Target Sees a Decline in Stocks
Target, once a favorite shopping destination for groceries, home décor, and essentials, is facing significant backlash after scaling back its diversity, equity, and inclusion (DEI) initiatives. The retailer’s decision has sparked boycotts and protests, leading to a decline in consumer sentiment and stock performance.
As calls for boycotts and four-day “fasts” gain traction, the financial consequences are becoming evident. Business Insider reports that Target’s stock has plummeted 30% over the past year and 50% since 2021. Economic factors, including anticipated tariff-related price hikes, are further impacting shoppers’ spending habits.
Zak Stambor, a senior retail analyst at eMarketer, highlights how these economic pressures affect Target’s business model. “People expect prices to rise, and that’s causing them to spend more conservatively. Target’s business relies on people throwing this or that into their cart,” he told Business Insider.
In January, Target adjusted its DEI strategy, replacing its Racial Equity Action and Change (REACH) program with a new framework, “Belonging at the Bullseye.” This shift reflects a broader trend of companies scaling back DEI efforts in response to political and cultural pushback.
The decision has drawn sharp criticism from Black community leaders, including Rev. Jamal Bryant, who has urged consumers—particularly Black shoppers—to take their business elsewhere. Bryant emphasized that Black consumers spend an estimated $12 million per day at Target and deserve greater corporate accountability.
In response, Bryant has called for a 40-day Target “fast” during Lent, encouraging consumers to boycott the retailer. His campaign aims to challenge systemic inequities and hold corporations accountable for their commitments to diversity and inclusion.
Many consumers are now shifting their loyalty to businesses that continue to prioritize DEI. A Numerator survey found that Costco has gained 7.7 million additional visits, signaling that shoppers are actively seeking alternatives to Target.
Bryant remains steadfast in his stance, stating that the boycott is about more than just retail choices—it’s a stand against racial and gender inequities. As consumer activism grows, Target’s response to the controversy may determine its long-term reputation and financial health.
