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Shareholder Impact Of Target's $20M Bathroom Building Initiative

Summary

Target announced a $20 million initiative to build single-stall unisex restrooms in the remainder of its retail locations.

The announcement comes in response to complaints regarding its transgender-friendly bathroom policy.

Despite the initiative, Target's policy will likely negatively affect corporate performance and shareholder value.

The projected extent of the loss is 0.62% per share.

Target (NYSE:TGT) recently announced an initiative to spend $20 million building single-stall, lockable, unisex restrooms for the convenience of customers who are uncomfortable with the ramifications of the company's policy of transgender inclusion. Target already contains these type of restroom facilities in approximately 1,500 of its 1,797 stores.

Target's policy toward transgender inclusion states that employees and customers could use the restroom and fitting room that aligns with their gender identity. News of this initiative does not alter that stance. Back upon the company's formal announcement of the policy in April, The American Family Association ("AFA") responded with a petition - now containing 1.4 million signatures - to boycott Target's retail outlets from the standpoint of the security and privacy of women and children. Namely, restrooms that are effectively gender-neutral can open the loophole that a male customer with perverse intentions can indiscriminately enter the women's restroom consequence-free. To some degree, the effects of Target's policy will be felt financially despite the company's claims that it hasn't materially had an impact.

It's a move that has provoked annoyance out of many shareholders, who claim that the company is putting politics, political correctness, and the approval of a small minority ahead of shareholders' interests. Do shareholders have a right to gripe about this announcement? I would argue that the news is not supremely significant, but still certainly material to those invested in the company.

Some numbers…

Target claims...


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