Showing posts with label target. Show all posts
Showing posts with label target. Show all posts

Sunday, June 07, 2026

17500: On Black-Owned Brands At Target.

 

Digiday published a lengthy report on Black-owned brands feeling alienated—and abandoned—by Target.

 

The retailer’s decision to pull back inclusive initiatives triggered a DEIBA+ domino effect with collateral damage to cultures, communities, and cash registers.

 

Target has alienated Black-owned brands, founders say, as some startups vanish from its shelves

 

By Mitchell Parton

 

This story was first published on Digiday sibling Modern Retail.

 

In 2022, April Showers finally got her big retail break as her brand, Afro Unicorn, entered Target and Walmart.

 

Afro Unicorn is a licensed-character brand designed for women of color that sells hair-care products, books, apparel and more. For Showers, as a Black entrepreneur aiming to normalize Black beauty, getting into mainstream retail was a critical milestone.

 

“It wasn’t to help normalize it for us,” Showers said. “It was there to normalize it for everyone else, so that when a little white girl walks into the room and sees a Black girl, she doesn’t look at her any differently.”

 

Nearly four years later, however, Showers’ products are no longer found on Target’s shelves after the company pulled back from some diversity, equity and inclusion initiatives. Showers told Modern Retail that, as a result of Target’s decision, she decided to stop advertising Afro Unicorn’s presence at the retailer, adding that the brand’s sales at Target fell below the company’s standards and that its products were cleared from its shelves by the end of 2025.

 

Some Afro Unicorn plushes and a book are still available on Target’s website, but not in stores — speaking to how long it can take for a brand’s inventory to be cleared from warehouses. The brand is still available at Walmart and CVS Pharmacy.

 

This isn’t the way Showers wanted things to go. She said she initially pushed her community to do a “buyout” — as in buying all the Black brands at Target until they sold out — but they were resistant to it. She said her followers, Black or not, did not want to shop at Target as they felt like the company didn’t acknowledge it had made a mistake in how it pulled back from DEI programs.

 

“I never want to feel like I’m hurting my community or anyone around, so if you tell me we’re boycotting [Target], then we’re boycotting it; one band, one sound,” Showers said. “I did not like how Target never came out with a statement and really put it on the backs of the founders to figure this all out.”

 

Afro Unicorn isn’t the only Black-owned brand that has disappeared from Target’s shelves over the past few years. While Target’s DEI pullback hurt its reputation within the Black community, other Black founders Modern Retail spoke with said they found Target to be a frustrating wholesale partner, even before 2025.

 

A couple of founders said they struggled to get key information from their respective buyers, which hampered their sales. One described promotions they had to pay to participate in that they thought would be free. And, in the case of another founder, they only got an answer about their brand’s fate with Target — after months of unanswered emails — after going to a Target diversity executive, even though the brand wasn’t part of any supplier diversity program at Target.

 

Target representatives declined to share details on specific conversations or interactions with vendors, but said that it makes changes to its assortment based on how products are performing and what shoppers are looking for.

 

“Style, design and value are at the heart of our differentiated assortment, and emerging brands play an important role alongside national brands and owned brands,” a Target spokesperson said in a statement. “We’re proud of our long-term record of helping small businesses grow and reach new customers at Target, and will continue to create opportunities for new brands.”

 

Other Black-owned brands once featured at Target have been removed from the retailer’s assortment without explanation. These include Alikay Naturals and Oyin Handmade, which are still sold outside of Target. Some, like hair-care brand Curls Dynasty, have gone out of business entirely.

 

Entrepreneur and author Tina Wells said her luggage and accessories brand, WNDR LN, was built exclusively for Target but was canceled and removed from stores by late 2024. While some of her products are still listed on Target’s website, she said she hasn’t fulfilled an order to Target since August 2023 and that anything still available is back stock.

 

A representative for Black-owned skin-care brand GlowRx, in an email, said the brand “no longer being in Target was not our voluntary decision.” 

 

Some brands may have been removed from Target due to their sales performance.

