Target Corp, (TGT) CEO Brian Cornell has long prided the retailer on … well, Pride.
Support for diversity, equity, and inclusion, whether through hiring, merchandising, or philanthropy, has been key to its upbeat, urbane identity, especially its embrace of LGBTQ+ Pride Month.
"When we think about purpose at Target, it's really about helping all the families, and that 'all' word is really important," Cornell told Fortune’s Next Leadership last week. "Most of America shops at Target, so we want to do the right thing to support families across the country."
"I think those are just good business decisions, and it's the right thing for society, and it's a great thing for our brand," Cornell said.
But Target’s mood has turned as the company seems to have prioritized law and order over rainbow displays.
For example, Cornell recently used the enormous platform of announcing first quarter earnings to call out retail theft and violent crime at its stores, which he claims will cost the retailer $500 million in profits. If things don’t get better, Cornell suggested, Target will close stores. Safety of its employees and customers are paramount, he said.
But you can’t mention crime and cities without accounting for race and poverty. And conservative publications like the Wall Street Journal seized upon Cornell’s words to criticize progressive cities and states for being too soft on crime.
And now Target has taken an even more consequential action, again in the name of security and safety.
Image source: Justin Sullivan/Getty Images
Removing Merchandise Right-Wingers Hate
Less than a week after Cornell talked up Target’s commitment to diversity on the Fortune podcast, the retailer is pulling some products from its LGBTQ+ Pride Month assortment at its nearly 2,000 stores across the United States.
The move is in response to criticism and threats of violence from right wing extremists who have denounced the retailer for being too woke.
“For more than a decade, Target has offered an assortment of products aimed at celebrating Pride Month,” the company said in a statement. “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.”
Target wouldn’t say much beyond that statement. But on the chopping block is apparel made from UK-based artist Abprallen, which contributed three designs to Target's 2023 Pride collection: two outer-space-themed messenger bags and a sweatshirt reading "cure transphobia." Right wing groups also accuse Abprallen of promoting Satanism.
The company plans to remove more merchandise though it’s unclear what percentage of the Pride collection will stay in warehouses.
Incidents at Target Stores
Target is no stranger to right wing attacks. The retailer didn’t budge when conservatives called for a boycott because of its policy of allowing transgender people to use whatever bathroom they want. That’s what makes this decision so unusual.
But the retailer has also seen its fair share of incidents in recent years, most notably during the pandemic when a woman tried to rip down a stand that carried covid masks. In another recent video that was widely circulated on social media, a security guard punched a Black woman demanding reparations after she charged at him.
However, one particular individual has caught the attention of retailers and the FBI. Ethan Schmidt-Crockett, a well known anti-LGBTQ+ provocateur in Arizona, has harassed people at Barnes & Noble and previously threatened to “hunt down” LGBTQ+ supporters in Target stores.
No Room For Error
But Target’s decision to remove merchandise because of threats is really unprecedented and risky. For one thing, the retailer’s core strength is working with designers to create unique merchandise, especially apparel and accessories. Removing such products at all 1,954 stores because of right wing threats sends a bleak message to current and would-be partners.
Target also knows that it risks emboldening extremists while alienating the LGBTQ+ community, a core customer group it desperately needs to shop at its stores.
Target doesn’t have a lot of room for error this year. Due to inflation and an uncertain economy, consumers have considerably cut spending, especially in discretionary categories like apparel, accessories, and home goods. In the first quarter, the retailer only managed to eke out a small comparable sales gain at its stores.
The company is really counting on the second half of the year to make its projected numbers.
“We acknowledge that there's a lot of volatility and that we cannot predict the future, but our expectation is that some of the strengths of Target really amplify during the back half of the year,” Christina Hennington, chief growth officer, told analysts. “And it starts with back to school and back to college where the full value proposition of Target is really put on display.”
By the way, younger people, including Generation Z, overwhelmingly support LGBTQ+ rights, as a survey from Toluna says nearly two-thirds of Gen Z ages 18-25 are worried about LGBTQ+ rights.
