Target is one of the best examples out there of the the new phrase: “Go woke, go broke.” And after what they pulled recently, they are in for a lot more than declining sales and boycotts.
Big-box retailer Target kicked off the summer with an all-out display of affection for Pride Month. Sales tanked after fans of the store rejected the emphasis on LGBT merchandise.
Moms and dads across the country boycotted the store, lambasted the company on social media, and vowed to never shop there again. Target lost billions of dollars in corporate valuation which did not sit well with shareholders. When the company loses that much money that quickly the stock loses value along with shareholders’ investments.
One shareholder is holding Target executives accountable for his losses and wants his money back. From The Daily Wire:
A Target investor has sued the retail chain, saying that it misled investors over risks related to its LGBT marketing and diversity, equity, and inclusion policies.
Most major corporations today proudly promote their LGBT Pride Month, Environmental, Social and Governance (ESG), and Diversity, Equity, and Inclusion (DEI) policies and activities. They all want to be more “inclusive” and draw in like-minded customers to make a buck.
The problem is that this combination of woke policies angers the company’s core customers who are working families with long-standing American values. When this group gets offended, they walk and take their money elsewhere with many never returning.
That’s where the lawsuit on behalf of investor Brian Craig of Florida comes into play. His lawsuit charges Target with costing shareholders billions of dollars. Reports show Target valuation dropped by $14 billion after customer backlash. And for this betrayal Craig wants his money back.
Craig owns over 200 Target shares and says that the corporation’s board of directors and management misled investors about risk management over social and political messaging.
Target was clear and proud in its messaging – executive leadership fully supported Pride Month with displays that included for sale “tuck-friendly” and “extra crotch coverage” female swimsuits. These aren’t your average, everyday items that Target core customers seek to buy.
Attorneys for Craig aren’t playing around with this lawsuit. They want the company and its leadership held accountable for losses caused by bowing to leftist ideology. The lawsuit charges that Target’s board and management may have violated federal law overseeing publicly traded companies. These companies must provide clear information about risk management.
Just looking at this situation from a marketing perspective, Target leadership and management likely should have been more aware of what could happen by launching their Pride Month merchandise displays. The Bud Light controversy had already exploded and any company following that debacle into Pride Month should have reevaluated their own merchandising.
Target decided to play the rainbow card to start the summer sale season and they got burned from customers. This lawsuit may add insult to injury before this mess ends.
- Big box retailer gets slammed with blockbuster investor lawsuit.
- Pride Month merchandise starts marketing fire that burns stock value.
- “Inclusive” policies are targeted in lawsuit that seeks big-time damages.
Source: The Daily Wire