Target stores are being sued by Florida. Why DEI is the reason
Florida's new attorney general James Uthmeier is going after Target for its Pride merchandise and displays, alleging in a class-action lawsuit filed Thursday that the national retailer "knowingly misled and defrauded" investors by concealing the risks of its "radical LGBTQ activism," according to a release.
Last year, Target's Pride Collection triggered backlash and boycotts from conservatives and a run of people posting videos of themselves knocking over displays and confronting employees before the company pulled some of the items, saying they did it to protect the safety of their staff.
The LGBTQ-themed merchandise included cheerful, affirmative statements on clothing, sandals, pins, mugs and glasses along with the most controversial item, "tuck-friendly" swimwear for trans women.
The lawsuit alleges that due to the backlash, Target's stock price plummeted $10 billion in market value in 10 days and $25 billion in shareholder value over six months, saying it was the Minneapolis-based retailer's "longest losing streak in 23 years."
'Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida's first responders and teachers," Uthmeier said. "My office will stridently pursue corporate reform so that companies get back to the business of doing business — not offensive political theatre. We appreciate America First Legal's assistance in the fight to keep Florida's investments safe.'
Target's share price is currently down more than 50% from its peak in November 2021, Reuters reported.
In an earnings call in August 2023, Target executives admitted that the backlash to its Pride line was a 'signal for us to pause, adapt and learn,' but Neil Saunders, managing director for retail at analytics company GlobalData, told the Washington Post that rising inflation was also an issue and the company's sales were "on a downward slope long before Pride became an issue."
Uthmeier and private attorneys filed the 163-page lawsuit in federal court in Fort Myers on behalf of the State Board of Administration, the agency that manages Florida's massive pension fund. The lawsuit is one of at least three similar cases against Target in Florida, including one a Florida ruled in December could go forward.
The Minneapolis-based retailer has said in court papers that it repeatedly warned investors about the risk of consumer boycotts from its social and environmental initiatives.
Along with the lawsuits, Target is now facing backlash from a different direction.
The company announced it was ending its diversity, equity and inclusion (DEI) program in January just a few days after President Donald Trump issued executive orders eliminating DEI in the federal government. But after spending years building up its reputation as a leader in LGBTQ issues — publicly supporting gay marriage before it was legal, allowing transgender employees to choose their bathrooms — and minority hiring initiatives, many customers are feeling betrayed.
Even the daughters of one of the company's co-founders, Anne and Lucy Dayton, called the DEI rollback a "betrayal" in a letter to the Los Angeles Times. "By cowering, Target and others are undermining the very principles that have made their companies a success," they said.
Black faith leaders have called on their congregations to join a 40-day boycott of Target, and consumers on social media have been calling for a national boycott of specific retailers, including Target, and a complete consumer spending blackout on Feb. 28 to protest those retailers from backing up on their DEI programs.
Before the 2023 backlash, Target celebrated LGBTQ Pride Month every year for a decade with more than 2,000 products including colorful, affirmative clothing, books and furnishings for adults and children.
Some of 2023's items included:
Planters labeled "Grow at Your Own Pace"
A "Bodies Aren't Binary" scented candle
A "Queer All Year" wall calendar
Tote bags, pet hoodies, socks, rainbow sandals, welcome mats, gingerbread houses
"Cheers Queers" drinking glasses
Mugs that say, "Gender Fluid" and "Your Story Matters"
Greeting cards that say "Glad You Came Out" and "I'm Happy That You're Queer"
"Tuck-friendly" swimwear designed for trans women
Some of the products were labeled as "Thoughtfully fit on multiple body types and gender expressions."
The tuck-friendly swimwear received the most derision. Critics also incorrectly claimed that Target was selling Satanic-themed shirts and pins. The brand Abprellen sold such items, but they were never among the Abprellen items featured by Target.
This article originally appeared on Fort Myers News-Press: Target DEI, Pride lawsuit in Florida: Some customers feel betrayed
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