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Target Can't Back Down From Transgender Policy

Article Date - 04/29/2016

Target's recent foray into the politics of restrooms, transgender rights and social mores is an interesting case study in which a publicly traded, customer-focused company takes a stand for reasons that are difficult to see on the surface.

Below that surface are Millennials.

Target's recently stated its inclusive policy that says an individual is welcome to use the restroom of the gender to which they most identify. It has immediately made Target, the Target of a boycott. There are now close to 1 million signatures on a petition to have the policy revoked comments here and elsewhere are piling up from those who plan to take their business elsewhere.

But Target isn't backing down and likely won't. This isn't about gender, trans or other, it's about positioning a brand with its core customer and future employees.

And those are increasingly Millennials.

Millennials as a generation have been much maligned, but business leaders dismiss them at their own peril. While their shopping habits are still a work in progress, there are some shared characteristics that are fully formed. The most important of which are social values, and inclusive policies play a big role here.

Millennials will comprise nearly 75% of the workforce by 2025 and according to a report from Deloitte, they prioritize inclusion.

They believe inclusion is the support for a collaborative environment that values open participation from individuals with different ideas and perspectives and the unique factors that contribute to their personalities and behaviors, which is in stark contrast to prior generations who traditionally consider it from the perspectives of representation and assimilation.

And millennials define inclusion differently than previous generations. Non-millennials consider inclusion to reflect equity and integration, but today's youth consider the impact it has on culture, connections and teamwork. They even consider how inclusion impacts business, according to Deloitte.

Ask a roomful of 20 somethings about this issue and you'll likely find a sea of confused faces.

I did, and this debate is much ado about nothing, according to them.

So why is this an issue that Target felt the need to take a position on?

I don't work for Target and Target did not respond to my request for a comment. But Target spokeswoman Molly Snyder told other media outlets:

We certainly respect that there are a wide variety of perspectives and opinions. As a company that firmly stands behind what it means to offer our team an inclusive place to work and our guests an inclusive place to shop, we continue to believe that this is the right thing for Target.

It's the right thing for Target because its shoppers skew younger. The brand already has a loyal millennial following, one that is the envy of its competition. Embracing their values is critical to win them as customers and as employees.

It's why Target came out in support of gay marriage and why it's active in getting women into leadership roles. It's why the company has re-evaluated how it presents children's products by gender, removing some signage in the toys and home departments and introducing a line of gender neutral furnishings.

Millennials are the generation of workers developing the technology that powers retail today. The ones who create the algorithms and apps, who are populating the innovation labs that Target and others have set up to identify, build and implement new ideas.

Being the employer they value is critical to Target's success.

Target has not backed down, and for them to do so now would likely be even more damaging to their brand. Standing up for what they believe in and embracing these values is part of its mission and they can't turn back now.