Oh yes, many people beat up on Target for this bit of nonsense. Ourselves included. They deserved it, and they couldn't deny it was happening. But they tried to insist at the time that it didn't affect their business.
That seemed implausible at the time, and now even they aren't trying to pretend any longer. You simply can't announce a policy that is guaranteed to upset at least half your customer base, and then expect to suffer no conquences for it. So when Target brashly announced last summer that it would allow everyone to use the bathroom corrersponding to their "identity" (whatever that means), they were kidding themselves in thinking this would go well for them.