Target was once a strong advocate for DEI strategies, especially following George Floyd’s death by police in its home city of Minneapolis in 2020. The retailer built a reputation as a progressive employer regarding LGBTQ rights, publicly supporting same-sex marriage as early as 2014, even before it was recognized nationally. Target was also among the first major retailers to allow transgender employees and customers to use restrooms that align with their gender identity.

Recently, Target sought to appeal to young parents and minority shoppers, gaining a substantial customer base among Democrats. Polls and surveys indicate that Democrats are more likely to shop at Target and have a favorable view of the brand. Target has focused on establishing smaller outlets in urban areas and near universities, typically inclined to be more liberal.

It remains uncertain whether the public outcry will financially harm Target or inflict long-term damage on the company. Nonetheless, the backlash against the retailer’s DEI shifts poses a significant challenge and underscores the risks corporations face when they abruptly withdraw from diversity programs that still enjoy support from progressive consumers. Businesses are navigating a difficult landscape between promoting diversity and evading a conservative backlash.

A former Target executive, who requested anonymity due to potential job consequences, expressed that the company faces criticism from customers who feel deceived.

“Black consumers have supported Target because of its previous commitments. Now, there’s doubt about whether the company genuinely stood behind these initiatives or if it was merely a marketing strategy,” the executive stated.

Additionally, some shoppers and their families have reportedly stopped frequenting Target. “Regaining trust once lost is a tough challenge,” the individual emphasized.

Target’s shifting stance has led to frustration among customers who claim the abrupt changes have left them reeling.

In the wake of George Floyd’s murder, Target established a dedicated committee for racial equity and committed to boosting its Black workforce by 20% and investing over $2 billion with Black-owned businesses by 2025.

In 2022, Target was recognized for its “outstanding commitment to achieving Diversity, Equity, and Inclusion” by the Executive Leadership Council, which consists of prominent Black CEOs.

Nevertheless, Target has now altered its narrative. The racial equity committee, commitments to minority hiring, and financial backing for Black suppliers are set to conclude, along with the company’s engagement in external diversity-focused assessments from organizations like the Human Rights Campaign.

Despite these changes, Target maintains that it is still dedicated to inclusivity, asserting in a statement to CNN that it continues to offer a diverse range of products and services, including those from Black and minority-owned brands.

“For over two decades, Target has strengthened our business by cultivating teams with varied perspectives and experiences, crafting inclusive environments for both employees and guests, and devising strategies that reflect the diverse U.S. consumer base we serve,” the company stated.

Target has also confirmed that it is on track to fulfill its previous diversity objectives and financial commitments to Black suppliers.

However, several senior Black executives and leaders at Target have departed in recent years, including three members from the company’s executive racial equity committee.

Target is facing challenges on multiple fronts, and indications suggest that the backlash may be affecting its business performance.

Anne and Lucy Dayton, daughters of one of Target’s co-founders, called the company’s actions “a betrayal” and expressed their “shock and dismay” at the rollback of DEI programs in a letter published last week in the Los Angeles Times. “By backing down, Target and others are undermining the principles that have contributed to their success,” they stated, noting they are not involved with Target’s operations.

Additionally, Target saw nearly three times the volume of social media mentions regarding its DEI policy changes compared to Walmart, according to a review by The Social Element, a marketing agency.

The majority of these comments have criticized Target’s actions, with analysis showing the retailer received at least twice the number of negative comments regarding its DEI changes compared to positive ones. Many posts called for boycotts of Target in favor of retailers like Costco, which continue to uphold their DEI initiatives.

“Overall sentiment has been remarkably negative,” remarked Ashley Cooksley and Linn Frost, CEOs of The Social Element.

Prominent Atlanta pastor Jamal Bryant has announced plans for a 40-day boycott of Target set to begin in March, with over 50,000 people having signed a pledge online.

“We have observed a concerning retreat from Diversity, Equity, and Inclusion initiatives across major corporations,” the petition states. “The most egregious example is Target.”

Store visits also declined in the week following Target’s announcement about its DEI modifications.

Although foot traffic to Target locations had risen consistently for four straight weeks, there was a 4% decrease for the week of January 27—just three days after the announcement, according to data from Placer.ai, which monitors visitor patterns using phone location information. This decline could also be attributed to factors such as adverse weather or economic conditions. Current data for the weeks following is still pending.

Other businesses have adjusted their DEI practices amidst shifting legal and political landscapes without significant backlash. However, Target’s leadership miscalculated, believing that customers would not penalize the brand for similar changes, according to Scott Bisang, a partner at Connected Strategies, a communications consultancy.

“Target misestimated their customer base,” Bisang remarked. “They didn’t foresee that the public would be displeased as other companies managed to weather the storm.”

What perplexes some experts is how Target seems to be repeating the mistake of distancing itself from progressive customers.

In 2023, Target faced a backlash from right-wing groups concerning its Pride Month merchandise collection. The campaign was centered around a women’s swimsuit labeled “tuck friendly,” designed to conceal male anatomy. Misinformation circulated on social media, falsely suggesting it was targeted at children.

This campaign turned hostile, featuring threats against Target employees and vandalism within stores. Subsequently, Target chose to remove the most contentious items to ensure the safety of its staff.

Yet, this decision frustrated advocates for LGBTQ rights, who viewed it as a capitulation to intolerance. Following Pride Month in 2023, Target’s quarterly sales dipped, although they later rebounded.

“Once a strong advocate and sponsor of Pride initiatives, Target has seen the repercussions of its choices,” Bisang commented. “They received signs of trouble during the last LGBTQ pullback.”

The key question is whether the current backlash and boycott efforts will have a lasting impact on Target, akin to the situation with Bud Light, or if it will diminish over time. Bud Light’s parent company, A-B InBev, faced losses of up to $1.4 billion in sales due to right-wing backlash following a brief collaboration with transgender influencer Dylan Mulvaney in 2023.

Marketing professor Jura Liaukonyte of Cornell University noted that one reason for the success of the Bud Light boycott was the simplicity of substituting with brands like Coors or Miller, prompting minimal effort from customers.

A potential boycott of Target might face challenges in garnering prolonged support, as many competitors like Walmart and Amazon have also reevaluated their DEI strategies. Past campaigns against the likes of Goya Foods for its CEO’s support of Trump in 2020 saw limited results, largely because the boycotters were not part of Goya’s core audience to begin with, according to Liaukonyte.

“Whether Target faces sustained sales declines like Bud Light did will hinge upon the alignment of its core shopper base with the backlash and the convenience of switching to alternative stores,” she added.

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