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William Flaig


NextImg:Target Effort to Play Politics Is a Case Study in Corporate Confusion and Collapse

Target Effort to Play Politics Is a Case Study in Corporate Confusion and Collapse

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
AP Photo/Julia Demaree Nikhinson

For years, conservative investors have warned corporate America that playing politics is a losing game. Target has become the poster child and cautionary tale for exactly why. In a little over two years, Target managed to alienate conservatives, disappoint liberals, and torch billions in shareholder value while its competitors thrived. The story of Target is not just a cautionary tale; it is proof that “go woke, go broke” is more than a slogan.

It began in spring 2023, when Target rolled out a line of so-called “tuck-friendly” swimwear as part of its Pride collection. Isn’t the first rule of business something about knowing who your customer is at all times? 

Their marketing was tone-deaf and offensive to millions of Americans who simply wanted to shop for household goods without having gender ideology pushed in their face. Target’s leadership, blinded by progressive orthodoxy, failed to anticipate the backlash. Conservatives across the country responded with boycotts, making clear that they would not reward a company that prioritized politics over profits.

The fallout was immediate. Target’s reputation cratered, its stores saw protests, and its stock price took a hit. Instead of learning the right lesson, which was to stay out of politics, Target stumbled into an even worse trap. In an attempt to calm the storm, Target scaled back its Pride promotion the following year. Predictably, this angered liberals who accused the company of caving to conservatives. Instead of rebuilding trust with its core customers, Target managed to alienate both sides of the political spectrum. Once companies wade into politics, it’s tough to withdraw and backpeddle. 

Then came 2024. Target announced it was scaling back its diversity, equity, and inclusion programs, cutting initiatives that supported Black employees, minority-owned businesses, and LGBTQ+ inclusion. Once again, the left lashed out. Progressive groups called for boycotts. The company had succeeded in one of the rarest and worst feats in corporate strategy: it had no friends left. Conservatives did not return, liberals turned away, and Target’s leadership was stuck in the middle of a culture war it had no business starting.

Meanwhile, the numbers do not lie. Since May 2023, Target stock has fallen 27 percent. Over the same period, Walmart stock soared 102 percent and the retail sector as a whole climbed 47 percent. Target did not just underperform, it woefully underperformed , while its competitors thrived. That is not bad luck. That is the direct result of failed leadership and a failed strategy.

Target’s board recently did what boards do when all else fails: they fired the CEO. Leadership changes are the ultimate admission of failure and what activists are seeking. The hope is always that a fresh face can reset the culture, rebuild trust with customers, and revive growth. But there is a problem. Target replaced him with an insider. That may not be the radical change this company needs. Because what Target really needs is not a new ad campaign, or a tweaked policy, or a half-hearted pivot back to the middle. Target needs to remember what business it is in and that their focus should be on maximizing shareholder returns at all times. Selling affordable goods to American families, not running a social experiment.

Conservatives did not boycott Target because of minor disagreements. They boycotted because Target crossed a red line by forcing ideology onto children and families. Parents do not want to explain to their kids what “tuck-friendly” means while shopping for groceries. Grandparents do not want to navigate aisles filled with political statements instead of products. Everyday Americans do not want to feel lectured when they spend their hard-earned dollars.

Target could have avoided this fate if it had listened. We have been warning corporate America for years: stick to business and stay out of politics. The silent majority of consumers do not want companies pushing left-wing causes, and they certainly do not want companies flip-flopping in a desperate attempt to appease both sides. That only proves the point that leadership never had a clear vision in the first place.

Today, Target stands as a textbook case of what not to do. This wasn’t always inevitable. The company initially believed it could quietly court the fringe left, a move that made management feel good but lacked real business justification without alienating anyone. In other words, they tried to have their cake and eat it too, flying under the radar. And for a while, that seemed like a reasonable gamble. After all, the political right had historically been slow to anger and even slower to sustain it.

But this time was different. Target’s choices did alienate the right, and when the backlash came, it was fierce and lasting. In response, the company backpedaled, scaling down or reversing some of its positions, which only managed to frustrate the left without winning back the right. The result? A brand with no real constituency trying to be everything to everyone, and ending up nothing to anyone.

Today, its stock is down, its reputation is tarnished, and its future is uncertain. The winners are competitors like Walmart who never lost sight of the basics: value, convenience, and serving customers instead of lecturing them.

The lesson is simple. Business and politics do not mix. Target ignored that truth, and t’s shareholders  paid the price. Other companies should take note. If you do not want to end up like Target, leave the politics to the politicians and get back to business.

William Flaig is the Founder and CEO of The American Conservatives Values ETF (ACVF). Learn more about investconservative.com 

Editor’s Note: The Democrat Party has never been less popular as voters reject its globalist agenda.

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