Target’s DEI Troubles Deepen
By Darius Spearman (africanelements)
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Leadership Change at Target
Target is facing a significant leadership change amidst ongoing challenges. Brian Cornell, who has served as Target’s CEO for 11 years, will step down on February 1, 2026. Michael Fiddelke, the current Chief Operating Officer, is set to take over the top leadership role. This transition comes at a critical time for the retail giant, which has been grappling with declining sales and widespread boycotts (TheStreet.com).
Cornell’s departure was anticipated by many, especially given the company’s continuous sales downturn. Target has reported a sales drop for three consecutive quarters, and its shares fell 10% even before the announcement of Cornell’s resignation. The company’s struggles in 2025 are not new; they represent a continuation of problems that began earlier, particularly with its shift away from progressive branding.
DEI Rollback Backfires
Target’s decision to roll back its Diversity, Equity, and Inclusion (DEI) initiatives has ignited significant backlash and led to widespread boycotts. In January 2025, Target announced it would discontinue several key DEI programs. These initiatives included advancing Black employees’ careers, providing anti-racism training, and promoting Black-owned businesses and sourcing from Black suppliers (TheStreet.com). Moreover, Target withdrew its participation in the Human Rights Campaign survey, which monitors corporate LGBTQ+ policies, and ended its three-year DEI goals (TheStreet.com).
This abrupt reversal sparked outrage among consumers and quickly led to boycotts. Target’s DEI rollback is part of a broader trend among Fortune 500 companies that are responding to conservative pressure and legal challenges against diversity efforts (CNN Business). It is worth noting that Target’s initial commitment to DEI programs followed the tragic killing of George Floyd in Minneapolis in 2020, which is Target’s home city (CNN Business). The daughters of one of Target’s co-founders, Anne and Lucy Dayton, expressed their deep dismay, calling the DEI walkback “a betrayal.”
Understanding DEI Initiatives
Diversity, Equity, and Inclusion (DEI) initiatives in a corporate setting typically involve a range of programs and policies. These efforts aim to create a workplace and customer base that reflects a broad spectrum of backgrounds and identities. This includes increasing representation of underrepresented groups, ensuring fair treatment and equal opportunities, and fostering an environment where all individuals feel valued and respected.
Target was once a leading advocate for DEI programs in the business world, especially after the murder of George Floyd in Minneapolis in 2020 (CNN Business). The company had also spent years building a public reputation as a progressive employer on LGBTQ+ issues (CNN Business). Target had previously pledged over $2 billion to Black-owned businesses as part of its DEI commitments (The Bay State Banner). However, Target’s recent actions, such as shuttering key DEI initiatives like its REACH program and rebranding Supplier Diversity, are seen by many as a retreat under political pressure (The Bay State Banner).
Impact on Customer Traffic and Sales
The boycotts and the DEI rollback have significantly impacted Target’s customer traffic and sales. During the first quarter of 2025, the number of customers visiting Target stores declined by 4.8% year-over-year (TheStreet.com). Comparable store sales also decreased by 3.8% in the first quarter, although comparable digital sales did see an increase of 4.7% (TheStreet.com).
Early data from analytics firms Placer.ai and Numerator confirm a decline in consumer support. Black and Hispanic households reduced their visits at the highest rates (Insight News). On a national blackout day, Target experienced an 11% decline in store traffic compared to average Friday visits (Insight News). Since the DEI reversal on January 24, Target’s overall foot traffic has fallen every week (Insight News). Furthermore, Target’s “Trust & Like Score” from reputation analytics firm Caliber has fallen significantly following its DEI shift (Retail Brew). Target’s net sales were down 2.8% year-over-year in the first full quarter after backtracking on DEI (Retail Brew).
Target’s Financial Performance After DEI Rollback (Q1 2025)
Target reported a 3.8% drop in comparable sales and a 2.8% year-over-year revenue decline, totaling $23.8 billion in the first quarter of 2025 (The Bay State Banner). The company missed analysts’ sales expectations by nearly half a billion dollars (Fortune). In-store foot traffic dipped 5.7%, the number of transactions both in-store and online dropped 2.4%, and the amount customers spent decreased 1.4% (Fortune). Target now expects total sales to fall in the low single digits this fiscal year, reversing its earlier projection of 1% growth (Fortune).
