Target is grappling with slumping sales and growing public pressure over its evolving stance on diversity, equity, and inclusion (DEI) initiatives — now rebranded as “belonging” — as the company prepares for a fresh wave of protests this weekend. On Wednesday, CEO Brian Cornell said the backlash to changes in Target’s DEI policies contributed to the company’s poor first-quarter performance. Although he did not provide specific figures, Cornell emphasized that the retailer faced several challenges in recent months, including declining consumer confidence, economic uncertainty, and public reaction to its updated inclusion policies. “We faced several additional headwinds this quarter,” Cornell said, referring to the company’s January decision to scale back DEI commitments. “The reaction to the updates we shared on belonging was certainly one of them.” The backlash appears to be having an impact beyond the bottom line. Civil rights leaders, including Pastor Jamal-Harrison Bryant, say they are unsatisfied with Target’s response and are planning demonstrations on Sunday, May 25 — the fifth anniversary of George Floyd’s murder in Minneapolis, which is also the home of Target’s headquarters. “We’re going to protest for nine minutes and 40 seconds — the same amount of time they applied pressure to George Floyd that led to his death,” Bryant said in a video message. He has invited churches across the country to join in front of local Target stores. Following Floyd’s killing in 2020, Target expanded its DEI efforts, pledging over $2 billion to support Black-owned businesses by 2025. The company vowed to purchase products from more than 500 Black-owned brands and contract services from minority-owned firms in areas such as marketing and construction. Cornell, at the time, described the tragedy as deeply personal, saying it happened just blocks from Target’s headquarters and could have involved any of his employees. But in January 2025, Target announced it was scaling back those initiatives. It dropped several goals and renamed various programs, signaling what critics say is a retreat from its earlier commitments. A spokesperson for the company insisted the changes would not affect existing brand or supplier relationships, and that Target would continue to recruit talent from a wide array of institutions, including historically Black colleges and universities. Despite these assurances, trust appears to be eroding. In recent years, Target has also significantly reduced its LGBTQ+ Pride merchandise offerings. What was once a highly visible and expansive seasonal collection has shrunk to a minimal selection, drawing criticism from advocates who once viewed the retailer as a corporate ally. The shifting direction has puzzled some observers, especially after Target made headlines in 2017 by donating $1 million to Donald Trump’s inauguration fund — a first for the retailer. That donation came despite Trump’s push to strip DEI-related requirements from federal agencies and contractors, and aligned Target with several tech giants like Google and Meta that also contributed. Internally, there are signs that Target leadership is trying to course-correct. Cornell recently acknowledged in a memo to employees that “silence from us has created uncertainty,” and has reportedly held private discussions with prominent civil rights figures including Bryant and Rev. Al Sharpton. Nevertheless, analysts warn that the company’s troubles go beyond protests and PR. Neil Saunders of GlobalData Retail noted that while the DEI controversy is part of the story, broader issues — including high tariffs on imported goods, increasing competition, and operational struggles — are weighing heavily on the retailer. “Target enters 2025 in a relatively weak position,” Saunders said. “This year will be another soft one.” As Sunday’s protests approach, Target finds itself caught in a balancing act between maintaining consumer trust, staying true to its values, and managing mounting political and economic pressures — with no easy answers in sight.
Target Faces Sales Slump Amid DEI Backlash and Renewed Protests
Posted: by Alvin Palmejar
