The month of July saw higher-than-expected sales in the world of retail except for Target, which saw the opposite trend. Target’s second quarterly sales report shows that sales dropped for the first time in six years.
This sales dip followed the release of merchandise celebrating Pride Month back in June. A tuck-friendly bathing suits for male-to-female transgender individuals caused controversy and led to a boycott.
Some media headlines also suggested the reason for the sales drop with headlines such as “Pride Month backlash hurt Target’s sales” and “Target sales drop after ‘negative reaction’ to Pride Month collection.”
Target CEO Brian Cornell said the boycott likely contributed to the change in sales, but believes things are starting to stabilize.
Cornell says Target continue to celebrate Pride, however it will make changes for future Pride Month collections.
“We’ll continue to celebrate Pride and other heritage moments, which are just one part of our commitment to support a diverse team and guests,” Cornell said. “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.”
Despite Target’s dip, retail sales overall never dipped from May to July, and spending saw a 2.3% year-over-year increase, with Walmart seeing sales up 6%. Consumer spending as a whole was up in the month of July and hit a record high in the second quarter.
Numbers from the Target quarterly sales report:
- Target sales dropped 5.4% in the second quarter.
- Target online sales fell 10.5%.
- Total revenue fell 5% year-over-year.
- Stock price retail fell almost 20%.
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