DEI Rollback Sparks Customer Backlash, Hits Target's Q1 Sales

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Target's first-quarter sales significantly declined, dropping more than 7%, a dip the retailer attributed to pushback from scaling back its diversity, equity and inclusion (DEI) initiatives, according to Black Enterprise. This included a 3.8% year-over-year decrease in same-store sales, compared to a 3.7% drop in 2024. CEO Brian Cornell cited concerns about tariffs and the DEI rollback as contributing factors, stating the company could not reliably estimate the separate impact of each.

In January 2025, Target scaled back its "Belonging at the Bullseye" strategy, which focused on hiring and supplier diversity goals, and also eliminated its participation in external diversity-focused surveys. This move followed Target's prior public image as a DEI advocate, known for its "Black Beyond Measure Campaign" and its stance after the 2020 killing of George Floyd. The shift led to calls for a "corporate fast" from the advocacy group Black Wall Street Ticker between March 5 and April 17, and protests supported by community leaders such as the Rev. Jamal Bryant and the Rev. Al Sharpton.

While companies such as Target and Walmart faced significant consequences, including pushback from their own shareholders, due to DEI policy changes, other companies such as Costco, which maintained its DEI support, have reported increased revenue and customer traffic.