Target’s stock price has plummeted after over one million people boycotted the retailer over its transgendered bathroom stance.
The company’s stock dropped from $83.98 per share on April 19, when Target announced its new policy, to around $81.33 on April 28 when the petition hit one million signatures.
Target’s new policy allows “transgender team members and guests to use the restroom or fitting room facility that corresponds with their gender identity,” the retailer stated in a press release which sparked nationwide condemnation.
“Target’s policy is exactly how sexual predators get access to their victims, and with Target publicly boasting that men can enter women’s bathrooms, where do you think predators are going to go?” The petition drafted by the American Family Association states. “Clearly, Target’s dangerous new policy poses a danger to wives and daughters.”
“We think many customers will agree.”
It certainly appears so, but just how bad will Target’s bathroom policy hurt the company’s bottom line?
Given that the average Target customer spends $62 per trip, according to credit card records, and that the customer conservatively visits the retailer twice per month, a boycott of one million people will likely cost the retailer $1.5 billion annually and perhaps even more.
“We should also consider that most people who decide to move their business from Target to some other retailer will likely never sign a petition,” Mark West with the Patriot Postreported. “They’ll simply leave Target in disgust as they see a company that has abandoned common sense values.”
“So it’s not far fetched to conclude that at the end of the day, the total financial impact to Target will be $5-10 billion in lost revenue annually, approximately 10% of its annual sales.”
Written by Kit Daniels