Black Business News

DEI Rollback Costs Target Billions In Dollars & Loyalty

Target has lost over $12.4 billion after reversing its diversity, equity, and inclusion policies, sparking backlash from Black consumers, faith leaders, and civil rights organizations. With boycotts, declining foot traffic, and Black vendors pulling products, the financial and reputational consequences continue to mount.
#TargetBoycott #DEI #BlackConsumerPower #CorporateAccountability #JamalBryant #TargetFast #NNPA #NAACP #EconomicJustice

By Stacy M. Brown
Senior National Correspondent
@StacyBrownMedia

BlackPressUSA.com

Target continues to face mounting financial and reputational fallout after reversing course on diversity, equity, and inclusion (DEI) initiatives. The retail giant has 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.

Separate but powerful actions from Black-led organizations and faith leaders have intensified pressure on the company. Rev. Jamal Bryant launched a national Target Fast, calling for continued community mobilization. Meanwhile, the 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.

“Black consumers helped build Target into a retail giant, and now they are making their voices heard,” said Benjamin F. Chavis Jr., president and CEO of the NNPA. “If corporations believe they can roll back diversity commitments without consequence, they are mistaken.”

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 the national Blackout day last month, Target saw an 11 percent decline in store traffic compared to average Friday visits.

Since the company’s January 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 sharp 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.

Rev. Bryant said Target Fast 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. He added, “No, I’m now committed and grateful.”