What: Target's retreat from diversity initiatives triggers consumer boycotts and 9% drop in store visits, highlighting challenges in managing social policy changes.

Why it is important: This consumer response demonstrates how DEI policy changes can significantly impact retail performance, even when aligned with broader industry trends.

Target's decision to roll back its diversity, equity, and inclusion initiatives has sparked significant consumer backlash, resulting in a 4% decline in foot traffic the week following the January 24 announcement, followed by a steeper 9% drop the next week. This contrasts with competitor Walmart's less than 3% decline during the same period. The retailer's move, which coincides with similar actions by other major companies like McDonald's and Ford, has particularly alienated loyal customers who valued Target's historically inclusive stance. The Dayton sisters, part of Target's founding family, expressed dismay at the decision, highlighting the company's long-standing progressive values. The situation is further complicated by ongoing boycotts and protests, including demonstrations at the company's Minneapolis headquarters.

IADS Notes: Target's DEI rollback reflects significant shifts in retail industry approaches. February 2025's analysis shows companies rethinking DEI strategies amid mounting pressures, while December 2024's data reveals Walmart's successful pivot in maintaining inclusion practices while modifying terminology. January 2025's emergence of the FAIR framework (Fairness, Access, Inclusion, and Representation) offers retailers a new approach to balancing inclusive practices with business performance. However, Target's experience, including a USD 10 billion valuation loss and shareholder lawsuit, contrasts sharply with luxury brands maintaining firm DEI commitments, highlighting the complex challenges retailers face in navigating social policy changes.

Target hit by consumer anger at its retreat from diversity policies