 

“I’ve seen them kick out eight brands — not because they were Black, not because they were woman-owned and not because they were Latina-owned, but because they didn’t perform,” Melissa Butler, founder of vegan lipstick brand The Lip Bar, said in an Instagram video last year. She was warning her shoppers that the same fate could come to Black brands if customers were to stop shopping for them at Target as part of a boycott.

 

Target, for its part, is trying to position 2026 as a comeback year. This month, Target reported its first quarter of sales growth in more than a year as CEO Michael Fiddelke and his team have worked to refine its assortment and invested hundreds of millions of dollars in payroll and store technology to improve the guest experience.

 

And, Target continues to expand the number of Black-owned brands it carries in stores. It has hundreds of Black-owned brands in its stores, double the amount compared to 2020, the company said in an email. Last fall, it added KBB by Kahlana to its stores, which a press release described as “one of Target’s most in-demand women’s apparel and accessories brands.” It continues to spotlight Black-owned brands on its website, such as through a Black History Month collection featuring Black designers.

 

But even as Target adds new Black-owned brands to its assortment, it has burned bridges with others.

 

“I personally don’t feel like we saw any benefit,” from being at Target, one Black founder who spoke on the condition of anonymity said. The founder said their brand was dropped in the fall of 2024 after several years with the retailer. “We invested a lot of money and a lot of time, and we spent much more money than we ever made at Target. We were doing so much better before we were in store at Target, and if I could redo it, I probably would have just not done the partnership at all.”

 

The lingering DEI problem

 

One of the big driving factors that led many Black entrepreneurs, like Showers, to pull back on their support for Target was the company’s decision last year to walk back some of its DEI goals, programs and initiatives. That decision — and Target’s murky communications around what led to the pullback — led to some shoppers boycotting the chain. 

 

Last year, Target concluded its three-year diversity, equity and inclusion goals, concluded its Racial Equity Action and Change initiatives, stopped all externally diversity-focused surveys such as the HRC’s Corporate Equality Index and renamed its “supplier diversity” team to “supplier engagement.” Still, the company said that this year, it fulfilled its 2021 commitment to invest $2 billion in Black-owned businesses.

 

Showers said fellow founders would tell her they were waiting for Target executives to admit they made a mistake on DEI, but that she was never optimistic. Target’s pullback itself came off as performative, Showers said, given that it previously had embraced the Black and LGBTQ+ communities, such as by making public statements on racial equity and investing in scholarships, business consulting and sponsorships aimed to support marginalized groups.

 

“It was like a slap in the face to the community that basically felt that they helped build Target’s name in the urban sector,” Showers said. “The community was hurt. It was an emotional attachment that they had with Target, because they felt like Target was there for us.”

 

Target did eventually address the frustration last May, but in an internal email that communications professionals found vague and underwhelming and didn’t specifically address what the company did.

 

Target’s Fiddelke told the Associated Press in March that boycotts were among the things that impacted its sales last year. The company’s net sales decreased 1.7% to $104.8 billion from 2024 to 2025. “We’ve got trust to win back with guests, and we’ll be focused on doing it,” he told the outlet. “There’s no easy button to win back trust, but we’ll do the work.”

 

Shortly after Fiddelke’s comments that Target’s goal was to win back guest trust, Atlanta pastor Jamal Bryant in March said he was ending his boycott of the company after “productive” conversations with Fiddelke and others at the company, according to USA Today. Target, however, did not offer any concessions or reverse any changes it made to its policies, the newspaper reported.

 

However, organizers of another boycott — civil rights attorney Nekima Levy Armstrong, Jaylani Hussein of the Council on American-Islamic Relations and Monique Cullars-Doty of Black Lives Matter Minnesota — held a press conference, also in March, to say their boycott remains ongoing.

 

But the DEI pullback has continued to harm the company’s brand reputation, argues SOC Investment Group, Mercy Investment Services and Trillium Asset Management. The activist investors launched a campaign this month encouraging shareholders to vote against the re-elections of former Target CEO and executive chair Brian Cornell, as well as lead independent director Christine Leahy.

 

“Target’s brand has eroded, and it’s not from taking a stance, but from appearing disingenuous on social issues,” said Emma Bayes, deputy director of SOC Investment Group, in an interview. Her firm works with labor unions and their pension funds to promote good governance. 

