In the past 10 days, retail giant Target has experienced a $10 billion loss in market valuation due to the ongoing backlash surrounding its Pride-themed clothing line for children.
The company's stock value, which stood at $160.96 per share a week ago Wednesday, dropped to $138.93 per share on Friday, representing a nearly 14% decline. This plunge in value brings Target's market valuation down to $64.2 billion, its lowest in nearly three years.
The retailer's current predicament echoes a similar situation in 2022 when the company's stocks experienced a significant drop after an exceptional surge during the COVID-19 pandemic. Target has been caught in the crossfire of America's culture wars over gender, with recent protests leading to the relocation of the Pride section in some Southern stores and the removal of certain items from the collection.
While comparisons have been drawn to conservative boycotts against brands like Bud Light, Texas Senator Ted Cruz suggests that the impact on Target may be more substantial since viable alternatives are scarce. Cruz draws a parallel with Disney, which faced backlash in the past but remained a financial powerhouse due to its unique offerings.
Target's stock value decline of more than 22% in the last 10 days reflects the significant challenges the company currently faces.