Former Target executive explains new sales dip
Former Target Vice Chairman Gerald Storch and business consultant told Fox News Digital, 'There's no doubt that Target misstep took a misstep with Pride Month.'
EXCLUSIVE – A former executive who worked at Target said that upwards of 20% of the losses from Target's recent sales slump were likely due to its controversial Pride displays.
Target experienced a sales downturn in the second quarter, it was reported Monday. Comparable sales slipped 5.4% while the $24.8 billion in total revenue was 4.9% lower than last year.
"Your job is to meet the needs of your customers, not to pick a fight with anybody," former Target Vice Chairman Gerald Storch and business consultant told Fox News Digital. "There's no doubt that Target took a misstep with Pride Month."
In addition to other circumstances affecting the retail giant, such as competition from Walmart, Storch said the third most impactful stressor was the issues stemming from the Pride collection.
Former Target executive speaks with Fox News Digital about 5.4% sales drop. (Fox News Digital)
"It's certainly impacted them, there's no doubt about it. But I would say it's probably 20% of the [5% decline]. Not the main part of it."
Last month, Target confirmed "adjustments" to the Pride merchandising plans were underway after Fox News Digital learned it rolled back displays at some of its locations. Backlash to merchandise, including "tuck friendly" swimsuits for transgender children, forced the company to move items from the front of their locations.
"They put a few products in there that really upset people and offended them," the Storch Advisers business consultant said.
Storch said brands need to be cognizant of the fine line between supporting all communities and giving the appearance of advocating for political causes.
"We live in a very polarized society right now. And it's very important for someone who's a retailer who serves everyone… that you do no harm," he said.
Conservatives blasted Target for selling Pride swimsuits boasting "tuck-friendly construction" and "extra crotch coverage," presumably to accommodate male genitalia, even if they are made in an otherwise female style. (Brian Flood/Fox News)
"It's not a question of right or wrong or good or bad, it's saying, who's my customer, and how do I meet the needs of my customer?… They don't want to deal with politics."
The consultant said he did not believe Target intentionally upset consumers.
Negative reaction to Target’s Pride collection had somewhat of a material impact, Target CEO Brian Cornell appeared to suggest on a call with reporters.
"As we navigate an ever-changing operating and social environment, we are applying what we learned," he added.
Many Target locations across the country feature massive June Pride month displays on an annual basis. (Brian Flood/Fox News)
Over the past few months, Target's market value has fallen to $57.7 billion from $74 billion.
Fox News Digital first reported in May that some southern Target stores were forced by the corporation to move LGBTQ Pride merchandise away from the front of their locations after customer "outrage" to avoid a "Bud Light situation." The company then was hit with backlash from the left as well for being seen as capitulating to a right-wing political campaign.
The merchandise included female-style swimsuits that can be used to "tuck" male genitalia, products labeled as "Thoughtfully fit on multiple body types and gender expressions," a "Gender Fluid" mug, a variety of adult clothing with slogans such as "Super Queer," party supplies, home decor, multiple books and a "Grow At Your Own Pace" saucer planter.
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Target didn't respond to a request for comment.
Fox News' Joe Toppe and Brian Flood contributed to this report.
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