Target Faces Declining Traffic Amid Nationwide Economic Blackout and Backlash Over DEI Rollbacks
The retail giant Target experienced a noticeable decline in both in-store and online traffic during a nationwide economic blackout organized by the People’s Union USA on February 28. According to data shared by Forbes, the company saw an 11% drop in store visits and a 9% decline in website traffic on that day. This event coincides with growing criticism of Target’s decision to scale back its diversity, equity, and inclusion (DEI) initiatives, a move that has sparked both celebration and outrage across the country. The economic blackout, a grassroots effort to demonstrate consumer power, appears to have had a tangible impact on Target’s operations, though the company did not directly attribute the decline to the boycott in its recent earnings report.
Why It Matters: The Broader Context of DEI Rollbacks and Consumer Backlash
The backlash against Target is part of a larger national conversation about DEI programs, which have become a political flashpoint in recent months. Upon returning to the White House, President Donald Trump signed an executive order ending DEI initiatives across the federal government, labeling them as "dangerous, demeaning, and immoral" and claiming they promote discrimination. This move aligns with a broader push by the Trump administration and its allies to roll back DEI programs, which they frame as examples of "wokeness" gone too far.
In response to this shifting political landscape, several major corporations, including Meta, McDonald’s, Amazon, and Target, have announced plans to reduce or eliminate their DEI initiatives. Target, for instance, cited an "evolving external landscape" when it ended its DEI goals in January. While some, particularly within the MAGA movement, have celebrated these decisions as victories against perceived overreach, many Americans have criticized the moves, arguing that DEI programs are essential for promoting equality and representation in the workplace and beyond.
Target’s Financial Performance Amid Soft Sales and Consumer Uncertainty
Target’s fourth-quarter and full-year 2024 earnings report, released on February 27, revealed a challenging financial landscape for the retailer. The company reported a "small decline" in net sales for February, with overall revenues slipping 0.8% last year, from $107.4 billion in 2023 to $106.6 billion in 2024. While the report did not explicitly mention the economic blackout or consumer boycotts, it noted that February’s top-line performance was "soft," attributed in part to unseasonably cold weather affecting apparel sales and declining consumer confidence impacting discretionary spending.
Target’s Chief Financial Officer, Jim Lee, acknowledged the challenges but expressed optimism about the company’s ability to recover. "We expect to see a moderation in this trend as apparel sales respond to warmer weather around the country, and consumers turn to Target for upcoming seasonal moments such as the Easter holiday," Lee said. However, the company remains cautious about its outlook for the year ahead, citing ongoing consumer uncertainty and potential tariff impacts.
Reactions to the Boycott and DEI Rollbacks
The People’s Union USA, the grassroots group behind the February 28 economic blackout, framed the event as a demonstration of consumer power and a rebuke to corporate actions perceived as out of touch with everyday Americans. John Schwarz, the group’s founder, said in a promotional video for the boycott: "For decades, they have told us that we are powerless, that we have no control, and that this system is too big, too strong, too unshakable. We are going to remind them who has the power."
The boycott has garnered significant attention, with over 50,000 people signing an online pledge to participate in a 40-day economic fast against Target, coinciding with Lent. The movement, led by Atlanta pastor Jamal Bryant, is a direct response to Target’s decision to cut back on DEI initiatives. While some have praised the initiative as a way to hold corporations accountable, others have questioned the effectiveness of such boycotts in driving long-term change. Brayden King, a professor of management and organizations at Northwestern University’s Kellogg School of Management, noted that while boycotts can draw negative attention to companies, they often have limited impact on consumer behavior or corporate profitability.
What’s Next for Target and Consumer Activism
As Target navigates this challenging landscape, the company is likely to face further grassroots backlash in the coming months. The People’s Union USA has already announced plans for another boycott targeting Target between June 3 and June 9, while Pastor Bryant’s 40-day economic fast is expected to amplify the pressure on the retailer. These actions may not significantly dent Target’s profits, but they could have reputational consequences, particularly if the company is perceived as out of step with the values of its customers.
The broader debate over DEI initiatives and corporate responsibility is unlikely to subside anytime soon. With the 2024 presidential election approaching, issues of diversity, equity, and inclusion are poised to remain a key battleground in American politics. For companies like Target, the challenge will be to balance the demands of a polarized political environment with the expectations of a diverse customer base. As the economy continues to evolve, one thing is clear: consumers are increasingly using their wallets to express their values, and corporations are taking notice.
