US retail giant Target has reported its first decline in sales in six years, following a backlash over its Pride Month merchandise. Sales fell by 5% in the April to June period compared with the same time last year, with the company citing both the controversy and the cost-of-living squeeze on shoppers.
The decline came after some of Target's LGBTQ Pride items sparked criticism, leading the firm to remove certain products from stores over concerns about staff safety. Items removed included those from a collaboration with transgender designer Erik Carnell's Abprallen label, which faced criticism for featuring pentagrams and horned skulls on other products.
Target's chief executive Brian Cornell said the impact of the boycott was difficult to separate from broader economic pressures. The company saw damage to in-store displays and clothing, which included rainbow-decorated t-shirts, 'gender fluid' mugs, and children's books titled 'Pride 1,2,3' and 'I'm not a girl'.
Cornell stated that the firm plans to approach future partnerships with caution while still celebrating 'heritage moments'. He noted that sales began to pick up again in July after the sharp drop in June, but the company forecast weaker performance for the rest of the year, partly due to the expiry of pandemic-era student loan payment pauses.
Target is the latest US company to face costs from LGBTQ-related backlash, following similar controversies at Disney and Bud Light. The report also offered a gloomy perspective on consumer health, with buyers cutting back on clothing and home decor as rising prices force more spending on groceries.
