Target's Shift from High-Profile Support to Silence: The Brand Dilemma Behind Pride Month Merchandise Controversy

After years of high-profile Pride Month celebrations every June, Target in 2023 could have launched one of the boldest LGBTQ+ community celebrations in mass retail. However, amid a wave of backlash against its Pride Month merchandise—including attacks at some stores—Pride Month at Target began with what many saw as a timid posture.

Before the commemorative month had even officially begun, the retailer had removed or downplayed its collection from some stores, and has since not responded to calls to express full support as it has in the past.

"At this moment, it is crucial that Target defends 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 at the forefront of brands that have shown sincere, authentic support for the LGBTQ+ community through outreach and policies. Target was recognized in 2022 by the Executive Leadership Council for outstanding commitment to DEI. Now is the time to prove that recognition is well-deserved."

Target's Pride Month history

This Pride Month, Target followed a process many advocates view as key to corporate solidarity, especially after the Black Lives Matter protests. The retailer collaborated with independent LGBTQ+ designers and advocacy groups to launch clothing, swimwear, footwear, accessories, toys, and slogan merchandise with uplifting, supportive, and sometimes provocative messages. In-store signage was bold and large, with displays placed prominently at store entrances.

The collection was fitting for a company with a rich history of allyship, not only in its merchandise but also in 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 diminished by the retailer removing it from some stores. Previously, people affected by escalating homophobia and stigmatization of the LGBTQ+ community disrupted displays and clashed with staff. Agitators on social media and right-wing networks—including members of Congress—fueled boycott efforts.

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 later, Target had not responded.

GLSEN, a coalition member founded by a group of teachers, develops anti-bullying programs and provides other support for LGBTQ+ students in kindergarten through twelfth grade, and has partnered with Target for over a decade. Executive Director Melanie Willingham-Jaggers said via email that Target can continue selling its Pride Month merchandise while ensuring employee safety.

"Headquarters staff should work with store management and employees to develop security plans to ensure that hardworking employees can safely perform their duties," she said.

Silence

After issuing an initial statement on May 24, the retailer has remained silent. The statement explained that the company "made adjustments to our plans, including removing the core items that triggered the most confrontational behavior," and said "our focus now is on continuing our commitment to the LGBTQIA+ community, standing with them during Pride Month and year-round."

Target also did not respond to multiple requests for comment for this article.

Target's refusal to reaffirm its commitment to gay pride is widely seen as reflecting concerns about facing a sales and stock decline similar to Bud Light. Bud Light faced intense social media backlash and boycotts after a brief collaboration with a transgender influencer. In fact, in a June 1 research note, Wells Fargo analysts said Target's Pride Month collection "generated significant negative in-store and social media attention," adding uncertainty to its already pressured near-term outlook and potentially hurting store traffic.

"Following the [AB InBev] incident, investors are highly sensitive to this issue," the analysts said.

The retailer continues to sell its Pride Month collection online and in 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 standing with 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 a departure from its previously stated values, suggesting hypocrisy, and could invite rejection from all sides.

"You not only lose those who are angry with you and walk into your stores, 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 adhere 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 program at NYU Stern School of Business. In this case, this requires both ensuring store employee safety and reaffirming commitment to LGBTQ+ rights, both of which can be achieved with some effort.

Moreover, attacks on LGBTQ+ rights 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 basic freedoms have been introduced this year.

"My overall stance is that you push through the skid 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 follow through. The right approach is to consult with affected stakeholders who have expertise and are impacted by these issues. Consult with store employees, and also consult with 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 @target as planned this week because they caved to this big baby pic.twitter.com/g4saehKN2y

— Ronni the Thrilla from Manila (@LoveFromRonni) May 25, 2023

Wharton School marketing professor Barbara Kahn 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 must consider employee safety," she said via email. "If this is an important issue for Target—and given its years of commitment, I believe it is—I think retreating sends the wrong signal. Even if increased security raises short-term costs, the long-term reputational benefits are worth it."

Not all analysts are as concerned as Wells Fargo about Target's short-term financial consequences. Neil Saunders, managing director at GlobalData, said the retailer should assert its rights as a capitalist enterprise.

"Ultimately, it should hold the view that it has the right to sell whatever merchandise it wants, and customers can choose to accept or reject it," he said via email. "If it tries to sit on the fence, it will end up pleasing no one. Amid intense culture wars, it should have anticipated some of these issues in advance."

---

"If you scare Target, the leader, what are all other companies supposed to think? This pattern will create cowardice among all businesses involved."

Bob Witeck

President, Witeck Communications

---

In the long run, the retailer risks losing support from a powerful consumer group, said the coalition organizations pressuring Target. American consumers are twice as likely to purchase from brands committed to LGBTQ+ rights, and people 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 purchasing power was approximately $3.9 trillion in 2019, with household wealth in the U.S. 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 are signaling that they are looking backward, toward the past. If you scare Target, the leader, what are all other companies supposed to think? This pattern will create cowardice among all businesses involved."