Consumer Backlash Over Policy Shift
Target is facing a 40-day consumer boycott starting Wednesday following DEI policy changes. The boycott, spearheaded by Rev. Jamal Bryant, an Atlanta-area megachurch pastor, coincides with the beginning of Lent and reflects growing frustration among consumers who feel the company has distanced itself from previous commitments to inclusivity.
The controversy stems from Target’s January 24 announcement that it would eliminate hiring goals for minority employees and dissolve an executive committee focused on racial justice. Instead, the company introduced a new approach called “Belonging at the Bullseye,” emphasizing inclusivity while adapting to an evolving business landscape. The move has sparked criticism, with some customers expressing their disappointment online. Anne and Lucy Dayton, daughters of one of Target’s co-founders, labeled the company’s decision “a betrayal.”
Corporate Response and Market Impact
Target’s decision comes amid a broader corporate retreat from DEI policy changes influenced by legal and political pressures. Many Fortune 500 companies have scaled back their diversity programs in response to legal challenges and increased scrutiny. However, Target has faced particularly strong opposition, given its longstanding reputation as a progressive employer.
The company has declined to comment on the boycott, but a spokesperson reaffirmed its commitment to inclusivity, stating that Target continues to offer a diverse range of products, including those from Black- and minority-owned businesses. Despite these assurances, some business leaders remain concerned about the boycott’s unintended consequences. Melissa Butler, CEO of the Black-owned makeup brand Lip Bar, voiced her disappointment over Target’s DEI shift but warned that a boycott could negatively impact minority-owned businesses that rely on Target as a key retailer.
Economic Pressures and Consumer Trends
The boycott comes at a challenging time for Target, which is already facing economic headwinds, including declining sales and increased tariffs. Recent data from Placer.ai shows that customer visits to major retailers such as Walmart and Costco have slowed in the past four weeks, with Target experiencing the steepest decline. Analysts suggest that the drop in foot traffic may be linked to the DEI backlash, though other factors like weather and economic conditions could also be at play.
Adding to Target’s financial strain, DEI Policy Changes and new tariffs on Mexican imports are expected to raise prices on essential goods, including fruits and vegetables. CEO Brian Cornell acknowledged the impact of tariffs in a recent interview, noting that rising costs could force the company to adjust pricing in the coming weeks. Target projects minimal sales growth this year, further compounding the challenges posed by shifting consumer sentiment and the ongoing boycott.