 

“Retreating from DEI commitments that once defined it as a leader, Target undermined its credibility, made the brand feel inauthentic at a time when consumers are actively seeking companies that stand firmly and consistently by their values,” Bayes said.

 

Showers said she’s not completely against working with Target again, but would need to see a statement made addressing its previous decision on DEI, among other things.

 

“I don’t see myself going back until Target actually does what they did [before] 2024 and truly embraces women, Black businesses and all other marginalized businesses, like they did previously, publicly,” Showers said. “I know that would never happen.”

 

Showers took a six-figure hit just within her hair-care line after leaving Target, she said. Her company lost a total of $600,000 in revenue from 2024 to 2025, according to her. She attributes those lost sales to retailer boycotts in response to DEI decisions in response to the Trump administration.

 

“We were collateral damage because of this administration’s policies,” she said. “It was this administration, with their fear that they did to these retailers for DEI, that caused the hurt.”

 

A costly bet on Target

 

For other Black founders, their issues with Target stem from their belief that the retailer was not a good partner in giving their brands visibility and accessibility nationwide.

 

When Trey Brown and his brother Donovan appeared on “Shark Tank” with their Ride FRSH line of air fresheners in 2023, the two co-founders said their goal was to expand the business at retail. Later that year, that dream became reality. They landed a deal with Target to get their products into stores, which was supposed to begin their launch into mass retail, in addition to an agreement with AutoZone.

 

Instead, Target has been a nightmare for the Black-owned brand, as Brown described to Modern Retail. Shortly. After the launch, he said, customers would complain that they couldn’t find the products in the stores. He discovered the stores would have the items but not put them on the floor, and instead hold them in the back room.

 

Brown said Ride FRSH only ever got an answer about what happened to his brand this year from a Target diversity executive, even though the brand was accepted at Target as any other supplier, not as part of any diversity program.

 

“Why do I have to talk to the diversity initiatives guy to get an answer when I’m not even in a DEI program, and never was?” Brown said. “I should be able to reach the owner of the specific section, the buyer of the section. But somehow, nobody’s following up, and nobody gave a shit. So it just was like, ‘OK, so I have to go talk to the Black guy to get a response?’”

 

He said the executive apologized and said that’s not the way Target handles it, but that their solution was to get in touch with Target Plus — a third-party marketplace program that only deals with products sold online, not in stores. Brown said he was told by the diversity executive that it was “not likely” that he would get his products back on the floor.

 

Ride FRSH no longer appears on Target’s website; Brown said he’s not exactly sure when Target stopped listing the product or selling it in stores. He said Target has sent invoices to the brand that buyers would tell the brothers to ignore.

 

“Even when they [Target] had an opportunity to tell us that we were no longer with them, they just didn’t tell us that,” he said. In recent months, he has struggled to get an answer from Target’s buyers on whether the retailer has discontinued the relationship, and if so, why they have done so. He also said he hasn’t gotten any information on how the brand performed at Target.

 

“We’re stuck with a whole bunch of inventory, trying to figure out what’s going on,” Brown said.

 

The founder whose brand was dropped by Target in 2024 went through a similar ordeal. 

 

“We were told there was a change in product lineup, so they were just not going to move forward,” they said, adding that there was no other reason given as to why they were removed. “That was the whole conversation.” This founder, like Brown, said they had sent several emails to Target buyers without a response when trying to get information on a promotion they were supposed to be part of.

 

The founder said they paid for and warehoused at least $100,000 in product to be prepared for the next season with Target. Target had encouraged them to have the product stored in the U.S. rather than overseas, they said, so the brand would be able to get it to the retailer if the company needed a last-minute shipment instead of paying up to $30,000 to ship it from overseas.

 

“We’ve been, like, selling through it, slowly but surely, but we’re paying ridiculous amounts of money, like warehouse fees,” they said.

