Target (TGT) is navigating significant challenges as it faces boycott threats and declining foot traffic in its stores due to criticism over its diversity, equity, and inclusion (DEI) initiatives. In January, Target scaled back its DEI program shortly after President Donald Trump issued an executive order dismantling federal DEI programs, claiming they enforced “illegal and immoral discrimination.”
This decision included withdrawing from the Human Rights Campaign survey, discontinuing three-year DEI goals, and concluding Racial Equity Action and Change initiatives aimed at supporting Black employees and businesses. Following these changes, Target encountered multiple boycott threats from consumers.
According to Placer.ai data, foot traffic in Target stores began declining in late January, shrinking by 6.5% year-over-year last month. Amid this trend, Target CEO Brian Cornell met with Rev. Al Sharpton of the National Action Network on April 18 to discuss the company’s DEI decisions.
Sharpton emphasized the importance of commitment to fairness, stating that if an election determines a company’s stance, both parties have the right to withdraw. He will consider igniting a Target boycott if the retailer does not reaffirm its commitment to the Black community.
The meeting was described as “constructive” and “candid,” with next steps to be determined during the Easter holiday. Sharpton also criticized PepsiCo for scaling back its DEI initiatives, leading to a recent constructive meeting with PepsiCo leadership.
Target’s struggles come as it attempts to boost weak sales. In its Q4 2024 earnings report, comparable sales increased by only 1.5% year-over-year, and operating income fell by about 21%. The retailer also faces potential tariffs and an upcoming boycott from The People’s Union USA.
— new from TheStreet