Target's DEI retreat has sparked a 40-day boycott
Rev. Jamal Bryant, an Atlanta-based megachurch pastor, is leading the boycott, which comes just over a month after the company's announcement. This decision has sparked criticism from customers and activists alike.
In an interview with CNN (WBD), Bryant urged consumers to 'divest' from shopping at Target, accusing the retailer of 'turning their back on our community.' His call to action references Target's previous DEI commitments, which included inclusive hiring, supplier diversity, and community investments such as the addition of 500 Black-owned businesses across its various product categories.
These efforts were launched in response to the murder of George Floyd in Minneapolis, Minnesota, where Target is headquartered. The company did not immediately respond to Quartz's request for comment.
Following its Jan. 24 announcement, Target has seen a significant drop in foot traffic. According to Placer.ai, which tracks retail foot traffic, visits to Target stores noticeably declined in subsequent weeks. While visits to other major retailers like Walmart (WMT) and Costco (COST) have also decreased due to inflation and rising grocery prices, the drop at Target appears more pronounced, suggesting a backlash tied to the company's policy change.
Target may face further consequences from this shift. Although it is smaller in scale than Walmart and Costco, it is a prominent retailer that consumers turn to for everyday needs. During the company's March 4 earnings call, executives mentioned the 'Tarzhay' experience 18 times, underscoring the need to restore the easy-going vibe it once boasted decades ago.
However, this may prove difficult. The red-and-white-themed retailer previously positioned itself as a leader in diversity and inclusion. But with growing geopolitical tension and mounting pressure from critics who view such initiatives as politically motivated, companies like Target have been forced to reconsider their stance.
The shift at Target follows a broader trend of corporations reevaluating their DEI strategies in response to political and economic pressures. Major retailers like McDonald's and Walmart have also adjusted their DEI programs, while companies such as Costco have maintained their commitments.
The 63-year-old retailer faces additional challenges. In February, shareholders sued Target, accusing it of concealing the risks associated with its diversity initiatives. Later that month, the state of Florida filed another lawsuit, accusing the company of obscuring the financial risks associated with its DEI efforts.To make matters worse, the company must contend with President Donald Trump's tariffs and weaker sales. On March 4, Target warned of a 'meaningful' decline in first-quarter profits, citing ongoing consumer uncertainty and the impact of tariffs on imported goods.
In an interview with CNBC (CMCSA), CEO Brian Cornell explained that fresh produce imports from Mexico, a key supplier during the winter months, will be directly impacted by ongoing trade policies.
'We will try to protect pricing, but the consumer will likely see price increases over the next couple of days,' Cornell said, specifically mentioning that popular items like strawberries, avocados, and bananas would see price hikes 'certainly over the next week.'
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