 

The founder said being at Target was costly overall, due to shipping costs, giving Target 50% of the proceeds and having to pay to change their packaging at the request of Target buyers. Additionally, the entrepreneur said they would have to pay if they wanted to be featured in certain promotions through Target’s Roundel retail media network, including Black History Month promotions. “If I wanted to pay $25,000 for marketing, I wouldn’t go in Target, I would just make an ad and go direct-to-consumer myself,” they said.

 

Finally, the founder said they had to pay for a certification in order to be featured on Target’s website as a Black-owned vendor. They said they had thought Target would give the brand free marketing opportunities during Black History Month or other events.

 

Brown, for his part, said he had no numbers on how Ride FRSH sold at Target, making it impossible to tell other retailers how they performed there. That could jeopardize future attempts at retail expansion. “If another retailer wants to come to us and ask us for numbers, we don’t have any,” he said.

 

He estimates he has lost $200,000 due to what happened with Target. What’s particularly frustrating, he said, is that it also compromises his direct-to-consumer business, because the brand stopped focusing as much on it to fulfill orders for retailers and because the capital it would use to invest in it is tied up with the retailers. 

 

“You just want a chance to have an even playing field somewhere in this country,” Brown said. From his perspective, “there were never any issues with our products, and we did everything we were supposed to do. But if you don’t put the products out on the floor, then how are we supposed to compete?”

Wednesday, February 04, 2026

17338: BHM 2026—Target.

Target celebrates Black History Month…? Target?!

Friday, January 16, 2026

17316: Protestors Target Target Again.

 

MediaPost reported Target is facing more protests, the latest episodes stemming from ICE agents “aggressively and violently” detaining two employees at stores in Minnesota.

 

Hey, seems like a natural transition from DEI dumping to ICE detaining.

 

Target Under Fire After ICE Detains U.S. Citizens

 

By Tanya Gazdik

 

Target is facing protests after Immigration Customs Enforcement agents “aggressively and violently” detained two employees at one of the retailer’s locations in its home state of Minnesota, according to a local official. 

 

The detention occurred at the store in Richfield, Minnesota on Jan. 8 after a “confrontation that began in the parking lot and spilled into the vestibule, according to local officials and witness accounts,” reported the New York Post. “Minnesota state Rep. Michael Howard said the agents entered the store without a warrant and physically detained the workers, while family members and witnesses alleged the incident amounted to racial profiling.”

 

One of the employees shouted, “I’m literally a U.S. citizen!” as agents escorted him toward a vehicle, The Wall Street Journal reported.

 

“Over 100 people gathered outside the Target on State Street holding signs with pictures of people who have been killed by Immigration Customs Enforcement,” according to The (Purdue) Exponent. 

 

The employees were assisting customers at the mobile ordering pickup parking spaces when they were stopped by agents led by a senior U.S. Border Patrol commander, officials said.

 

Howard told Newsweek that both individuals detained during the enforcement action at the store in Richfield were injured and later released, describing the arrests as “pure madness” and criticizing what he called an escalation of federal enforcement in his community that he says has created fear. 

 

“The Richfield incident is one in a growing number of violent encounters between civilians and federal agents captured on video since the killing of Renee Nicole Good by the ICE officer Jonathan E Ross on 7 January,” according to The Guardian. “Gregory Bovino, the senior US border patrol official who has become the public face of the Trump administration’s immigration enforcement action in Minnesota and elsewhere, was present during the incident.”

 

According to Howard and video footage taken by witnesses, a team of ICE agents that had assembled at the Target forced two employees to the ground at the entrance to the store, then bundled them into a dark SUV.

 

“Target declined to comment,” according to The Minnesota Star Tribune. “The Department of Homeland Security said in a statement that Border Patrol arrested a U.S. citizen for assault.”

Tuesday, December 30, 2025

17299: We Heart WeLoveUs.shop

Digiday published a report on Essence launching WeLoveUs.shop, an online marketplace dedicated to Black women-led brands.

 

The content is definitely worth reading, as it underscores how everything from Target to Trump Tariffs have contributed and conspired to accelerate the employment challenges impacting US Black women.

