Target cites Pride merch protests in sales drop report, other retailers see increases

 

THE WORLD OF RETAIL IS CELEBRATING HIGHER-THAN-EXPECTED SALES REVENUE FOR THE MONTH OF JULY –

 

BUT JUST AS THE POSITIVE RETAIL NEWS WAS RELEASED –

TARGET WAS ISOLATED FROM THE CELEBRATION – SEEING THE OPPOSITE TREND.

IN ITS SECOND QUARTERLY SALES REPORT – 

SALES DROPPED FOR THE FIRST TIME IN **SIX YEARS.

THE MEDIA – WERE QUICK TO POINT TO A REASON WHY.

 

HEADLINES ACROSS THE INTERNET READ

“PRIDE MONTH BACKLASH HURT TARGET’S SALES”

“TARGET SALES DROP AFTER ‘NEGATIVE REACTION’ TO PRIDE MONTH COLLECTION”

“TARGET SEES DROP IN SALES AFTER “RIGHTWING BACKLASH.”

“TARGET LEARNS TOUGH LESSON”

AND – “BOYCOTTS WORK!”

 

THIS IS THE MERCHANDISE TARGET BEGAN TO SELL AHEAD OF PRIDE MONTH IN JUNE.

THE COLLECTION INCLUDED “TUCK-FRIENDLY” SWIMSUITS FOR MALE-TO-FEMALE TRANSGENDERS –

WHICH SPARKED CONTROVERSY – AND A BOYCOTT.

TARGET’S CEO BRIAN CORNELL SAID THE BOYCOTT – PLAYED A ROLE IN THE DISAPPOINTING SECOND QUARTER SALES REPORT.

 

CORNELL SAID TARGET WILL MAKE ADJUSTMENTS TO FUTURE PRIDE MONTH COLLECTIONS – 

BUT REITERATED – THE COMPANY **WILL CONTINUE CELEBRATING PRIDE –

AND BELIEVES THINGS ARE STARTING TO STABILIZE AGAIN.

 

“We’ll continue to celebrate Pride and other heritage moments, which are just one part of our commitment to support a diverse team and guests.”

 

“As we navigate an ever changing operating and social environment, we’re applying what we’ve learned to ensure we’re staying close to our guests and their expectations of Target.”

 

WHILE THE CEO DOES CITE THE BOYCOTT AS ONE REASON FOR ITS POOR PERFORMANCE –

CORNELL ALSO SAYS CONSISTENT INFLATION IS DETERRING CUSTOMERS FROM SPENDING.

 

 

FROM MAY TO JULY – THE SECOND QUARTER – RETAIL SALES OVERALL NEVER DIPPED.

SPENDING WAS UP 2.3 PERCENT YEAR-OVER-YEAR.

WHICH IS THE SAME TIME FRAME TARGET SAW ITS FIRST DIP IN SIX YEARS.

CONSUMER SPENDING AS A WHOLE – WAS UP IN THE MONTH OF JULY – AND HIT A RECORD HIGH IN THE SECOND QUARTER.

 

A QUICK LOOK AT THE NUMBERS –

TARGET SALES DROPPED 5.4 PERCENT IN THE SECOND QUARTER COMPARED TO THE SAME PERIOD LAST YEAR.

 

**ONLINE SALES – FELL NEARLY TWICE THAT – AT 10.5 PERCENT.

 

TARGET’S TOTAL REVENUE IS 24.8 BILLION DOLLARS.

WHICH IS NEARLY A 5 PERCENT DECLINE YEAR-OVER-YEAR.

 

THE COMPANY’S STOCK PRICE FELL NEARLY 20 PERCENT AFTER IT’S PRIDE COLLECTION WAS REVEALED IN MAY –

AND MONTHS LATER – THE COMPANY IS STRUGGLING TO REGAIN ITS GROUND.

 

WHILE TARGET EXPERIENCED SECOND QUARTER WOES –

WALMART POSTED THEIR QUARTERLY EARNINGS TODAY.

SALES ARE UP 6 PERCENT.

ALMOST AS MUCH AS TARGET IS DOWN.