Target sales down after dropping DEI initiatives

Target has officially taken a financial hit after reversing course on diversity, equity, and inclusion (DEI) initiatives.

The retail giant has reportedly lost more than $12.4 billion in revenue, seen its stock plunge by $27.27 per share, and is grappling with multiple lawsuits linked to its shifting DEI policies.

In addition to boycotts in recent weeks, more actions are planned throughout the coming months.

The People’s Union boycott will include different companies throughout the spring and into summer, according to USA TODAY. A new, broader one-day economic blackout will be on April 18 and a third is set for July 4.

Separate but powerful actions from Black-led organizations and faith leaders have intensified pressure on the company. 

The Rev. Jamal Bryant launched a national Target Fast, calling for continued community mobilization.

Meanwhile, National Newspaper Publishers Association (NNPA) and the NAACP initiated public education and selective buying campaigns. While distinct in approach, the collective efforts have amplified scrutiny and economic consequences for Target.

Early data from analytics firms Placer.ai and Numerator confirms a decline in consumer support. Numerator found that Black and Hispanic households are reducing their visits to Target at the highest rates. Placer.ai reported that on Feb. 28, the economic blackout day nationwide, Target saw an 11% decline in store traffic compared to average Friday visits.

Since the company’s Jan. 24 DEI reversal, Placer.ai data shows Target’s overall foot traffic has fallen every week. 

In contrast, Costco has gained ground. The warehouse chain rejected a shareholder proposal to weaken its diversity programs and stayed firm in its DEI stance. Analysts say Costco’s consistency and longstanding commitment to high wages and strong employee benefits may attract consumers frustrated with Target’s retreat.

Costco’s shares have outperformed those of Walmart and Target over the same period. 

Walmart has also seen a dip in foot traffic, though not as sharply as Target.

While grassroots boycotts are not always financially damaging in the long term, Target’s situation may prove different. 

“Boycotts put a ‘negative spotlight’ on the company that can have reputational consequences,” Brayden King, professor at Northwestern University’s Kellogg School of Management, told Forbes. 

He noted that consumer trust, closely tied to corporate reputation, plays a critical role in shopping habits.

In addition to its woes, Target issued a string of recalls in 2025 involving products sold on shelves due to undeclared allergens and injury hazards. Affected items included Gerber Soothe N Chew Teething Sticks, Dorel Safety 1st Comfort Ride and Magic Squadchild car seats, Nuby stroller fans, Baby joy high chairs, Chomps beef and turkey sticks, and Pearl Milling Company pancake mix.

Bryant said the Target fast, in association with Lent, the 40 days and nights leading to Easter (April 20), has now mobilized more than 150,000 participants and persuaded over 100 Black vendors to withdraw their products from Target. He urged continued focus and unity in holding the company accountable.

“It is critical that Black people can’t afford to get A.D.D; we can’t taper off and lose synergy. It’s important that people stay the course and keep amplifying our voices because it is being heard from Wall Street to Main Street,” Bryant said.

The Rev. Al Sharpton, founder of the National Action Network, said Black consumers should continue to support Costco over other retailers that reneged on DEI promises and fired DEI executives.

“As I stood in Washington on King Day, just as Donald Trump put his hand on the bible and launched a crusade against DEI, I made it clear NAN will be thoughtful in how it identifies those who have gone back on our word to us,” he said last month in a release.

 “We have convened a council with our partners to examine what companies have reneged on DEI, what their profit margins are, and how we can use Black buying power to make a statement. We appreciate the spirit of the various efforts but the only one that I and NAN have authorized will be announced at our national convention this April.”