Revived “Tarzhay” Image? Target Shows Early Signs of Rebounding After DEI Backlash

Target appears to be clawing back from the sharp reputational and financial hits it suffered following its early-2025 rollback of Diversity, Equity and Inclusion policies, according to recent data.

According to Forbes, following widespread boycotts linked to the discontinuation of its DEI initiatives and controversial Pride-month displays, Target saw its stock tumble nearly 30 percent this year. Meanwhile, revenue and customer foot traffic slumped — Q1 revenue underperformed analyst expectations by almost half a billion dollars, with comparable-sales down 3.8% year-over-year.

Now, data from corporate-reputation tracker RepTrak suggest Target’s public standing may be improving, driven especially by more positive perceptions of product quality and renewed focus under incoming leadership. “We’re starting to see the twinkle of a new ‘Tarzhay’ emerge in its reputation,” said RepTrak’s Stephen Hahn.

The rebound coincides with the company’s push to re-establish its hallmark blend of stylish, affordable merchandise and storefront appeal. A new SoHo-area concept store — designed to immerse shoppers in Target’s design-led identity — has been cited as a proving ground for that renewed focus.

That said, the improvements are still tentative. Key reputation metrics tied to workplace fairness, corporate conduct and social responsibility remain weak — all casualties of the DEI rollback. And ultimately, successful brand “rehabilitation” depends less on sentiment than on whether shoppers translate softened criticism into actual purchasing. “It must be looking to regain its reputation … for the sake of driving the business,” Hahn noted.

Indeed, analysts caution that full recovery — in both consumer trust and bottom-line performance — may take 12 months or more under the leadership of incoming CEO Michael Feddelke.