US retail giant Target has blamed a backlash against its Pride merchandise for a drop in sales.
The Minneapolis-based company posted a 5pc drop in sales to $24.8bn (£19.5bn) in the second quarter – its first decline in six years.
It comes after Target was hit by a backlash over its range of products to support the LGBT+ community, in particular its displays of merchandise to celebrate Pride month.
The retail chain faced criticism and homophobic abuse led by far-Right personalities over products including gender fluid mugs, “queer all year” calendars and children’s books entitled Bye, Bye Binary, Pride 1,2,3 and I’m Not a Girl.
Other ranges included a collaboration with British transgender designer Erik Carnell’s brand, Abprallen, which has been criticised for making clothes with images of pentagrams, horned skulls and other Satanic products.
Target eventually removed some products from its 2,000-strong Pride collection citing staff safety after an increase in confrontations between customers and employees and damage to displays.
The decision prompted further outcry from Target employees who celebrate Pride.
Target bosses have said they cannot pin down exactly how much of an impact the boycott had on sales, but that trading improved in July from June.
Brian Cornell, chief executive of Target, said the company had learned from the backlash and would be more cautious about its merchandise offering for “heritage” months, which celebrate various ethnic and marginalised groups.
He told reporters: “We’ll continue to celebrate Pride and other heritage moments, which are just one part of our commitment to support diverse teams and guests.
“However, 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.”
It follows a similar crisis at Bud Light, which suffered a sharp drop in sales in the US amid a controversy over its collaboration with transgender TikTok influencer Dylan Mulvaney.
Anheuser-Busch InBev, the world’s biggest brewer, said falling Bud Light sales contributed to a 10.5pc fall in revenues in the second quarter.
Target said its lacklustre sales figures were also caused by the impact of surging inflation on consumer spending, with high food prices putting a strain on household budgets and elevated interest rates making credit cards more expensive to use.
The chain said sales will continue to decline for the rest of the year and cut its profit outlook. Bosses also pointed to the looming end of a moratorium on student loan repayments, which had eased the strain on students during the pandemic.
Despite this, Target posted better-than-expected profits of $835m in the most recent quarter as it reined in inventory to reflect more cautious consumer spending.
ncG1vNJzZmivp6x7tbHLnp6rmaCde6S7ja6iaJqlqLavsdKsZmtoYmh8cYSOam1oqpWprqq4xKtkrZminLK1ecGlmKado2Kvoq%2FKpZisoF2lv6qwxGajqK%2BVp3q0rcueqmg%3D