Target Faces Boycott Over Shift in DEI Policies Amid Economic Struggles

Target is encountering a 40-day consumer boycott that kicks off on Wednesday due to a perceived retreat from its diversity, equity, and inclusion (DEI) policies. Rev. Jamal Bryant, a well-known megachurch pastor from the Atlanta area, who initiated the boycott, explained to CNN, “We’re urging people to stop supporting Target because they have abandoned our community.”

Timed to begin with Lent, the boycott emerges just over a month after Target adjusted its DEI initiatives, amid challenging economic conditions that include numerous tariffs. On January 24, shortly after Donald Trump’s inauguration, Target revealed it would eliminate hiring targets for minority employees, dismantle its executive committee on racial justice, and alter other diversity efforts. Despite these changes, Target announced its new strategy, “Belonging at the Bullseye,” introduced last year, emphasizing its ongoing commitment to fostering a sense of belonging among employees, customers, and communities. The company also highlighted the importance of adapting to the changing external environment.

Target is among several Fortune 500 companies retreating from DEI efforts in response to conservative court rulings, activism, and pressures from right-wing legal entities, not to mention the Trump administration’s threats regarding what it defines as “illegal DEI.” Businesses are grappling with how to advance diversity initiatives while avoiding conservative legal scrutiny.

Nonetheless, Target has encountered especially harsh backlash from DEI advocates in comparison to its peers. Online protests erupted, and Anne and Lucy Dayton, daughters of a Target co-founder, branded the company’s actions as a “betrayal.” The retail giant faces greater pressure than companies like Walmart, John Deere, or Tractor Supply because it initially went further in its DEI initiatives and appeals to a more progressive customer base.

After George Floyd’s murder in Minneapolis in 2020, Target emerged as a leader in DEI promotion within the corporate sector. It also established a reputation as a progressive employer on LGBTQ matters over several years. “Black people spend upwards of $12 million a day, so we anticipated some loyalty, decency, and camaraderie,” stated Bryant.

Melissa Butler, CEO of The Lip Bar, a major Black-owned makeup brand sold at Target, expressed her disappointment with Target’s pullback on DEI via TikTok. She also raised concerns that the boycott might negatively impact Black-owned businesses. “We don’t want minority businesses to suffer or be adversely affected,” she emphasized.

Target declined to comment on the boycott to CNN but stated that it remains committed to inclusivity, offering a diverse array of products and services, including items from Black and minority-owned vendors.

However, there are already indications that the backlash over Target’s DEI changes is affecting the company. According to Placer.ai, which monitors store visits using phone data, customer traffic across Target has slowed notably more than rivals like Walmart and Costco in recent weeks. These challenges could also result from weather conditions, economic factors, and other variables, Placer.ai advised.

Joseph Feldman, an analyst with Telsey Advisory Group, noted a “clear drop in traffic” from late January into mid-February following Target’s decision to retreat from DEI positions in a recent client memo.

This boycott arrives as Target also grapples with tariff impacts and a decline in consumer spending. Their sales dipped in February, and they anticipate only a modest 1% sales growth this year. Speaking to CNBC, Target CEO Brian Cornell indicated tariffs on Mexico might cause price increases on various produce items imminently. Target reported that “tariff uncertainty” could affect profits this quarter. Cornell remarked that Target substantially depends on Mexican produce during the winter, adding, “These are categories where we’ll strive to maintain pricing, but consumers may soon notice price increases.”