Nearly a month after Target announced the scaling back of some of its diversity, equity, and inclusion (DEI) programs, the company is encountering backlash from customers, descendants of one of its founders, and civil rights advocates. On January 24, shortly after the start of the Trump presidency, Target declared it would eliminate hiring targets for minority employees, disband an executive committee focused on racial justice, and implement other changes to its diversity initiatives. The company cited a new strategy, “Belonging at the Bullseye,” introduced last year, emphasizing its commitment to fostering belonging among its team, guests, and communities while adapting to the evolving external environment. Target is among numerous Fortune 500 companies that have scaled back DEI efforts in response to conservative court rulings, activist pressure, and threats from the Trump administration to investigate what it deems as “illegal DEI.” However, no company has faced as intense a backlash from DEI supporters as Target. Due to its progressive customer base and more extensive DEI efforts, Target is under greater scrutiny compared to companies like Walmart, John Deere, or Tractor Supply. Shreyans Goenka, a marketing professor at Virginia Tech, noted that Target’s rollback appears arbitrary and politically motivated, which can lead to inconsistent branding and perceived inauthenticity. Historically, Target was a leader in DEI initiatives, especially following the 2020 murder of George Floyd in Minneapolis. The company also built a reputation as a progressive employer on LGBTQ issues, supporting gay marriage in 2014 and being one of the first national retailers to accommodate transgender individuals’ bathroom preferences. Target’s efforts to attract young parents and minority customers have cultivated a strong Democratic customer base, which is more likely to shop at and view Target favorably. While it’s too early to determine the financial impact or lasting damage, the backlash poses a significant challenge to Target’s business, highlighting the risks of abruptly abandoning diversity initiatives. A former Target executive, speaking anonymously, expressed concern over losing customer trust, noting that Black customers who previously supported Target now question its authenticity. Target’s DEI changes have left some customers feeling disoriented. Previously, Target had established a Racial Equity Action and Change committee, pledged to increase its Black workforce by 20%, and committed over $2 billion to Black-owned businesses by 2025. In 2022, Target was recognized for its DEI commitment by the Executive Leadership Council. Now, however, its racial equity committee, minority hiring pledges, and financial commitments to Black-owned suppliers are ending, along with participation in external diversity surveys. Target maintains its commitment to inclusivity and diverse product offerings, stating it has met prior diversity goals. Nevertheless, several top Black executives have left the company recently. Anne and Lucy Dayton, daughters of one of Target’s co-founders, described the company’s actions as “a betrayal” in a letter published in the Los Angeles Times. Social media analysis shows overwhelmingly negative reactions to Target’s DEI changes, with calls for boycotts and switches to competitors like Costco. Foot traffic to Target stores dropped 4% annually the week after the announcement, according to Placer.ai. Experts suggest Target misjudged its customer base, underestimating the backlash. This situation echoes Target’s 2023 Pride Month controversy, where it faced right-wing pressure over certain merchandise, leading to a temporary sales dip. Whether the current backlash will cause long-term damage remains to be seen, with comparisons drawn to Bud Light’s 2023 boycott. Jura Liaukonyte, a marketing professor at Cornell University, noted that sustaining a boycott against Target might be challenging due to similar DEI rollbacks by competitors. — news from CNN
