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Backlash Over Pride Celebrations Stirs Controversy
for Retailers

September 7, 2023 for SAGE Publications: SAGE Business Cases Originals

 

Below is my contribution to a case study designed for graduate and post-graduate students to get a sense of how business can be effected by diverse, multidisciplinary issues. Editors later added teaching notes for professors, learning outcomes for school cirricula and abstracts for student clarity. 

The Issue

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Pride month merchandise and marketing efforts have always been met with some disapproval from conservatives. Experts agree, however, that things have gotten much worse in the past year as Republican-led states have introduced and passed dozens of pieces of legislation aimed at restricting rights for transgender minors and adults. Companies and marketers have noticed this political shift has led to the radicalization of some conservatives. Disapproval over inclusive marketing, particularly during Pride month, developed from snide comments on social media to violent harrassment of company employees. 

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Bud Light’s social media campaign with transgender influencer Dylan Mulvaney seemed to be the turning point. After conservatives called for a boycott, sales from a four-week period in April and May dropped more than 23%. In some southern markets, like Jacksonville and New Orleans, sales went down 40%. 

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On the other side of the political spectrum, Starbucks ruffled feathers as 3,500 workers at 150 locations went on strike over rumors that managers would not allow any locations to put up displays or decor in support of Pride month. The company said these rumors were false, that they support LGBTQ community, and this was merely a ploy for union activists to get employees to create unions at their local Starbucks locations. 

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Then there was Target. After some videos went viral on TikTok over Target’s decision to sell gender-affirming clothing, as well as LGBTQ-friendly childrens book and greeting cards, the retail giant soon became the focus of conservative outrage. In response, Target moved Pride displays from the front of several stores into the back and removed items altogether from their Pride collections. The company cited concerns over worker safety and well-being as a small group of customers in some areas harassed and berated Target employees while throwing merchandise on the ground. 

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GLAAD, an advocacy group that helps companies be more inclusive and respond to criticisms of Pride month campaigns, called on Target to return all merchandise pulled from their stores and website in order to reaffirm their commitment to the LGBTQ community. Target failed to respond, leading to resentment from liberal consumers. 

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Outdoor apparel company, The North Face, also received backlash after teaming up with drag queen Pattie Gonia to encourage the LGBTQ community to “come out” into the wilderness. Conservatives called for a boycott of the brand, but unlike Target, North Face defended its position and went ahead with their Summer of Pride campaign, rainbow apparel, and Pride events.

 

Why Is It News?

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Those in the American LGBTQ community and their allies represent a group with significant buying power that is continually growing (financially, politically, and socially). This is a large reason why Pride merchandise/advertising campaigns have become something of a necessity for businesses in the past several years.

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Experts agree that although they have featured LGBTQ marketing in the past, the backlash to Bud Light’s campaign was so severe this year because their main customer base is more conservative and has been radicalized in the past year. Meanwhile, brands like Nike can include Pride marketing with little to no repercussions because their customer base is younger and more progressive. 

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Despite Bud Light losing revenue during that time, the common talking point of “go woke, go broke” really doesn’t hold any water. Research suggests that for the small number of consumers who avoid “woke” brands, more consumers will naturally gravitate towards them for sticking to their ideals. A global study revealed that customers are four to six times more likely to buy from and support a brand that champions causes like Pride, diversity, and sustainability. Time and again, consumers have used their collective buying power to support progressive campaigns from large corporations.

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The retail industry as a whole has seen a rise in aggressive behavior from customers since the start of the pandemic. This, paired with a contentious political debate over transgender and gay rights, has many companies concerned over repercussions from continued support for progressive causes. The overall sentiment of seeing LGBTQ representation in ads and on TV, however, has not changed. GLAAD research says that 75% of people not in the LGBTQ community are comfortable seeing those from the community represented in marketing. 

 

Critics of Target claim the chain could have protected worker safety without alienating already marginalized people or compromising the company’s commitment to support the LGBTQ community. Experts warn that caving to violent conservative pressure will only embolden extremists in the future, leading to more worker harassment and more attacks on inclusive displays by other companies. 

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