Target Stocks Fall in Value After Boycott Over LGBTQ-Friendly Kids Clothes, Loses $10B in 10 Days

Over the past 10 days, Target has witnessed a significant decrease in market valuation, amounting to a loss of $10 billion. This decline in value comes as the popular retailer grapples with ongoing criticism regarding its Pride-themed clothing line designed for children. Target's reputation among US shoppers has suffered a significant blow this year due to the release of a controversial "PRIDE" apparel collection. The collection, which includes "tuck-friendly" swimwear and LGBTQ-friendly gear for infants and children, has garnered criticism, impacting the retailer's image as a "cheap-chic" destination.

Just a week ago, Target's stock value stood at $160.96 per share. However, in the wake of the controversy surrounding its "PRIDE" collection, the stock experienced a sharp decline, closing at $138.93 per share on May 26, 2023. This drop in value, amounting to nearly 14%, has resulted in a significant loss of approximately $10.1 billion in Target's valuation, bringing it down to $64.2 billion. This decline marks the retailer's lowest stock price in almost three years, per the New York Post.

Target experienced a significant drop in its stock value, comparable to one seen in 2022 when stocks normalized after a surge during the COVID pandemic. The retail chain has found itself embroiled in cultural debates regarding gender, leading to the relocation of its Pride section in select Southern stores. The decision to move the displays came after protesters knocked them over and confronted the store's employees.

The Minneapolis-headquartered company cited violent customer confrontations as one of the primary reasons for the nationwide "adjustment" in preparation for Pride month. "Since introducing this year's collection, we've experienced threats impacting our team members' sense of safety and well-being while at work, 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," according to a statement from Target's spokesperson to the New York Post.

Texas Senator Ted Cruz dedicated an entire episode of his weekly podcast on Friday to address the growing backlash and consumer-led retaliation, characterizing the boycott as a challenging yet justified response. Drawing a parallel to conservative opposition against Disney's criticizers of DeSantis, the 52-year-old senator likened the current backlash against Target to be justified, stating that the company had shown disrespect to its customers with its recent actions.

However, he acknowledged that successfully boycotting Target would be a formidable challenge, suggesting that conservatives may find it harder to refrain from supporting a department store like Target compared to a beer company like Bud Light, reported Daily Mail.

Speaking on his Verdict podcast, Cruz pointed out that conservatives have historically struggled with boycotts. He noted that the current controversy surrounding Target exemplifies the disconnect between large corporations and their customers, emphasizing that these companies often fail to understand and respect their customer base.

"You can be annoyed at Disney, but if your kids really want to go to Disney World, that can be hard to say no to. There're not a lot of alternatives. There's Six Flags, but Disney World is a pretty unique offering. I mean, look, there's only one Snow White or Cinderella, or Toy Story from Pixar. That is a difficult product for many people to give up permanently," Cruz made the statement during an episode of his podcast.

However, Target CEO Brian Cornell has expressed his support for the LGBTQ-friendly merchandise, stating that selling them aligns with the values of inclusivity and is beneficial for society as a whole.