Boycott Organizers and Their Significance
Various groups, including Black clergy and local Black Lives Matter groups have organized the boycotts against Target. The involvement of these groups is particularly significant due to their historical and ongoing roles in advocating for civil rights and social justice. These organizations often represent and mobilize large segments of the Black community, a demographic that has historically been a target of corporate diversity initiatives and a significant consumer base. Their organized boycotts can exert considerable economic pressure and draw widespread public attention to issues of corporate accountability and social responsibility.
Black clergy and social media quickly organized a boycott backlash following Target’s DEI shift (Retail Brew). During a boycott announcement, some speakers cut up their Target charge cards and encouraged shopping at Costco, which reaffirmed its commitment to DEI (Fortune). Representative Yvette D. Clarke, chair of the Congressional Black Caucus (CBC), criticized Target’s “unconscionable decision” to end DEI efforts, stating that Target’s explanations “fell woefully short” (Retail Brew). Target CEO Brian Cornell has met with civil rights leaders like Al Sharpton to address the DEI backlash (Retail Brew). Target has also reaffirmed its pledge to spend $2 billion with Black-owned businesses, a commitment initially made in 2021, and introduced a new strategy called “Belonging at the Bullseye” (CNN Business).
Target’s Trust & Like Score Decline
The “Trust & Like Score” by Caliber is a reputation analytics metric that assesses how strongly consumers agree or disagree with two statements: “Target is a company I trust” and “Target is a company I like” (Retail Brew). This score is normalized to a 0-100 scale, providing a quantifiable measure of consumer perception and sentiment towards the company (Retail Brew). A significant decline in this score indicates a loss of consumer confidence and affection, which directly impacts sales and brand loyalty.
Target's Trust & Like Score Decline
The “Trust & Like Score” by Caliber assesses consumer sentiment based on agreement with statements like “Target is a company I trust” and “Target is a company I like.” This score, normalized to a 0-100 scale, has seen a significant decline following Target's DEI shift, indicating a loss of consumer confidence and affection.
Beyond DEI: Strategic Errors and External Factors
Beyond consumer sentiment, Target’s sales woes are also attributed to strategic errors and external factors. For instance, Target overbought merchandise in 2022, which led to a surplus of unsold products. This created inventory challenges and likely contributed to the need for deeper discounts, impacting profit margins.
The company’s reliance on imported goods makes it particularly vulnerable to erratic tariff policies, especially under President Donald Trump’s administration. Additionally, Target’s core sales traditionally came from nonessential goods. Consumers are buying less of these items due to rising prices and stagnant wages, which further exacerbates the sales decline. The incoming CEO, Michael Fiddelke, plans to focus on a “Fun 101” initiative, which aims to fill stores with trendier electronics and home goods. However, some critics believe this strategy doubles down on nonessential items at a time when consumers are becoming more frugal, potentially worsening Target’s problems.
Target’s Sales Decline: Key Contributing Factors
Target’s response to the backlash has included reaffirming its $2 billion pledge to Black-owned businesses and introducing the “Belonging at the Bullseye” strategy. However, the specifics of this new strategy and how it differs from previous DEI efforts remain unclear. Target’s CEO has met with civil rights leader Al Sharpton to address the DEI backlash (Retail Brew). The CEO also issued a letter to Target employees following the DEI pullback (Retail Brew).
- DEI Rollback & Boycotts
- Overbought Merchandise in 2022
- Vulnerability to Erratic Tariff Policies
- Consumer Shift from Nonessential Goods
- Incoming CEO's “Fun 101” Initiative
The Congressional Black Caucus stated that explanations offered by Target’s leadership “fell woefully short of what our communities deserve and of the values of inclusion that Target once touted” (Retail Brew). In a notable development, Target was removed from the Twin Cities Pride festival in its hometown of Minneapolis, ending a years-long sponsorship partnership (Retail Brew). This indicates that the company’s actions have had tangible consequences beyond just sales figures.
ABOUT THE AUTHOR
Darius Spearman has been a professor of Black Studies at San Diego City College since 2007. He is the author of several books, including Between The Color Lines: A History of African Americans on the California Frontier Through 1890. You can visit Darius online at africanelements.org.
