27 August 2016

Target Paying The Cost Over Its Bathroom Policy

Empty Target
The debilitating effect of the boycott against Target over its bathroom policy appears to be more costly than what the retailer initially thought.

The boycott started in April after Target announced that it would welcome transgender customers to use any bathroom or fitting room that matched their gender identity. They also thought that they can weather the immediate backlash, but they couldn't be more wrong.

Critics said the policy opened the door for sexual predators to victimize women and children inside the retailer's bathrooms, and more than 1.4 million people signed a pledge to stop shopping at Target unless it reversed the policy.

But Target didn't back down.

Now shopper traffic is declining tremendously for the first time in years, and the company is installing single-occupancy bathrooms in all of its stores to give critics of the policy more privacy. The new bathrooms, which already exist in a majority of Target stores, are costing Target US$ 20 million to install, Fortune reports.

The company revealed its traffic declines a few days ago when it reported second-quarter earnings.

Target's same-store transactions, which is how traffic is measured, fell 2.2 percent in the second quarter. Overall, sales fell 7.2 percent to US$ 16.2 billion.

"In the second quarter, our No. 1 challenge was traffic, which affected sales in all of our merchandise categories," Target CEO Brian Cornell said on a call with analysts.

Cathy Smith, the company's chief financial officer, added: "Traffic performance showed a meaningful change from prior trend. I want to pause and make it clear that we are not satisfied with our second-quarter traffic and sales performance."

In the past, the purchasing power of the conservatives were underestimated by radical leftists who thought they can easily manipulate everyone to further their own agenda.

Chick-fil-A, for example, faced a possible boycott in 2012 from LGBT after Dan Cathy, the son of Chick-fil-A's founder, S. Truett Cathy, set off a fury among gay-rights supporters when he told Baptist Press that the company was "guilty as charged" for backing "the biblical definition of a family."

Following Cathy's remarks, sales soared 14 percent in 2012 because conservatives troop to the fastfood chain in record numbers. It was also helped by reports detailing Chick-fil-A's many charitable donations to organizations opposed to same-sex marriage.