 

Media giant Essence launches a marketplace for Black women-led brands

 

By Allison Smith

 

The story was first published by Digiday sibling ModernRetail

 

When LaToya Stirrup’s brand Kazmaleje first landed on Target’s shelves in 2022, it felt like a dream come true. The Miami-based founder had spent years building her hair-tool brand — which she launched in 2019 — and securing placement at a national big-box retailer gave her scale and visibility that would’ve been harder to achieve on her own.

 

At the time, Target touted its wholesale partnership with Kazmeleje, along with 20 other Black-owned or founded beauty brands, as part of a broader commitment to spend more than $2 billion with Black-led businesses by 2025. Target said the initiative “will help us create more equitable experiences for our Black guests, and use our company’s size, scale and resources to create economic opportunity for Black-owned businesses that extends outside of Target.”

 

But earlier this year, Stirrup noticed “a complete sales slowdown” at TargetShe attributed it to consumers who had stopped shopping at the retailer because of the company’s DEI rollbackAfter Target announced it would scale back some of its diversity, equity and inclusion initiatives in January, calls to stop shopping at the retailer spread. Modern Retail reported in August that many once-loyal Target shoppers were still boycotting the retailer because of its DEI rollback.

 

As a result of declining sales — Stirrup declined to share exact figures — Target decided to remove Kazmaleje’s products from its physical stores, she said. Beginning in 2026, she said the brand will be sold online-only at Target, via Target.com. Target declined to comment.

 

Stirrup is one of dozens of Black women founders navigating a particularly challenging moment for small businesses. Corporate rollbacks of diversity, equity and inclusion initiatives, including at major retailers like Target, have created new uncertainty around distribution, visibility and consumer demand for Black-owned brands. At the same time, President Donald Trump’s trade war has driven up costs through steep tariffs on top trading partners, squeezing margins for founders who rely on overseas manufacturing.

 

Against that backdrop, Essence has launched WeLoveUs.shop, a new online marketplace dedicated to Black women-led brands. The platform, which officially launched earlier this month, aims to give founders an alternative sales channel at a moment when the larger retail industry has become more volatile. WeLoveUs.shop currently features about 100 brands and 1,000 products across categories like beauty, wellness, fashion and home, with more than 400 additional brands expressing interest in joining future cohorts, according to Essence.

 

The idea for WeLoveUs.shop crystallized earlier this year as the toll on Black women in business became increasingly clear, Michele Ghee, Essence’s chief content officer, told Modern Retail. Since February, nearly 600,000 Black women have been sidelined by job losses and unemployment, according to Fortune. That reality, combined with rising costs from tariffs and shrinking opportunities tied to DEI rollbacks, made the launch of WeLoveUs.shop feel urgent. It was “all hands on deck” to get the marketplace up and running as quickly as possible, with key executives and stakeholders even working over Thanksgiving. The site quietly launched in beta just after Thanksgiving, before a wider public rollout around Cyber Monday.

 

“We know so many businesses are hurting right now,” said Ghee. “Nobody is immune to what is happening in the world today, especially for marginalized communities.”

 

For Stirrup, the consumer backlash against Target made it harder for her to promote Kazmaleje’s products at the retailer. “There was a lot of pushback, especially on social media, and you couldn’t really talk about being in [Target],” she said. “That limits you from being able to advertise, because we were getting the response of, ‘We’re not shopping there.’”

 

On an earnings call in May, Target CEO Brian Cornell said the company’s first-quarter performance was dented by several factors, including “the reaction to the updates we shared on belonging in January.” He also flagged tariff uncertainty and declining consumer confidence as other headwinds. He added, “While we believe each of these factors played a role in our first quarter performance, we can’t reliably estimate the impact of each one separately.”

 

The boycott against Target underscored the risk of relying too heavily on any one channel, making WeLoveUs.shop an attractive opportunity. “You really have to have a diverse revenue stream because you never know how the market will impact you,” she said.

 

This year has also been tough for small business owners because of tariffs, which have raised costs for founders importing materials or finished goods. For Brittny Horne, founder of RVL Wellness Co., tariffs have significantly constrained growth. RVL makes therapeutic jigsaw puzzles, and the brand’s products are entirely manufactured in China, one of the most heavily tariffed countries.

