Target's Silence: From Proud Voice to Muted Retreat
Target withdrew part of its Pride collection ahead of Pride Month 2023 following boycotts, prompting a joint condemnation from over 100 LGBTQ+ advocacy organizations. Although the company issued a brief statement, it has not responded since. Experts note that retreating not only damages brand credibility but may also send the wrong signal to other businesses.
After years of loudly celebrating Pride Month every June, Target in 2023 had launched one of the most prominent LGBTQ+ community support campaigns in mass retail. However, after Pride merchandise faced boycotts and even attacks at some stores, Target's performance at the start of Pride Month was seen by many as cowardly.
Before the commemorative month had even officially begun, the retailer had already removed or downplayed its Pride collection at some stores. Since then, it has also not responded to calls from outside to express its full support as it had in the past.
"At this moment, Target must defend fairness and inclusion as it has for over a decade," said a coalition of 100 LGBTQ+ advocacy organizations, including longtime partner GLSEN, in a statement released the day before Pride Month began. "Target has consistently been among the brands that have offered sincere, authentic support to the LGBTQ+ community through outreach and policy. Target was recognized in 2022 by the Executive Leadership Council for its DEI commitments. Now is the time to prove that recognition is well-deserved."
Target's Pride Month history
This Pride Month, Target followed a process that many advocates view as a key element of corporate solidarity, especially following the Black Lives Matter protests. The retailer collaborated with independent LGBTQ+ designers and advocacy organizations to launch clothing, swimwear, footwear, accessories, toys, and related slogans, many of which featured uplifting, supportive, and even provocative messages. In-store signage was prominent and oversized, and displays were placed at store entrances.
The collection was fitting for a company with a rich history as an ally—not only through merchandise but also through its advocacy for marriage equality and its support for gender-inclusive restroom and fitting room policies.
However, the impact of this year's collection was significantly diminished by the retailer pulling items from some stores. This came after people spurred by escalating homophobia and stigmatization of the LGBTQ+ community vandalized displays and clashed with store employees. Agitators on social media and right-wing networks, including members of Congress, encouraged boycotts.
On May 31, a coalition of LGBTQ+ advocacy organizations called on the retailer to "issue a public statement within 24 hours reaffirming its commitment to the LGBTQ+ community." As of press time, five days had passed, and Target had not responded.
Coalition member GLSEN, founded by a group of teachers, develops anti-bullying programs and other support for LGBTQ+ students in kindergarten through 12th grade and has partnered with Target for over a decade. Executive Director Melanie Willingham-Jaggers said via email that Target can prioritize employee safety while continuing to sell its Pride merchandise.
"Headquarters personnel should work with store management and employees to develop safety plans to ensure that hardworking employees can safely carry out their duties," she said.
Silence
After issuing an initial statement on May 24, the retailer has remained silent. In that statement, the company explained that it had "made adjustments to our plans, including removing items that were at the center of the most intense confrontational behavior," and said, "Our focus now is on continuing to fulfill our commitment to the LGBTQIA+ community and standing with them during Pride Month and year-round."
Target also did not respond to multiple requests for comment made for this article.
Target's refusal to reaffirm its commitment to gay pride is widely seen as reflecting its fear of facing the sales and stock declines that Bud Light experienced. Bud Light faced intense social media backlash and boycotts after a brief partnership with a transgender influencer. In fact, in a research note on June 1, Wells Fargo analysts said Target's Pride collection "has generated significant negative in-store and social media attention," adding uncertainty to its already challenging near-term outlook and potentially hurting store traffic.
"Following the [Anheuser-Busch] incident, investors are highly sensitive to this issue," the analysts said.
The retailer continues to sell the Pride collection on its website and at many stores, including some where displays remain prominent. But according to Bob Witeck, president of Witeck Communications, its cautious approach is damaging its brand and its reputation among the LGBTQ+ community and other groups. Witeck Communications has focused on LGBTQ+-related communications strategies and market research for three decades. In a phone call, he said this amounts to turning away from its own previously stated values, suggesting hypocrisy, and risking rejection from all sides.
"You not only lose those who walk into your stores angry at you, but you also lose those you claim to welcome," he said. "If you start retreating from your values, what do you stand for?"
What Target should do
The need to establish and stick to corporate values partly stems from the fact that these values should now be based on human rights considerations, said Alison Taylor, executive director of the Ethical Systems project at NYU Stern School of Business. In this case, this requires both ensuring store employee safety and reaffirming a commitment to LGBTQ+ rights, both of which can be achieved with some effort.
Moreover, attacks on the rights of LGBTQ+ people have intensified in recent years, so Target should have been better prepared, she said in a phone call. The coalition noted in its statement that more than 500 anti-LGBTQ+ bills restricting fundamental freedoms have been introduced this year.
"My overall stance is that you lean into it and hold your ground, because I don't think there's a middle ground on this," Taylor said. "You need to be clear about your values, then prepare for backlash and stick with it. The right approach is to consult with affected stakeholders who have expertise and are impacted by these issues. Consult store employees, and consult the LGBTQ and transgender communities. Ideally, this should happen before these things occur, not after, but now it's a bit too late."
I didn't go to @targetthis week as planned, because they caved to this giant baby pic.twitter.com/g4saehKN2y
— Ronni the Thrilla from Manila (@LoveFromRonni) May 25, 2023
Barbara Kahn, a marketing professor at Wharton, said that failing to take a clear stance could damage its carefully maintained reputation, and Target should consider working with local authorities to strengthen store security to keep its displays intact.
"Obviously, Target has to consider the safety of its employees," she said via email. "If this is an important issue for Target—and given its years of commitment, I believe it is—then I think retreating sends the wrong signal. Even if enhanced security raises short-term costs, the long-term reputational benefits are worth it."
Not all analysts share Wells Fargo's concerns about Target's short-term financial consequences. Neil Saunders, managing director at GlobalData, said the retailer should clearly assert its rights as a capitalist enterprise.
"Ultimately, it should hold the view that it has the right to sell whatever it wants, and customers can choose to accept it or leave it," he said via email. "If it tries to sit on the fence, it will end up pleasing no one. As the culture wars intensify, it should have anticipated some of these issues in advance."
"If you scare Target—a brand that has always been a leader—what are all other companies supposed to think? This pattern will create cowardice across all companies that have ever ventured into this space."
Bob Witeck
President of Witeck Communications
In the long run, the retailer risks losing the support of a powerful consumer group, said the coalition organizations pressuring Target. American consumers are twice as willing to buy from brands that demonstrate a commitment to LGBTQ+ rights, and those aged 18 to 34 are more than five times as likely to want to work for companies that support these rights. Additionally, according to investment firm LGBT Capital, the community's global spending power was approximately $3.9 trillion in 2019, with U.S. household wealth alone nearing $6.9 trillion.
"Gay people—broadly the LGBTQ+ community—matter. When a business embarks on a path of engagement, inclusion, and support for the community, it aligns with its goals as a for-profit enterprise because they want to grow their business," Witeck said. "They want to expand their customer base. If they retreat from that, they're signaling that they're looking backward, toward the past. If you scare Target—a brand that has always been a leader—what are all other companies supposed to think? This pattern will create cowardice across all companies that have ever ventured into this space."