Shark Tank’s Kevin O’Leary says Target’s marketing decision to launch its Pride collection was a ‘huge mistake’ as the retail giant lost $10 billion in market value in the space of 10 days .
The entrepreneur spoke on the controversy during a FoxNews segment on Sunday after Target’s stock fell to its lowest trading value in a year and lost $10 billion in just 10 days.
O’Leary said companies like Target and Bud Light – “cannot be partisan in any way” when selling consumer goods and services. Bud Light sales have plummeted since April after teaming up with transgender activist Dylan Mulvaney.
Target and Anheuser-Busch have lost about $28 billion in market value as of Friday, FOX Business reported.
Shark Tank’s Kevin O’Leary says Target’s marketing decision to launch its Pride collection was a ‘huge mistake’ as the retail giant lost $10 billion in market value in the space of 10 days .
Prior to the controversy, Target shares were trading at $160.96, giving the retailer a market valuation of around $74.3 billion. By the time the New York Stock Exchange (NYSE) closed on Friday, the blue chip stock was trading at $138.93, marking a loss of $10.1 billion.
O’Leary first pointed to Bud Light, which continued to struggle with backlash over its marketing decision to team up with a transgender activist.
“When Bud came along, I can’t believe the boardrooms didn’t realize this decimation of market capitalization…Budweiser was America’s beer,” he said. “It took decades to build this brand and they blew it up in 30 hours.”
He added that there’s a reason big business doesn’t take a stand on a controversial issue.
“Let me give you an example,” O’Leary told Fox News. “Have you ever heard a CEO representing a company talk about abortion?” Never. Because it’s a problem that will never be solved. It’s a personal matter, it’s a family matter, it’s a religious matter.
It’s always partisan. You don’t touch it. Same with politics, same with gender identity. Everyone has a personal opinion on this. When you’re actually involved in a fight like that, you lose 50% of your constituency.
O’Leary accused social media of being what he described as a “giant polling system” and that “when something goes viral it can be a good thing, but it’s mostly negative, and that decimates these marks very quickly”.
O’Leary said companies like Target and Bud Light – “cannot be partisan in any way” when selling consumer goods and services
The latest merchandising controversy comes as a growing number of moderate shoppers have taken issue with Target’s new “Pride Collection,” particularly with items in its children’s section.
Outraged by LGBTQ-friendly slogans such as “Trans people will always exist!”, “gay” and “Live Laugh Lesbian”, they accused the retailer of grooming
‘Fixer Upper’ stars Chip and Joanna Gaines, who have a home and kitchen line with Target, received backlash for not speaking out about the controversy, but O’Leary warned them to “stay in outside of that”.
He said the couple “can’t win” getting involved in this fight and predicted their sales would drop 30% if they did.
“That’s what would happen,” he added. “They wouldn’t ultimately have the margins they need to stay on the shelf, they would get kicked out.” You stay out of it.
The latest merchandising controversy comes as a growing number of moderate shoppers have taken issue with Target’s new “Pride Collection,” particularly with items in its children’s section.
Outraged by LGBTQ-friendly slogans such as “Trans people will always exist!” ”, “gay” and “Live Laugh Lesbian”, they accused the retailer of grooming themselves – as several employees in more rural areas like the South would have sought. to hide and tone down these new sections in apparent shame.
The retail giant has also sparked a backlash after launching a new clothing line to celebrate Pride Month in June, which includes a tag advertising a “user-friendly construction” and “extra crotch” coverage. The design is made to help conceal a person’s private parts.
Criticism has also been leveled at the company after it believed the ‘tuck friendly’ clothing was also aimed at children, but a company spokesperson told The Associated Press that swimwear is only offered. only in adult sizes.
The swimsuits, which appear in sections set up for Pride Month in June, include a tag that advertises “user-friendly construction” and “extra inseam” coverage. The design is designed to help conceal a person’s private parts
The “tuck-friendly” swimsuit is sold online for $40 in the adult section. Target has been asked to clarify claims that the item is also available for children
Target HQ staff members reportedly held an “emergency” meeting last week to avoid what a Target insider reportedly told Fox Brass colloquially referred to as the “Bud Light situation.”
An insider revealed that the company made the emergency decision at the last minute, in direct response to threats staff had received in recent weeks over the new screens.
In a statement last week, Target – led by CEO Brian Cornell – said the company had removed some items it had received complaints about, saying they “are at the center of the most divisive behavior”.
“Since the introduction of this year’s collection, we have experienced threats affecting our team members’ sense of safety and well-being at work,” the company said in its statement.
“Given these volatile circumstances, we are making adjustments to our plans, including removing elements that have been at the center of the most significant confrontational behaviors.”
The company did not specify which items were removed from the shelves. As of Sunday, many of the swimsuits, onesies and t-shirts that sparked outrage remain available online.
This was after a series of angry mothers took to Twitter and TikTok to complain. In recent weeks, the retail giant has been vilified by families – especially mothers – for putting transgender clothes, books and greeting cards in its stores.
Target has supported Pride – celebrated throughout June – every year since 2013, with this year’s collection being the latest to prove polarizing.
In 2014, Target publicly endorsed marriage equality, and the following year announced it was ending its policy of dividing certain products, like toys, by gender.
Target also introduced a gender-neutral line for kids, and in April 2016 — amid a national discussion about bathroom access — announced that transgender people were free to use any bathroom they wanted.
A backlash ensued, and Target spent $20 million in August 2016 to add a private bathroom to each of its stores.