Target’s $20M Bathroom Compromise

After enduring months of controversy and seeing their bottom line take a hit, Target will be investing $20 million to add private bathrooms in their stores to better meet the needs of transgendered patrons. These bathrooms actually already exist in most U.S. stores. The move to formally enshrine the policy nationwide stems from the recent flare-up over Target’s announced decision to allow their customers to use the bathrooms that aligned with their gender identity (as opposed to their biological gender, in case of a conflict).

Target has noted that sales have not fallen as a result of the policy, but it is nonetheless working to add those new bathrooms. The move to allow transgendered patrons the ability to use the bathroom of their choice prompted conservative groups like the American Family Association to launch a boycott. The petition accompanying the said boycott reportedly has over a million signatures.

Some, like Columbia University business school retail studies professor Mark Cohen, have argued the decision to announce their policy was an unforced error on Target’s part.

“[CEO Brian Cornell] is demonstrating at best a lack of experience and at worst a lack of common sense and judgment,” Cohen said. “It’s OK for [Target] to be sensitive to this issue of gender and bathrooms — and they’re based in Minneapolis, so they have a history of being progressive. But this is an issue that has become a lightning rod. If this CEO had a scintilla of common sense, he would do what Walmart is doing, which is to wait this out and wait for the lawmakers to duke it out and decide.”

But others noted that Cornell is playing a longer, smarter game by taking a stance and investing in it.

“Some would advocate that brands keep their morals to themselves and focus exclusively on what their customers (all their customers) depend on them for — products and services,” retail futurist Doug Stephens noted. “Others see it differently and fully expect that brands take positions on social, political and moral issues that impact the rights and well-being of their staff and customers. I personally believe that the true character and value system of any organization is defined by what it’s willing to lose money over.”

It is hard to call which position is right. According to data from the Global Strategy Group, 80 percent of consumers believe corporations should take action on important issues. Then again, Target’s most recent earnings report indicates a lot of losses, Walmart’s a lot of gains. It seems that consumers want retailers to take a stand, so long as it agrees with the one consumers have already taken.