Usually, the controversies around retailers’ Pride Month collections involve whether the endless parade of rainbow-themed clothing and marketing are too patronising, or just tacky. This year, the conversation has taken a darker turn.

Last week, Target said it would pull some items and move Pride displays away from the front of stores in certain markets. The retailer said it did so after employees were threatened and displays knocked over by customers incensed over trans-inclusive merchandise, including a “tuck-friendly swimsuit” conservative media falsely reported came in children’s sizes.

The incident is part of a wider backlash against brands that have embraced pro-LGBTQ messaging in their marketing and merchandise. In April, Bud Light sales dropped after the brand worked with trans influencer Dylan Mulvaney. Several states have passed or are considering laws restricting drag performances and medical care for trans individuals. Internationally, progress on LGBTQ rights has seen reversals in China and other countries.

The rewards for engaging with LGBTQ customers still outweigh the risks for most brands in the US and Europe. Rainbow-themed underwear and donations to mainstream nonprofits rarely raise eyebrows even among conservative activists these days (whether they’re actually helping LGBTQ communities or just pandering to sell merch is a separate question). Many brands welcome the free press that comes with getting called out for supporting a progressive cause; last week, Swatch Group CEO Nick Hayek mocked raids on its stores in Malaysia that saw authorities seize rainbow-coloured watches. Others simply ignore the firestorm; Maybelline was also targeted by boycott calls after working with Mulvaney in April, but it and parent L’Oréal seem to have emerged none the worse for wear.

For the most part, marketing ahead of Pride Month, which starts June 1, is proceeding as usual this year. US and UK brands have introduced 27 percent fewer themed items this year compared with the same period in 2022, according to Edited. But that’s because more brands, including Bombas and Abercrombie & Fitch, are adopting a “Pride Year-Round” approach, the analytics firm said.

The decisions to yield by Target and Bud Light indicate a new strategic calculation, however. The intensity of the anti-trans response clearly caught these companies off guard. Target’s safety concerns aren’t just spin: retail workers didn’t volunteer to be on the front lines of the culture war, though training and protections for employees who deal with unruly customers can help. Target has also been down this road before, having been boycotted in 2016 for speaking out against North Carolina legislation that required trans people to use the bathroom corresponding to the gender they were assigned at birth.

Still, caving to anti-trans activists is unlikely to prove the right move, on moral or commercial grounds. Brands increasingly find success appealing to niche groups of customers rather than chasing a mass market that may not exist anymore. Target knows this; it released over 2,000 Pride-themed items this year. There are always some eye rolls, but going all-in on Pride has built goodwill among LGBTQ customers and, conservative activists aside, consumers generally. Some of that connection was eroded by last week. By trying to please both sides, Target and other retailers will end up pleasing neither.

What Else to Watch for This Week

Monday

Memorial Day (US)

Tuesday

The Business of Beauty Global Forum begins at Stanly Ranch in Napa Valley, California. Join us from anywhere in the world by registering for the global livestream.

Wednesday

Day Two of the The Business of Beauty Global Forum

Capri, Nordstrom report earnings

Thursday

Pride Month begins

US Treasury deadline to raise the debt limit

PVH, Victoria’s Secret, Lululemon, Macy’s, Dr Martens report earnings

Eurozone reports May inflation data

Friday

US reports May unemployment data

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