The current boycott against Target, initiated over the company’s decision to roll back its Diversity, Equity, and Inclusion (DEI) initiatives, is expected to hit the retailer particularly hard. This 40-day boycott, which began on March 5, coincides with a challenging period for Target, as it faces declining sales, increased tariffs on imports from Mexico, and a broader economic slowdown.
The boycott comes at a time when Target is already experiencing soft sales and anticipating significant year-over-year profit pressure in the first quarter of 2025. And tariffs on Mexican imports are expected to further strain the company’s finances.
Foot traffic at Target stores has declined significantly since the DEI rollback, with data showing a notable drop in customer visits. This decline is attributed to both the boycott and broader economic factors.
The boycott against Target is part of a larger movement aimed at pressuring corporations to maintain their commitments to DEI policies.
Other major retailers, such as Walmart and Amazon, have also faced criticism for rolling back similar initiatives. The economic blackout on February 28, which targeted several major retailers, demonstrated the potential impact of coordinated consumer actions on corporate profits.
Also, this move is seen as a retreat from commitments made following the George Floyd protests. The Minneapolis-headquartered company has announced its decision to conclude the Racial Equity Action and Change (REACH) initiative in 2025. This program was a significant commitment, with a promise to invest over $2 billion in Black-owned businesses by the end of that year. Additionally, Target has rebranded its “Supplier Diversity” team as “Supplier Engagement.” These changes reflect a strategic shift aimed at fostering deeper connections and broader opportunities within their supplier network.
The boycott against Target is likely to exacerbate the company’s existing challenges, potentially leading to further financial losses and reputational damage. The timing of the boycott, coinciding with economic pressures and legal issues, makes it particularly challenging for the retailer.