay Pride and LGBTQ communities have had a major impact on Target in the US and several retailers who at the time thought it was smart to jump onto social media issues.
Target and Anheuser-Busch, the brewer of Bud Light, have discovered the cost of getting caught in the middle of social issues with both organizations witnessing major sales declines because of their approach to supporting Gay Pride.
In Australia the Target brand is owned by Wesfarmers.
Sales at both businesses suffered over marketing efforts that backfired and caused shoppers on both sides of the debate to call for boycotts.
Anheuser-Busch came under fire for a social-media promotion with a transgender influencer.
Target was criticised for store displays of merchandise for Pride Month that included gender-neutral swimsuits. Then each company’s response angered supporters of the LGBTQ community.
Overnight Target said a customer backlash in response to its Pride month merchandise cut into sales during its latest quarter, compounding its struggles with cautious consumers and ending a six-year streak of revenue growth for the retailer.
Target said shopper backlash over its Pride Month collection, as well as cautious consumers, pushed sales sharply lower in the most recent quarter.
The retailer said it expected sales to decline again in the current quarter and lowered its profit goal for the full year.
Target stock had fallen 16% this year as consumers deserted the retailer because of their support of the LGBTQ community.
“As we navigate an ever-changing operating and social environment, we are applying what we learned,” Brian Cornell, Target’s longtime chief executive, said on a call with reporters.
He said customers view its stores as a “happy place” and it wants to continue to be such a destination for all shoppers. “It’s that place that they go to get away from everyday life,” he said.
Target’s comparable sales, fell 5.4% in the three months ended July 29, worse than the company’s expectation for a low single-digit percentage decline.
In comparison rival retailers such as TJX reported a 6% jump in comparable sales in the same quarter and raised its sales growth and profit targets for the year.
TJX said it had strong foot traffic to its stores and demand for apparel and home goods. Shares gained 4% on Wednesday.
Target counts on discretionary categories such as toys and electronics for around 54% of its annual sales, according to financial filings.
