Target Losing Billions in Value Is Unlikely About Boycotts
Target's stock price has been trending downwards amid calls for a boycott of the retailer over its LGBTQ+ pride range, losing nearly 20 percent in value in the past two weeks.The rapid decline in the company's market valuation has been heralded by some as a sign of the boycott of the brand working, with $14 billion knocked off its market capitalization—the total value of Target shares.However, one market analyst told Newsweek that the recent backlash had precipitated a "probably negligible" effect on investor sentiments, with the most likely cause of the stock sell-off being a first quarter earnings report on May 17 which announced flat sales and a gloomy forecast for the rest of 2023.Jeremy Bowman, a contributing analyst at The Motley Fool, an investment advice firm, suggested that the latest results showed Target's coronavirus pandemic boom was over, and its valuation was being readjusted to its new sales expectations.Target's pride range, which appeared in stores around May 10, included rainbow-colored children's clothes, a T-shirt with the slogan "trans people will always exist," and a onesie with the words "bien proud" in the colors of the LGBTQ+ flag.The retail giant is not the only brand to face calls for a boycott over its advocacy for the LGBTQ+ community of late.
While experts have said such campaigns provide an opportunity for brands to appeal to consumers in new markets, critics have accused companies of alienating their traditional customer base.In a statement to Newsweek on May 23, Kayla Castaneda, a spokesperson for Target, said it would be removing items from the range that had been the focus of "threats" towards staff, specifically those "at the center of the most significant confrontational behavior."As.
