Target Faces Backlash Over DEI Rollbacks

Customers at Target express concern over the company's DEI changes.

News Summary

Target is facing significant backlash for scaling back its diversity, equity, and inclusion (DEI) efforts, leading to a decrease in both online and foot traffic. On February 28, 2025, the retailer reported a 9% drop in online visitors and a notable decline in app and foot traffic, while competitors like Costco saw increases due to stronger DEI commitments. Civil rights leaders are rallying for a boycott in response to Target’s decision, demanding accountability and urging consumers to support Black-owned businesses.

Target Faces Backlash Over DEI Rollbacks

It looks like Target is facing a tough time lately as backlash over its decision to scale back its diversity, equity, and inclusion (DEI) efforts has led to a noticeable dip in both online and foot traffic. On February 28, 2025, the retailer saw its online traffic plummet by an eye-popping 9%, dropping from 5.2 million to 4.7 million visitors compared to just two weeks prior on February 14.

This decline didn’t stop at online numbers; Target’s app user traffic also took a hit, decreasing by 14%—from 4.2 million to 3.5 million on the same day. To make matters worse, the company experienced an 11% drop in foot traffic compared to the average visits on prior Fridays. This marked the largest drop among its competitors, which included an 8.7% decrease for McDonald’s and a 5.8% decrease for Walmart.

Competitors Stepping Up

In stark contrast, Costco enjoyed a surge in its fortunes. On that same day, Costco’s online traffic increased by 22%, lifting from 2.4 million to 2.9 million. Interestingly, its app visits also rose by 3% while it managed to achieve a 2.2% increase in foot traffic throughout February. This boost in numbers comes after Costco reinforced its strong DEI commitments.

Meanwhile, big players like Walmart and Amazon also saw declines in web traffic, with Walmart down 5% and Amazon facing a 2% drop, although its app traffic managed to tick up by 1%.

The Boycott Movement

“Target Fast” campaign, advocates are encouraging a 40-day boycott that aligns with the upcoming Lenten season beginning March 5. The goal is to rally at least 100,000 participants, urging them to redirect their spending toward Black-owned businesses.

Participants receive a digital business directory showcasing Black-owned businesses and a special 40-day prayer journal designed for those involved in the boycott. Rev. Jamal Bryant has been particularly vocal, calling Target’s rollbacks a betrayal of its commitments to the Black community, especially after the company previously pledged $2 billion to support Black businesses.

What’s Next for Target?

The upcoming full-year 2024 earnings report for Target may give a clearer picture of how these boycotts are affecting the bottom line, though the full impact might not show until the next quarter. Analysts have expressed concern that Target’s move away from its DEI commitments could threaten its strong consumer trust, especially among core demographics like Black consumers and millennials. Given that Target’s reputation has apparently suffered since early 2023 due to previous backlash related to diversity initiatives, this might become a significant hurdle for the retailer.

Interestingly, broader conversations around corporate responsibility are playing into this drama, as seen with companies like BlackRock, which is also facing scrutiny over its own DEI commitments. Reports suggest that these nationwide boycotts are part of a larger movement criticizing the rollback of DEI efforts by various corporations.

Looking Ahead

Many consumers involved in the boycott are striving to raise awareness about the economic implications of withdrawing support from companies that do not uphold DEI initiatives. The historical context surrounding this campaign draws parallels to successful boycotts during the civil rights movement, adding weight to its purpose. However, economists note that while awareness-raising boycotts can impact reputational effects, grassroots efforts often struggle to create substantial changes in sales without widespread support.

Only time will tell how this unfolding situation will impact Target’s future, but one thing is for sure: consumers are not afraid to make their voices heard and demand accountability from the brands they choose to engage with.