Target announced Tuesday that transgender customers at its stores can use the bathrooms that match their gender identity.

"Inclusivity is a core belief at Target. It's something we celebrate. We stand for equality and equity, and strive to make our guests and team members feel accepted, respected and welcomed in our stores and workplaces every day," the company said on a blog post.

The policy extends to employees and shoppers and covers restrooms and dressing rooms.

"Everyone deserves to feel like they belong. And you'll always be accepted, respected and welcomed at Target," the company added.

The statement comes amid the increasing controversy over proposals related to transgender rights. State legislatures across the country, most recently in North Carolina and Mississippi, have adopted proposals that would require individuals to use the bathroom that corresponds with their sex at birth as opposed to their gender identity. The measures have been sharply criticized by civil rights groups who said they lead to discrimination against LGBT people.

Target is based in Minneapolis. The state's governor, Mark Dayton, recently directed state employees to stop all non-essential business travel to North Carolina in response to its new law.