Shark Tank’s Kevin O’Leary said Target’s marketing decision to launch its Pride collection was a “massive mistake” as the retail giant dropped $10 billion in market value in the space of 10 days.
The entrepreneur weighed in on the controversy during a Fox news segment on Sunday after Target’s stock fell to its lowest trading value in a year, losing $10 billion in just the space of 10 days.
O’Leary said companies like Target and Bud Light “cannot be biased in any way” in the sale of consumer goods and services. Bud Light sales have plummeted since April after collaborating with transgender activist Dylan Mulvaney.
Target and Anheuser-Busch lost about $28 billion in market value as of Friday, FOX Business reported.
Shark Tank’s Kevin O’Leary said Target’s marketing decision to launch its Pride collection was a “massive mistake” as the retail giant dropped $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 value of approximately $74.3 billion. By the time the New York Stock Exchange (NYSE) closed on Friday, blue-chip stock was trading at $138.93 — a loss of $10.1 billion
O’Leary first pointed to Bud Light, which continued to struggle with the backlash from its marketing decision to partner with a transgender activist.
“When Bud happened, I can’t believe boards didn’t wake up to that market cap decimation…Budweiser was the American beer,” he said. “It took decades to build that 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. “Do you ever hear a CEO representing a company talk about abortion? Never. Because that’s a problem that will never be solved. It’s a personal issue, it’s a family issue, it’s a religious issue.
It is forever partisan. You don’t touch it. Same with politics, same with gender identity. Everyone has a personal opinion about it. If you actually get involved in such a fight, you will lose 50 percent of your supporters.’
O’Leary blamed social media for what he described as a “massive polling system” and that “when something goes viral it can be a good thing, but most of the time it’s negative, and it decimated these brands very quickly.”
O’Leary said companies like Target and Bud Light “cannot be biased in any way” in the sale of consumer goods and services
The latest merchandising controversy comes as an increasing number of moderate shoppers have objected to Target’s new “Pride Collection,” particularly featuring items in the kids’ section
Outraged by LGBTQ-friendly slogans such as “Trans People Will Always Exist!”, “Gay” and “Live Laugh Lesbian,” they have accused the retailer of grooming
“Fixer Upper” stars Chip and Joanna Gaines, who have a home and kitchen line with Target, have received some backlash for not speaking out about the controversy, but O’Leary warned them to “stay out of it.”
He said the couple “can’t win” by getting involved in this fight and predicted them sales would drop 30 percent if they did.
“That’s what would happen,” he added. “They wouldn’t end up having the margins they need to stay on the shelf, they’d be kicked out. You keep out of it.’
The latest merchandising controversy comes as an increasing number of moderate shoppers have taken issue with Target’s new “Pride Collection,” particularly featuring items in the kids’ section.
Outraged by LGBTQ-friendly slogans such as “Trans People Will Always Exist!”, “Gay” and “Live Laugh Lesbian,” they have accused the retailer of grooming — as several staffers in more rural areas like the South have reportedly sought to curb it. to hide and tone down new sections in apparent embarrassment.
The retail giant also caused backlash after releasing a new clothing line to celebrate Pride month in June, with a label advertising “pleat-friendly construction” and “extra crotch” coverage. The design is made to hide a person’s genitals.
The company was also criticized after the “crease-friendly” clothing was thought to be for kids as well, but a company spokesperson told the Associated Press that the swimsuits are only offered in adult sizes.
The swimsuits, which appear in sections set up for Pride month in June, include a label advertising the “crease-friendly construction” and “extra crotch” coverage. The design is made to hide a person’s genitals
The “pleat-friendly” swimsuit sells online for $40 in the adult section. Target has been asked to clarify that the item is also available for children
Target HQ staffers reportedly held an “emergency meeting” last week to prevent what a Target insider told Fox Brass had popularly referred to as a “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 about the new displays.
In a statement last week, Target — led by CEO Brian Cornell — announced that the company had withdrawn a number of items it had received complaints about, citing that “were at the core of the most confrontational behavior.”
“Since the introduction of this year’s collection, we have faced threats that affect our team members’ sense of safety and well-being at work,” the company said in a statement.
“Given these unstable conditions, we are adjusting our plans, including removing items that were central to the most significant confrontational behavior.”
The company did not specify which items were pulled from its shelves. As of Sunday, many of the bathing suits, rompers and t-shirts that sparked outrage are still available online.
It was after a series of angry moms took to Twitter and TikTok to complain. In recent weeks, the retail giant has been taunted by families – especially mothers – for throwing transgender clothing, books and greeting cards into its stores
Target has been supporting Pride – celebrated throughout the month of June – every year since 2013, with this year’s collection only the latest to prove polarizing.
In 2014, Target publicly endorsed marriage equality and the following year announced it was ending their policy of dividing certain products, such as toys, by gender.
Target also introduced a gender-neutral line for kids, announcing in April 2016 — amid a nationwide debate over bathroom access — that transgender people were free to use any bathroom they wanted.
A backlash ensued, and Target spent $20 million in August 2016 to add private bathrooms to each of its stores.