Target suggests it will take a more muted approach to Pride Month

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Target (TGT) plans to fine-tune its merchandising approach to heritage months such as Pride Month after some consumer unrest weighed on sales in the second quarter.

"Listening to the guest feedback and evolving is part of what we do every day," Target chief growth officer Christina Hennington said on a media call on the company's second quarter earnings. "Some of the changes we'll make to our heritage month collections going forward will look like this: We'll have a slightly more focused assortment and will evolve our store and digital presentations, and we're going to reconsider the mix of our own national brands with our external partners. And so ... you'll see us celebrate these heritage moments, but with these modifications."

Target CEO Brian Cornell told Yahoo Finance on the call that consumers view Target as their "happy place," and the retailer will do what it can to lean into that expectation.

Reuters reported that conservative news outlets and some Republican politicians branded the Pride Month assortment by transgender designer Erik Carnell, which appeared in stores in May, as "Satanic." These entities made claims that Target was marketing the products to children.

The company's decision in late May to remove some of the LGBTQ-themed merchandise after customer backlash fueled by the conservative messaging triggered even more global backlash across social media.

Target execs on the media call said there were incidents of shoppers threatening staff and destroying Pride-themed merchandise and displays. The uproar hurt second quarter sales, Target said.

Cornell added on the call that once Target addressed the assortment, sales trends gradually began to improve.

"Looking forward, we'll continue to celebrate Pride and other heritage moments, which are just one part of our commitment to support diverse teams and guests," Cornell explained. "However, as we navigate an ever-changing operating and social environment, we're applying what we learned to ensure we're staying close to our guests and their expectations of Target."

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