 

Tariffs “definitely slowed down our production of new products,” Horne said. “It’s just one of those things — another issue we have to try to navigate and figure out a solution.”

 

Horne said she explored moving production to the U.S., but quickly ran into cost barriers. “It’s way more expensive to manufacture in the U.S., especially unless you are ordering at least 5,000 units per SKU,” she said. With 11 SKUs in her lineup, she said, “There’s no way we could afford that much at this time.”

 

The uncertainty has forced her to rethink where and how RVL can grow. “It just kind of makes you now have to rethink, ‘OK, well, what do we look forward to next?’” she said. “‘Where’s a safe space for us to go?’”

 

That led to Horne’s decision to join WeLoveUs.shop, which has led to a “really big boost” in sales since the marketplace launched at the beginning of the month. Even though it’s only been a couple of weeks since the partnership began, the majority of RVL’s orders are now coming from WeLoveUs.shop, Horne said.

 

WeLoveUs.shop takes a 35% commission per transaction. That’s higher than what other marketplaces charge. Amazon, for example, takes a cut ranging from 8-15% per transaction, depending on the product category. But Amazon also charges sellers for other services, including advertising and fulfillment. In exchange for WeLoveUs.shop’s 35% commission rate, brands gain access not just to Essence’s audience but also to its full media ecosystem, including editorial coverage, social promotion, newsletters and PR support. Other brands that spoke to Modern Retail for this story said WeLoveUs.shop’s bi-weekly payouts were also more appealing than the 90- to 120-day payment cycles common in wholesale and consignment arrangements.

 

WeLoveUs.shop is gaining traction on social media, according to Essence’s Ghee, who said Essence has leaned heavily on its existing audience and distribution muscle to promote the marketplace. Essence reaches about 75 million touchpoints each month across its digital platforms, she said, and has been using a mix of curated gift guides, newsletters and social posts to drive attention to the new shop. One recent gift guide featuring products priced under $50 generated about 10,000 impressions within the first few days, Ghee said. In another example, a social post encouraging followers to “tag a Black business” was shared roughly 5,000 times in a similarly short period.

 

“For [Essence] to be able to put their media power behind more Black-owned brands at a time of great need, when small incomes are struggling, can really support them,” said Sky Canaves, a principal retail analyst at eMarketer.

 

Melissa Mitchell, a self-taught designer who sells accessories, apparel and home decor and more through her brand Abeille Creations, echoed that sentiment. “This year has been very up and down,” she said. “With this kind of partnership, this allows me to reach people that I probably would never have on my own.”

Friday, August 22, 2025

17161: Targeting Target’s Targeted Troubles.

 

Adweek reported the CEO of Target is stepping down after 10+ years, a decision presumably tied to sales sliding down for 10+ quarters.

 

While Adweek mentions it, there really aren’t firm opinions regarding the true impact of boycotts on profits.

 

Hell, even John Caldwell isn’t chiming in on the topic. Yet.

 

Target CEO Brian Cornell Steps Down Amid Continued Sales Decline 

 

Michael Fiddelke, currently chief operating officer, will take over in February 2026.

 

By Kathryn Lundstrom

 

Target CEO Brian Cornell is stepping down after 10 years.

 

The retailer has selected chief operating officer Michael Fiddelke as Cornell’s replacement, announced during Target’s Q2 earnings call. Fiddelke will take the reins on Feb. 1, 2026, and Cornell will move into the role of executive chairman.

 

The change comes amid continued sales declines—this marks its 11th quarter reporting flat or falling sales—and repeated consumer boycotts over the past two years.

 

Target has faced backlash from both ends of the political spectrum, starting when anti-LGBTQ activists criticized its 2023 Pride collection, leading the retailer to scale back Pride-related marketing and merchandise, and more recently when it dropped its supplier and workforce diversity programs.

 

“Our performance over the last few years has not been acceptable,” Fiddelke told investors.

 

Fiddelke has spent more than 20 years at the company, starting as a finance intern in 2003, according to LinkedIn. Prior to his role as COO, he was chief financial officer from 2019-2024.

