The backlash to increased sales during Pride month has caused many businesses to cut their profit outlook for the upcoming year. Many shoppers have become increasingly aware of the financial support given to companies that promote and empower the LGBT community, and have chosen to stop spending in those stores to show their disapprobation. Companies that had originally anticipated high sales after Pride month have been forced to lower their profit projections.
For example, retail giant Target recently announced that they have lowered their profit outlook for 2023 due to customer backlash after the Pride month sales surge. This announcement comes only months after Target stocked its shelves with LGBT-themed merchandise in celebration of the event, which initially saw a significant increase in sales. However, the company received a wave of criticism from customers who felt that their purchase of Pride-themed items supported the LGBT movement in a way that they did not approve of. As a result, Target has revealed that their profit outlook has now been adjusted accordingly.
The decrease in sales following the Pride month shopper backlash serves as an important reminder that companies should be aware of potentially controversial topics and monitor customer opinion before making decisions. While it may be beneficial to boost sales in the short-term, businesses should always consider the long-term repercussions of such actions.