Is Target Being a Grinch This Holiday Season?

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Target to the Salvation Army: You're not welcome at Christmas dinner!
Or any other time of the year, for that matter. Since 2004, Target
TGT
has praised and supported The Salvation Army while simultaneously keeping its bell ringers from standing outside its doors. The company has reinforced its decision to provide customers with, as one Target spokesperson put it, “a distraction-free shopping environment.” Speaking to
Fox 4
in Fort Myers, FL, the spokesperson said, “We do not permit solicitation or petitioning at our stores regardless of the cause or issue being represented.” At the same time, Target continues to
brag on its website
about the difference it makes by “proudly” supporting The Salvation Army. That's about as logical as people who defend free speech only to complain whenever somebody says something offensive and/or controversial. Target is being a hypocrite, plain and simple. But as a corporation, should Target suffer for these actions? Is it wrong to be a backhanded Grinch?
Still a Giver
From St. Jude Children's Research Hospital and the American Red Cross to Feeding America and the United Way, Target is a fairly charitable company. While you might have doubts about Target's true intentions (ex: are the donations a marketing campaign in disguise?), the fact is that these charities are better off with Target's support than without. By supporting these charities, Target isn't merely giving them time or money – it's promoting their names, their brands, and their causes. This is extremely important to the current and long-term success of a charity. As long as Target supports them, customers will be exposed to these charities via Target.com, in-store displays, and the occasional sales paper.
Still Greedy?
Whether you agree or disagree with Target's decision, you need to ask yourself: are bell ringers really a distraction? Perhaps we should rephrase the question: are Target shoppers less likely to spend money in the store if a Salvation Army bell ringer is standing outside? You can be sure that's the question Target execs asked themselves before announcing the ban. At the end of the day, Target is a corporation, and no “distraction” is going to keep it from maximizing profits. But Target made this decision without asking its customers what they thought. When Mills Fleet Farm prevented bell ringers from standing outside of its stores, customers promptly complained. Their anger was heard loud and clear: yesterday afternoon, the retailer announced that bell ringers
are welcome to return
.
If You're Distracted, Shop Online
Instead of sending the message that Target doesn't have a heart (or, perhaps, a heart that is simply two sizes too small), the company should have told its “distracted” shoppers to shop online instead. Target wouldn't have had anything to lose by doing so; in fact, it might have actually improved its public image by making a statement of this magnitude. The benefits would have been huge:
  1. Every news organization in the country would have flocked to the story, providing Target with a ton of free publicity.
  2. By reaffirming its commitment to the Salvation Army, Target's public image would have risen above retailers that exclude bell ringers.
  3. Customers who prefer to shop at charitable companies would have been more likely to choose Target.
If You Really Are Distracted, Live Under a Rock
You can't escape the bell ringers. Whether at your local mall, grocery store, or in the heart of your favorite city, you will encounter at least one bell ringer this Christmas. And – oh no! – what will you do? I hope Target execs run away as fast as they can. After all, we wouldn't want a guy in a $2,000 suit to feel distracted. If he gets distracted, he might forget to lease a new Lexus
TM
during the automaker's holiday sale. He could forget to buy his wife something from Tiffany & Co.
TIF
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, leaving her with nothing but a lump of coal this Christmas. He might even neglect to surf the Web on his Apple
AAPL
iPhone, reducing the amount of data he uses, which would in turn lower his monthly cell phone bill. That couldn't be good for AT&T
T
. If we're not careful, the Salvation Army bell ringers could bring down this entire country, one corporate exec at a time. Thanks goodness Target is doing its part to prevent this from happening.
ACTION ITEMS:Bullish:
If you support Target's decision to shun the needy while simultaneously promoting goodwill, consider these trades:
  • According to MSNBC, Target is not alone in its decision to shun the Salvation Army.
  • In previous years, Best Buy BBY prevented bell ringers from soliciting shoppers.
  • Home Depot HD also jumped into the anti-Salvation Army fray.
  • As did Barnes & Noble BKS.
Bearish:
Those who prefer retailers that are entirely supportive of the Salvation Army could have a difficult road ahead, as more and more retailers are barring bell ringers. But there are a few online options that avoid the controversy altogether by not having any physical retail locations:
  • Amazon AMZN is one of the leading online options.
  • eBay EBAY is still a fairly strong brand.
Follow me @LouisBedigianNeither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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