 

During the earnings call, Fiddelke outlined a vision for his tenure that focuses on style and design, customer experience, and technological investment.

 

“We need to move faster, much faster,” he said. “Over the past few months, we’ve been urgently adjusting our approach to assortment planning amidst a rapidly evolving external tariff and consumer landscape.

 

“This type of speed and agility is exactly how we need to lead across all aspects of our business, serving as a textbook model for our new enterprise acceleration office.”

Friday, May 23, 2025

17072: TGIF = Target’s Ginormous Inclusion Failure.

 

MediaPost reported Target conceded boycotts impacted sales, contrary to reports declaring protests did not dramatically affect sales.

 

No response yet from John Caldwell.

 

Target Concedes Boycotts Hurt Sales, Cuts Forecast

 

By Sarah Mahoney

 

After months of speculation about the impact of DEI-related boycotts, Target is acknowledging that backlash to its social policies caused it to lose sales in the first quarter. Comparable store sales fell 5.7%, with total revenue down 2.8% to $23.8 billion, below already-muted expectations.

 

The Minneapolis-based retailer now expects full-year sales to decline in the low single digits, reversing a previous forecast of a 1% gain. CEO Brian Cornell also announced structural changes, including forming an “enterprise acceleration office” and the departure of Christina Hennington, chief strategy and growth officer, once seen as his potential successor.

 

Cornell attributed the disappointing performance to five consecutive months of declining consumer confidence, reduced discretionary spending, ongoing inflation, and “the reaction to the updates we shared on belonging in January.”

 

That vague phrasing refers to changes in the company’s diversity, equity and inclusion efforts, announced in the earliest days of the new presidential administration. While many other companies similarly backtracked, Target, once one of the fiercest advocates of racial equity efforts and a staunch supporter of LGBTQ+ groups, became a lightning rod.

 

As activist groups, including those led by Pastor Jamal Bryant in Atlanta, called for boycotts, foot traffic has declined steadily since the January announcement, according to Placer.ai.

 

While Target made no explicit reference to the boycotts during its earnings call, analysts say the damage is real. Neil Saunders, managing director of GlobalData, called Target’s handling of the problems a “DEI debacle” in his note on the results. “Aside from the politics of the move, this was not handled at all well, and it has alienated some previously loyal customers.”

 

In something of an apology tour, Cornell met last month with Rev. Al Sharpton, a civil rights leader, in a damage control effort. But even that move met derision from alienated shoppers, with “I didn’t know Al Sharpton was still a thing”-themed posts ricocheting around TikTok.

 

If anything, the rift between Target and Black consumers may be widening, with research continuing to show that Blacks, as well as younger shoppers, are more likely to boycott stores over policies they disagree with. Bryant is planning protests at Target stores on May 25, the fifth anniversary of George Floyd’s murder by Minneapolis police. USA Today reports that so far, 67 churches have joined in.

 

However, Saunders and other analysts note that boycotts are only part of Target’s woes. “Target continues to grapple with a competitive retail environment and deteriorating consumer confidence,” writes Noah Rohr, equity analyst at Morningstar. “With about 50% of its sales tied to discretionary product categories, the firm is exposed to cyclical swings in consumer demand, creating uncertainty for the remainder of the year."

 

Target executives also tried to downplay potential damage from upcoming tariffs. They said they expect to absorb “the vast majority” of costs. However, with half of the company’s goods originating outside the U.S., that seems unlikely, and Target execs conceded they would raise prices if necessary. Walmart, which sources about a third of its inventory from outside the U.S., has already signaled it will increase prices, drawing the ire of President Trump in social media posts.

 

Target’s net sales fell in every division except food and beverage. The company lost market share in 20 categories.

 

There were bright spots. Advertising revenue rose 25%, to $163 million. And the company says its fashion collaboration with Kate Spade was its most successful in over a decade.

 

Target is also bullish about summer. Executives on the call cited strong interest in a new Champion apparel partnership, a Nintendo Switch 2 release, and plans to position the retailer as a seasonal destination with a patriotic flair. “Americana, the Tarjay way,” one exec noted, promising red, white, and blue for the whole family.

