Business

Target moves away from diversity initiatives: Resistance and calls for boycott hit US retail giant hard

Target is scaling back its DEI initiatives and risks boycotts from loyal customers, which is noticeably affecting the business.

Eulerpool News Feb 25, 2025, 4:36 AM

The US retailer Target is currently experiencing a noticeable departure of its customers after the company announced in January that it would end substantial parts of its Diversity, Equity, and Inclusion (DEI) programs. In response, the number of visitors in the nearly 2,000 Target stores fell by up to 9 percent within a few days, according to data from Placer.ai. Industry observers attribute the decline, among other things, to calls for boycotts by activists outraged by the end of the active diversity policy.

Previously, Target had publicly and for years advertised itself as an inclusive company, with advertising campaigns promoting the inclusion of minorities, people with disabilities, and LGBT customers. However, the company joined Walmart, McDonald's, and other large corporations in scaling back their DEI efforts after President Donald Trump signed several executive orders to restrict such measures. In a statement, Target announced it was adapting to the "dynamic external world" and aimed to "increase performance." However, the chain did not provide specific figures on the scale reduction.

The decision faces criticism from civil rights activists: Numerous representatives of the Black community feel betrayed over previously achieved successes. Members of the Dayton founding family also condemned the step. When Target once openly supported transgender customers, many customers saw the company as a symbol of a progressive, urban attitude. Now some activists accuse the corporation of fearing political pressure and thus alienating a once loyal customer base.

After years of stable sales development, the current headwinds could further burden the business in times of high inflation. According to trade experts, discounters like Target urgently depend on returning customers. Whether Target, which nevertheless emphasizes maintaining a wide product range for diverse communities, succeeds with its balancing act remains initially open.

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