A 40-day boycott against Target is set to kick off this Wednesday, sparked by the company’s recent shift away from diversity, equity, and inclusion (DEI) policies. Rev. Jamal Bryant, a prominent Atlanta megachurch pastor leading the boycott, expressed discontent over Target’s perceived abandonment of the community. Following alterations to its DEI programs in response to a challenging economic climate and tariff challenges, the retail giant now faces potential repercussions from dissatisfied consumers.
In a controversial move on January 24, shortly after Donald Trump assumed the presidency, Target announced the elimination of minority hiring goals and the disbandment of a racial justice-focused executive committee, among other modifications to its diversity initiatives. This shift in strategy, known as “Belonging at the Bullseye,” was presented as a means to foster inclusivity within the company and its surroundings. However, this decision has drawn criticism, especially from supporters of DEI values who see it as a step backward.
While numerous Fortune 500 companies have recalibrated their DEI approaches under various pressures, Target’s deviation has triggered a particularly vehement response. Online protests and public disapproval, including statements from prominent figures like Anne and Lucy Dayton, have underscored the backlash against the company. Unlike its competitors, Target had been at the forefront of DEI advocacy, particularly following the tragic death of George Floyd in Minneapolis, where the company is headquartered.
The boycott, fueled by disappointment over Target’s DEI policy changes, has raised concerns about potential negative impacts on Black-owned businesses like the Lip Bar, a prominent makeup brand carried by the retailer. Despite assertions of continued commitment to inclusivity from Target’s spokesperson, the company’s reputation and customer loyalty are now in question.
Early indicators suggest a downturn in customer visits to Target, outpacing declines at other major retailers like Walmart and Costco. While factors such as weather and economic conditions may also contribute to these trends, the impact of the boycott on Target’s bottom line remains a significant concern.
“There was a noticeable decline in traffic from late January to mid-February following the company’s pivot away from DEI,” noted Joseph Feldman, an analyst at Telsey Advisory Group, in a recent communication to clients. The boycott coincides with Target facing challenges such as tariffs and a reduction in consumer spending. Target reported a decrease in sales for February and projected a modest growth of around 1% for the year ahead.
During an interview with CNBC on Tuesday, Target’s CEO Brian Cornell expressed concerns about the potential impact of tariffs imposed by the Trump administration on Mexico. Cornell warned that the company might have to increase prices on fruits and vegetables as early as this week. Target also acknowledged that the uncertainty surrounding tariffs will affect its profitability in the current quarter.
Cornell explained that Target heavily relies on imports of produce from Mexico, particularly during the winter months. He mentioned that while efforts will be made to shield consumers from price hikes, it is likely that there will be noticeable increases in the coming days. CNN’s Ryan Young contributed to the coverage of this issue.
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