Target announced on January 24, 2023, that it would eliminate its hiring, supplier recruitment, and promotion goals for women, racial minorities, LGBTQ+ individuals, veterans, and people with disabilities, a shift away from diversity, equity, and inclusion (DEI) policies. This decision has incited significant customer backlash and led to a boycott initiated by Rev. Jamal Bryant, an Atlanta-area megachurch pastor.
Boycott details and community response
The boycott, which began at the start of Lent, calls for participants to refrain from shopping at Target and to divest from the company by selling their personal stocks. The movement’s website emphasizes that this is “a fast for accountability. A fast for justice. A fast for a future where corporations do not bow to pressure at the expense of marginalized communities.” Rev. Bryant plans to meet with Target’s board after the boycott ends on April 17 to discuss next steps, though details about a potential second phase remain undisclosed.
Target’s decision to end its DEI initiatives comes amid a challenging economic landscape and financial pressures, including the impact of tariffs imposed by the Trump administration. The company reported soft sales in February and a 13% drop in stock price over the month. In 2017, approximately 60% of its store-label products were sourced from China, indicating reliance on international markets.
Target’s reevaluation of its DEI efforts has drawn sharper criticism compared to other Fortune 500 companies that have also reversed similar programs. The company faced particularly strong backlash because of its previously robust commitment to DEI, which included substantial donations to groups that promote Black empowerment and LGBTQ+ acceptance. Anne and Lucy Dayton, daughters of one of the company’s co-founders, labeled Target’s recent actions as a “betrayal.”
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Financial implications and consumer sentiment
Furthermore, customer visits to Target have declined significantly compared to competitors like Walmart and Costco. Recent data from Placer.ai indicates that visits to Target dropped the most among these retailers following the company’s decision to step back from DEI initiatives. Analyst Joseph Feldman from Telsey Advisory Group noted a clear decrease in traffic after the announcement in late January.
Target’s CEO, Brian Cornell, mentioned that the imposition of Trump’s tariffs on imports from Mexico could lead to higher prices on food items, including fruits and vegetables. The company is experiencing “tariff uncertainty,” projected to affect profits in the current quarter. Target has also acknowledged that sales growth would only reach around 1% this year.
In response to the criticism regarding the DEI rollback, a spokesperson for Target stated that the company remains committed to inclusivity and offers a variety of products from Black and minority-owned vendors. Melissa Butler, CEO of the Lip Bar, a Black-owned makeup brand sold at Target, expressed disappointment over the company’s actions, stating her concern that the boycott could negatively impact Black-owned businesses.
The ongoing backlash against Target aligns with broader trends affecting major brands that have reduced their commitments to DEI initiatives. A report from Collage Group disclosed that a third of consumers have stopped shopping at brands that cut DEI commitments, particularly affecting Black, Hispanic, and LGBTQ+ shoppers. Meanwhile, the Trump administration has faced lawsuits regarding its DEI directives, with courts issuing injunctions on parts of the executive order attacking DEI efforts.
Featured image credit: Target
