Retreat from diversity, equity, and inclusion initiatives prompted opposition.
In the early days of the Trump presidency, on January 24, Target announced a major shift in their diversity initiatives. They declared the end of hiring goals for minority employees, disbanded their executive committee dedicated to racial justice, and made other changes. Target explained this change as part of their new strategy, "Belonging at the Bullseye," introduced earlier, and stated their commitment to fostering a sense of belonging for all. The company emphasized the need to stay in line with the evolving external landscape.
Several Fortune 500 companies have taken steps to reverse their Diversity, Equity, and Inclusion (DEI) efforts due to court decisions, activist pressure, and threats from the Trump administration. Target, however, has faced more severe criticism than others due to its progressive image and extensive DEI efforts.
Marketing professor Shreyans Goenka from Virginia Tech highlighted that Target's inconsistent positioning on DEI issues made the company appear inauthentic. Target had been a strong supporter of DEI initiatives in the years following George Floyd's murder in Minneapolis. The company advocated for DEI programs, supported LGBTQ+ rights, and made efforts to attract young parents and minority customers, amassing a strong Democratic customer base.
However, public criticism over Target's DEI changes could potentially harm the company financially or leave lasting damage. One former Target executive, who wished to remain anonymous due to career repercussions, noted that customers were feeling betrayed, questioning the company's authenticity in its DEI commitments.
Target's DEI flip-flop has angered customers, who see it as a confusing back-and-forth. After committing to increasing its Black workforce by 20% and spending $2 billion with Black-owned businesses by 2025, the company has now reversed these pledges. Despite this, Target emphasized its continued commitment to inclusivity and offering a wide range of products and services, including those from Black and minority-owned companies.
The backlash against Target's move is evident. Announcements about its DEI changes sparked nearly three times more social media posts than Walmart's, with many condemning the decision. Prominent figures, like pastor Jamal Bryant, called for a 40-day boycott, which has already garnered over 50,000 signatures.
Data from Placer.ai showed a 4% annual drop in foot traffic to Target stores in the week following the announcement. While the cause for this drop is not definitively linked to the DEI controversy, it indicates that the situation has at least impacted store visits.
These changes have drawn comparisons to Bud Light's encounter with the right-wing backlash in 2023, raising questions about whether Target will face similar long-term consequences. The ease of substituting Target's products and services with those from competitors will be a critical factor in determining the boycott's effectiveness.
Sources:[1] The Washington Post[2] CBS News[3] NBC News[4] Forbes[5] The New York Times
- By 2025, several CEOs in the business sector may decide to roll back their companies' Diversity, Equity, and Inclusion (DEI) initiatives, following Target's example, due to perceived threats or pressure.
- Amidst growing criticism and potential financial harm, Target remains committed to promoting inclusivity and providing a wide array of products and services, including those from Black and minority-owned businesses, as part of their overall business strategy.
- If the backlash against Target's DEI changes continues and affects customer perceptions, competitors with more consistent DEI commitments might capitalize on the situation, targeting Target's customer base, especially those who value inclusivity and support minority-owned businesses.
