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July 3, 2023
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FORMER TARGET EXEC REVEALS THE ‘ONE ITEM’ THAT SPARKED CONSUMER FIRESTORM

By
Agustin Hays, Fox News


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June 4, 2023 10:02am
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ORIGINALLY PUBLISHED BY:


 * LGBTQ advocate scolds Target’s ‘rainbow capitalism’: 'In this just for the
   money'
 * Detransitioned Navy SEAL warns parents about gender surgery for minors
 * Pro-life pregnancy centers sue NJ over alert alleging they engage in
   'deceptive practices'

Target has seen a significant drop in its market value as the retail giant faces
a consumer firestorm over the displaying of pride merchandise in stores around
the nation. 

This controversy follows a boycott against Bud Light due to their decision to
market products with transgender social media influencer Dylan Mulvaney. 

Former Target Vice Chairman Gerald Storch joined “Fox & Friends Weekend” and
revealed the one item that “made the difference”  against the competition and
sparked the backlash. 

He explained that many retailers carry pride merchandise, “you know, the plates
that had different colors in it. Fine. You show the rainbow, you know, a
gingerbread house, whatever you are, that’s all you know. Who cares? Everybody
carries that stuff.”

Storch targeted one item from the store’s pride collection that set it apart
from its competition and ignited the consumer firestorm. 

“I’ve never seen a case where one item, that tuck swimsuit, that’s really what
made the difference versus the competitors. That’s where the big mistake [was]
made,” said the former Target executive. 

Target faced backlash after releasing a tuck-friendly swimsuit.FOX News

The former executive shared an example of how he handled controversy with Babies
“R” Us. 

“We had a contest where the first baby of the year would get $20,000. You know,
people were up in arms because guess what, the first baby the year was born to
an undocumented immigrant and they didn’t have a tax ID or anything, and the
people are, ‘oh, God, you can’t give it to them. You have to give it to them.
Figure out a way.’ He continued, “You know what we did, we gave it to two babies
and we put out a giant press release. We love all babies.” 

“At the end of the day, if you embrace and you show that to people and you know,
I hear you every morning, you know this, too. That’s how you get a problem, is
you have to address it as a real problem and show love for people and it works,”
he added. 

Former Target Vice Chairman Gerald Storch said the swimsuit was “where the big
mistake [was] made.”Getty Images

“Now going out of the problem, you have to show love. I know that sounds kind of
funny, but, you know, forgiveness and love, that’s part of America and that’s
what you have to do.”

Storch noted that Target experienced economic trouble as well.

“Target stock has certainly been performing poorly off 11% year to date. So
that’s not good, and certainly, this boycott of the whole issue here isn’t
helping. It’s very distracting to have that going on in the business. But there
are more fundamental concerns with that, with the environment, with the consumer
and with the business here,” he noted. 

Target has seen a significant drop in its market value after a consumer
firestorm over pride merchandise.Getty Images

The company’s market value has taken a tumble since mid-May with a decline of
over $12 billion dollars. 

“Target’s decline in stock, — actually began on May 18th.” He explained, “that’s
the day Walmart reported seven percent gain in comp store sales on the prior
day. Target had reported flat sales, year flat at Target, up seven at Wal-Mart.
There’s no way that comparison looks good.” 

“The consumer is feeling very stressed, very stressed by the environment, by
inflation, and Target is known as the upscale discounter. So it’s not good to be
the upscale discounter at a time when the consumer doesn’t have a lot of money
to spend. So they’re migrating more to Wal-Mart, and that’s a huge problem.”

Storch explained that many retailers carry pride merchandise.Getty Images A
Pride Month display is set up inside a Target.Getty Images

“While there’s no doubt the boycott is part of the problem, if you read the
reports about Target during this period and the analysts keep in mind related to
the investors, who are the ones who are buying things about the stock or in this
case probably selling picks amount of stock. They’re more concerned with the
fundamental business issues.”  

568
What do you think? Post a comment.

Storch noted that Target’s investors are watching “very, very carefully” and
want to know the impact on sales.  

“You know, they [Target] certainly didn’t handle this well, either going in or
trying to deal with it on the way out. But I think over time, this is not going
to be a big issue for them,” he said. 




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 * 6/4/23

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