Shark Tank’s Kevin O’Leary said Target’s marketing decision to launch its Pride collection was a “huge mistake” as the retail giant lost $10 billion in market value in 10 days.
The entrepreneur addressed the controversy in a Fox News piece on Sunday, after Target stock fell to its lowest trading value in a year, losing $10 billion in 10 days.
O’Leary said companies like Target and Bud Light “must not be partial in any way” when selling consumer products and services. Bud Light sales have plummeted since April after it hooked up with transgender activist Dylan Mulvaney.
Target and Anheuser-Busch together lost about $28 billion in market value as of Friday, according to FOX Business.
Shark Tank’s Kevin O’Leary said Target’s marketing decision to launch its Pride collection was a “huge mistake” as the retail giant lost $10 billion in market value in 10 days
Before the controversy, Target shares were trading at $160.96, giving the retailer a market valuation of around $74.3 billion. When the New York Stock Exchange (NYSE) closed on Friday, the blue-chip stock was trading at $138.93 — a loss of $10.1 billion
O’Leary first pointed to Bud Light, which continues to deal with backlash over its marketing decision to team up with a transgender activist.
“When Bud happened, I can’t believe the boards were unaware of this market cap depletion… Budweiser was the American 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 companies don’t take a stand on a controversial issue.
“Let me give you an example,” O’Leary told Fox News. “Ever hear a CEO representing a company ever talk about abortion? Never. Because this is a problem that can never be solved. It’s a personal matter, it’s a family matter, it’s a religious matter.
It’s forever partisan. you don’t touch it Same goes for politics, same goes for gender identity. Everyone has a personal opinion about it. If you actually engage in a fight like that, you lose 50 percent of your electorate.”
O’Leary blamed social media for being a “huge polling system” and that “when something goes viral it can be a good thing, but most of the time it’s negative and it has decimated those brands very quickly.”
O’Leary said companies like Target and Bud Light “must not be partial in any way” when selling consumer products and services.
The recent merch controversy comes as more moderate shoppers have issues with Target’s new “Pride Collection,” particularly items in the kids’ section
They were outraged by LGBTQ-friendly slogans like “Trans people will always exist!”, “Gay” and “Live Laugh Lesbian” and accused the retailer of self-care
“Fixer Upper” stars Chip and Joanna Gaines, who have a home and kitchen line with Target, have received some backlash for not commenting on the controversy, but O’Leary warned them to “stay out of it.”
He said the pair could not win if they engaged in this fight and predicted their sales would drop 30 percent if they did.
“That would happen,” he added. “They eventually wouldn’t have the margins they needed to stay on the shelf and they would be kicked out. ‘Stay out of it.’
The recent merch controversy comes as more moderate shoppers have issues with Target’s new “Pride Collection,” particularly items in the kids’ section.
Outraged by LGBTQ-friendly slogans like “Trans people will always exist!”, “Gay” and “Live Laugh Lesbian,” they accused the retailer of self-care – as several employees in more rural areas like the South have reportedly tried to do to hide and tone down new sections out of apparent shame.
The retail giant also sparked backlash after it launched a new clothing line to mark Pride month in June that includes a label advertising “pocket-friendly construction” and “extra crotch coverage”. The design is designed to help hide a person’s intimate areas.
Criticism was also leveled at the company, as it was believed that the “Tuck Friendly” clothing was also suitable for children. However, a company spokesman told the Associated Press that the swimsuits would only be offered in adult sizes.
The swimsuits, which will appear in the sections set up for Pride month in June, will include a label touting the “tuck-in-friendly construction” and “extra crotch coverage”. The design is designed to help hide a person’s intimate areas
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
Employees at Target headquarters reportedly held an “emergency meeting” last week to avoid what a Target insider colloquially described to Fox Brass as a “bud light situation.”
An insider revealed that the company made the last-minute emergency decision in direct response to threats employees had received over the past few weeks over the new displays.
In a statement last week, Target — led by CEO Brian Cornell — announced that the company had retracted some issues it had received complaints about, stating that these “were at the heart of the most confrontational behavior.”
“Since the launch of this year’s collection, we have experienced threats that impact the sense of security and well-being of our team members 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 the focus of the most significant confrontational behavior.”
The company did not make which items were taken off the shelf. As of Sunday, many of the swimsuits, onesies and t-shirts that sparked outrage are still available online.
It comes after a number of angry moms took to Twitter and TikTok to complain. In recent weeks, the retail giant has been snubbed by families – particularly mothers – for selling transgender clothing, books and greeting cards in its stores
Target has supported Pride every year since 2013, which is celebrated throughout June, with only this year’s collection having a polarizing effect.
In 2014, Target publicly endorsed marriage equality and announced the following year that it was revoking its policy of sharing certain products, such as B. toys, would end by gender.
Target also introduced a gender-neutral line for children, and in April 2016 — amid a nationwide debate over toilet access — announced that transgender people would be free to use the restroom of their choice.
Backlash ensued, and Target spent $20 million in August 2016 to add a private bathroom to each of its stores.