Missed Target Because Target Missed

Earlier this week, Target reported that its sales last quarter fell 7% compared to the same quarter last year.  This was below the estimate by analysts for revenues.  At the same time, Target announced that it was spending twenty million dollars to put single occupancy bathrooms in place in all of its stores.  Are these stories connected?  There is, as you may recall, supposedly a boycott of Target by people who object to its announced policy that people can choose to use either the men's or ladies' bathroom depending on their gender identity.  The sponsors of the boycott claim to have gotten 1.4 million people to sign in support of their movement.  These sponsors say that the decline in Target's sales is, at least in part, due to their efforts.  Target does not attribute the sales decline to the boycott, but the company is spending twenty million dollars in an effort to satisfy those conducting the boycott.

Most likely, Target is not sure how much of their sales problems are the result of the boycott, but the company is taking no chances.  I don't think we are going to see any other large retailers rushing to announce bathroom policies equivalent to the one at Target.