Target Faces 10-Week Decline in Store Visits After DEI Rollback

New York, N.Y. — Foot traffic at Target stores has declined for ten consecutive weeks, coinciding with the company’s rollback of diversity, equity and inclusion (DEI) policies—a decision that has sparked nationwide boycotts, investor lawsuits, and broader questions about the future of corporate DEI commitments.

Target’s DEI Rollback Sparks Backlash

In January 2025, Target announced it would end its three-year DEI goals, discontinue external reporting to initiatives such as the Human Rights Campaign’s Corporate Equality Index, and conclude its Racial Equity Action and Change (REACH) initiatives. The company also restructured its supplier diversity program, moving away from its previous $2 billion commitment to Black-owned businesses.

The decision was framed as a strategic shift to align with a changing business environment. “Many years of data, insights, listening and learning have been shaping this next chapter in our strategy,” wrote Kiera Fernandez, Target’s chief community impact and equity officer, in a memo to employees. 

Target emphasized it remains committed to “creating a sense of belonging for our team, guests and communities through a commitment to inclusion,” but critics argue the rollback signals a retreat from meaningful DEI action.

Nationwide Boycott and Declining Foot Traffic

The rollback triggered immediate backlash. More than 200,000 people participated in a nationwide boycott, many inspired by a 40-day “Target Fast” led by Rev. Jamal Bryant, a prominent Atlanta pastor. The boycott coincided with Lent and called on shoppers to support Black-owned businesses instead.

Data from analytics firm Placer.ai shows that Target’s foot traffic fell by 9% year-over-year in February and 6.5% in March, marking ten straight weeks of decline. The slump began the week after the DEI rollback announcement and has continued despite the end of the Lenten boycott. Meanwhile, competitors like Costco, which have maintained their DEI programs, have seen steady increases in store visits.

Investor Lawsuits and Financial Impact

The fallout extends beyond customer visits. Target’s stock dropped 12% after the DEI rollback, with investors filing lawsuits alleging the company misrepresented the risks associated with cutting DEI initiatives. Plaintiffs claim Target failed to warn shareholders about potential backlash and legal exposure, leading to avoidable financial losses. Legal experts predict that settlement costs could further impact the company’s earnings in upcoming quarters.

Broader Corporate Implications

Target’s experience has become a case study in the risks and complexities of altering corporate DEI strategies. The company faces pressure from both political leaders advocating for reduced diversity efforts and customers demanding inclusive practices. While some companies, such as Walmart and McDonald’s, have also scaled back DEI programs, others like Costco have resisted, and are seeing positive results in customer engagement.

Meetings between Target executives and civil rights leaders, including Al Sharpton, signal ongoing dialogue, but as of late April, Target has not reversed its DEI rollback. The company’s future strategy remains under scrutiny from investors, customers, and advocacy groups alike.

Key Data and Trends

What’s Next for Target?

While Target’s leadership has reiterated a commitment to “belonging for all,” the company’s recent policy changes have led to sustained boycotts, negative publicity, and legal action. The coming months will test whether Target can regain consumer trust and stabilize its business, or if the backlash will have lasting effects on its brand and financial performance.

Target Faces 10-Week Decline in Store Visits After DEI Rollback (April 24, 2025)

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Tags: Target, DEI, boycott, retail, diversity, equity, inclusion,
foot traffic, consumer behavior, corporate policy