What is going on with Target? Cancellation and pride merch controversy explained amid reported 10 billion loss

American retail giant Target is taking huge losses as it continues to face backlash for its pride-themed clothing, notably the collection including clothing for children. The Minneapolis-based company released its "PRIDE" capsule collection earlier in May 2023, which included clothing, footwear, decor items, pet toys, music, and books.

Every year during Pride Month, Target sells a collection dedicated to the cause. However, the corporation lost $10 billion in market valuation in the last ten days. It previously boasted a stock value of $160.96 for a share, but when it closed on Friday, May 26, 2023, its value had dropped to $138.93 a share.

The boycotts come amidst an anti-LGBTQ cultural trend in the USA, with many customers speaking out against brands remotely supporting the pride movement.

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Ted Cruz doubts backlash would be impactful as Target hits lowest stock price in three years

The company is headquartered in Minneapolis, Minnesota, and started as a discount department of Dayton's department store in 1962. Since then it has expanded operations to 1948 stores in the United States. It has been ranked 32 on Fortunes 500's list of the largest U.S. corporations by total revenue in 2022.

According to the New York Post, Target's blue-chip stocks have plummeted by 14% which translated to an estimated loss of $10 billion in valuation "to just $64 billion for Target.

The last time the brand saw a drop this big was back in 2022, when stocks equalized following a surge during the COVID pandemic and the subsequent lockdown.

Texas senator, Ted Cruz, on his podcast, Verdict with Ted Cruz, on Friday, May 26, stated that the boycott would not affect Target as much as BudLight and Anheuser Busch as it wasn't easy to "substitute." He added that the efforts to boycott the brand would die out soon as "historically, conservatives have typically been not very good at boycotts."

He compared the brand with Disney, which suffered a similar backlash for speaking agasint Florida's "Dont Say Gay" law that was introduced last year, but continues to remain a financial giant.

However, he spoke against the so-called "woke agenda" that corporate America is focusing on. He stated:

"That’s a good thing for those of us that would like companies just to get back to selling their damn products and keep their idiotic politics out of our lives."

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Following the backlash from certain customers, the Fortune 500 company was forced to move its pride section away from the front of the store in several Southern stores. Additionally, several displays were knocked over by protestors, many of whom confronted employees.

Recently, Target announced that it would remove items from its collection, but did not specify which ones.

According to CNN Business, campaigners against the collection have sent threats to the company's employees and damaged its products and displays. However, the CEO, Brian Cornell has defended its LGBTQ collection because it was “the right thing for society."