Target Takes BIG Hit for Conservative Contribution!

Posted on 06. Aug, 2010 by Sickly Cat in Business

Target Corp. has lost $1.3 billion in stock market capitalization since a public controversy arose over its $150,000 contribution to help a pro-business, anti-gay-marriage Republican gubernatorial candidate.

Shares in the Minneapolis-based discount retailer have declined 3.5 percent since the morning of July 27, when Target Chief Executive Gregg Steinhafel first defended the donation, prompting critics to call for a consumer boycott. Its shares were off 1.5 percent Tuesday, closing at $50.98.

Over the same six trading days, stock prices rose at Target’s largest rivals, Wal-Mart Stores Inc. and Costco Wholesale Corp. Broader market indexes also were up, including the Dow Jones industrial average and the S&P 500.

Target spokeswoman Jenn Glass said Tuesday that the shifting stock price reflects “too many factors that we can’t attribute it to just one thing.” Some analysts have also downplayed any impact from the political donation. On Thursday, Target will release its July sales, offering the first clue of whether the controversy has affected sales.

Target’s $150,000 donation benefited Republican Tom Emmer, an opponent of same-sex marriage and civil unions, who is running for governor. Steinhafel said that Target hoped to improve Minnesota’s business climate and that Target’s longtime support of the gay and lesbian community remains “unwavering.”

But gay-advocacy groups are talking boycott, as are liberal groups who are targeting the company as a warning to other corporations. The Democratic group MoveOn.org last week launched a petition drive among its 5 million members.

“We are well over 200,000 signatures nationwide,” Ilyse Hogue, a group spokeswoman, said Tuesday. “Our Minnesota members will deliver all these signatures in person to Target headquarters, probably later this week.”

Source: TwinCities.com

Tags: Boycott, Conservatives, Gregg Steinhafel, MoveOn.org, Target