Tuesday, March 18, 2025

17006: Big Box Behemoths Bounce Back From Boycotts.

 

Adweek reported the boycotts ignited by major retailers dismantling, diminishing, and disrespecting DEIBA+ programs did not dramatically affect sales.

 

Somewhere, John Caldwell is declaring, “I told you so.

 

Consumers Are Protesting Retailers’ DEI Policies, but the Boycotts Aren’t Working

 

Sales, ad spend, and web traffic haven’t moved much

 

By Trishla Ostwal

 

A nationwide boycott aimed at major retailers like Walmart and Amazon over their diversity, equity, and inclusion policies was meant to send a financial message. However, data from three separate sources shows that the impact was negligible.

 

On Feb. 28, a grassroots group organized by John Schwarz, a self-described “mindfulness and meditation facilitator” with more than 380,000 Instagram followers, boycotted Amazon for 24 hours. Amazon quietly scaled back on its DEI efforts in December.

 

According to Bloomberg Second Measure’s U.S. Consumer Spend Index, consumer spending on Feb. 28 dipped by 3% year-over-year, but the decline was within normal daily fluctuations. Spending also rebounded in the following two days, rising 4% on March 1 and 2% on March 2, compared to the previous year, again showing typical daily variation. The observed sales increases were largely due to Amazon Prime subscriptions, which often bill at the end of the month, according to Bloomberg Second Measure.

 

Overall, Amazon’s sales grew all three days, growing 9% on Feb. 28, 17% on March 1, and 11% on March 2.

 

The data suggests that boycotts have limited impact on consumer behavior based on the current macroeconomic conditions and overall consumer attitudes.

 

“Boycotts, generally, don’t work,” said Zak Stambor, senior analyst of retail and ecommerce at Emarketer. “It’s hard to mobilize consumers around a common cause. For most things, most people frankly don’t care that much.”  

 

The grassroots boycott has seen more movement since the Amazon blackout, especially targeting Target with a 40-day boycott initiated on March 6. The boycott is in response to Target’s January announcement to phase out half of its DEI initiatives and halt hiring and promotion goals for women, racial minorities, and underrepresented groups, according to the Associated Press. Walmart has also scaled back its DEI policies.

 

The Bloomberg Second Measure report showed that Walmart and Target saw year-over-year sales declines of 8% and 10%, respectively, on Feb. 28. However, both retailers bounced back over the next two days, aligning with typical consumer spending patterns. These fluctuations are consistent with broader trends observed throughout 2025, the report said.

 

Indeed, consumers’ wallets stayed open

 

Additional data from ecommerce analytics firm MikMak shows that Amazon’s share of online traffic increased from 23% to 32% between February 28 and March 2, showing no significant impact from the boycott, according to MikMak CEO Rachel Tipograph.

 

Walmart saw a slight decline, with its share of traffic slipping from 29% to 27% during the same period, largely due to Amazon’s gains.

 

Instacart, which was not targeted by the boycott, experienced the steepest drop in online traffic, falling from 23% to 15%, according to MikMak. By March 2, Instacart’s share of online traffic dipped to 11%.

 

Ad agency Wpromote tracked sales for more than 50 retail advertisers during the boycott. Total sales on February 28 had less than a 1% change compared to other Fridays in February, according to Wpromote’s data.

 

“We saw that consumer wallets stayed open,” said Natalie McCaffrey, VP of audience strategy and insights at Wpromote.

 

McCaffrey added that the boycotts did not affect ad spend. WPromote did see a 27% drop in ad conversions on Feb. 28, but McCaffrey noted that this decrease in ad performance isn’t necessarily tied to the boycott. Instead, it aligned with typical fluctuations seen on Fridays throughout the month. She added that other economic factors, such as tariffs and broader economic uncertainty, likely played a role in the observed dip.

 

Wpromote also tracked social media posts related to the boycott, finding that hashtags about the boycott barely gained traction. The agency’s benchmark for virality is a hashtag that accelerates from zero to 100,000 mentions within a few hours. However, the boycott’s main hashtags—#economicblackout and #economicboycott—only reached 60,000 mentions, according to McCaffrey.