Targay Getting Pummeled by Boycott? September 29, 2016Posted by Tantumblogo in asshatery, Basics, disaster, error, foolishness, General Catholic, It's all about the $$$, persecution, rank stupidity, scandals, secularism, self-serving, sexual depravity, Society.
That’s the implication of the data below from The American Thinker, which shows that Target’s sales have slid much farther than their competition’s, and that their market cap has taken a serious tumble. I frequently read or hear that boycotts don’t really work, but could this be an exception, or is this sudden collapse at Targay simply coincidental?
In the wake of its five-month-long bathroom policy, Target (TGT) Corporation continues to implode.
Within a month after the misguided policy, the company’s market cap had already declined by $9 billion compared to where it should have been had Target kept its pre-April 19 correlation with its primary competitors, Walmart (WMT) and Costco (COST).
By late May, the market cap hit reached $10.5 billion. As of the second week of June, the loss was $11 billion.
Second-quarter earnings data are now out, showing that Target’s earnings plummeted nearly 10%, with projected lower sales estimates for the remainder of 2016. Net sales declined more than 7% from the same period year over year.
Corporate executives are leaving in droves. Just 10% of the most senior executives in place two years ago remain with the company, including two major losses during the past month.
Had Target’s market cap continued to follow close pace with Walmart, as it had done in the months before the bathroom policy was implemented, it would have increased 1% compared to its value on April 19 of this year. Instead, Target’s market cap is now down 23.3% over this time frame. [That’s the kind of thing that gets a CEO fired, usually within a few quarters. I’d say if things don’t improve markedly by year’s end, the CEO who instituted this disastrous transgender policy will be gone. But will his replacement have the will to withstand the firestorm of criticism that will almost certainly attend its reversal?]
This adds up to a $12.2-billion market cap decline that is likely to be directly attributable to the failed bathroom policy.
The American Family Association’s boycott of Target, which has collected 1.42 million signatures, appears to have driven much – if not nearly all – of this drop. In response, Target recently announced it would spend $20 million to install single-stall locking bathrooms for those customers who are concerned over its “inclusive” washroom policy.
Whether its the boycott or not, Targay is hurting. Now they are caught in a quandary of their own making, where no matter what they do they are sure to experience a fiery backlash. Continue with the policy, continue offending many customers, and sales continue to tank. Reverse the policy and the extremely powerful pro-perversion lobby and their media allies with absolutely pillory them. It’s refreshing to see the kind of cheap moral posturing and virtue signaling – which in reality forms a powerful form of persecution against Christians – far too many businesses are engaged in can come with a real cost. Target thought they could sow the wind, now they get to reap the whirlwind.
Maybe we should boycott the NCAA and Atlantic Coast Conference next.