Last Updated on July 16, 2025 by Bertrand Clarke

In a surprising turn of events, Target, one of America’s retail giants, has seen a significant decline in store visits for five consecutive months, a trend that began shortly after the company announced a rollback of its Diversity, Equity, and Inclusion (DEI) initiatives on January 24, 2025. This decision, made just days after a significant political shift in the U.S., has not only sparked heated debates but also led to a measurable shift in consumer behavior. As shoppers express their sentiments through their wallets, Target’s foot traffic has dwindled, while competitors like Costco, which doubled down on its DEI commitments, are seeing robust gains. This article explores the dynamics behind Target’s declining store visits, the broader implications for retail, and what this means for the future of corporate social responsibility.

A Shift in Corporate Strategy

Target has long been a vocal advocate for diversity and inclusion, earning accolades such as a perfect score on the Human Rights Campaign’s Corporate Equality Index in 2009. The retailer championed initiatives like the Racial Equity Action and Change program, which focused on anti-racism training, hiring and promoting Black employees, and investing $2 billion in Black-owned businesses by 2025. However, on January 24, 2025, just five days after President Donald Trump’s inauguration, Target announced it was scaling back these efforts, citing a need to align with new administrative expectations. The decision included halting participation in external diversity-focused surveys and dismantling several DEI programs, a move that stunned many given Target’s decades-long commitment to inclusivity.

This strategic pivot was not isolated. Dozens of Fortune 500 companies, including Walmart and McDonald’s, also scaled back DEI initiatives in response to conservative pressures and an executive action titled “Ending Radical and Wasteful Government DEI Programs and Preferencing.” Yet, Target’s rollback has drawn disproportionate attention, likely due to its prior reputation as a DEI trailblazer. Social media platforms, particularly X, have been abuzz with criticism, with posts like one from @AttorneyCrump on May 25, 2025, stating, “When you walk away from equity, expect people to walk away from you,” reflecting the sentiment of many former customers.

Foot Traffic Tells the Story

Data from Placer.ai, a leading retail analytics firm, paints a stark picture. Since Target’s DEI announcement, foot traffic has declined for 20 of the 22 weeks, with only two weeks—starting April 14 and April 21—showing modest year-over-year (YoY) gains of 0.4% and 0.1%, respectively. Monthly figures are equally telling: February saw a 9% YoY drop, March a 6.5% decline, April a 3.3% decrease, May a 1.6% dip, and June a 3.9% fall. This consistent downward trend contrasts sharply with the first four weeks of 2025, when Target’s foot traffic was up between 5% and 11.8% YoY.

Meanwhile, Costco, which resisted calls to dismantle its DEI programs, has seen steady foot traffic growth. In June, Costco’s store visits rose by 1.6% YoY, following a 5.1% increase in May, a 7.5% jump in March, and a 2.2% rise in February. This divergence highlights a critical consumer response: while Target struggles, Costco thrives, potentially capitalizing on shoppers seeking brands aligned with their values.

Consumer Backlash and Boycotts

The decline in Target’s foot traffic coincides with organized consumer backlash, most notably a boycott led by Rev. Jamal Bryant, senior pastor of New Birth Missionary Baptist Church near Atlanta. Launched during Lent (March 5 to April 17, 2025), the “Target Fast” boycott attracted over 200,000 participants, exceeding its goal of 100,000. Bryant urged shoppers to redirect their spending to Black-owned businesses, a call that resonated widely. Even after Easter, when the boycott was initially set to end, organizers extended it, citing Target’s failure to reinstate its DEI programs. Social media platforms have amplified this movement, with comments on Target’s Instagram posts like “Never forget; Target does not support Diversity, Equality, or Inclusion” reflecting ongoing consumer discontent.

Target’s reputational metrics have also taken a hit. According to Caliber, a reputation analytics firm, Target’s “Trust & Like Score” dropped among Democrats by 5 points to 70, while its Governance Score, measuring perceptions of ethical business conduct, fell 15.4% from 65 to 55 between January and May 2025. The Recommendation Rate, indicating willingness to recommend Target, slipped from 49% to 37% over the same period. These declines suggest a loss of goodwill among a significant portion of Target’s customer base, particularly those who valued its DEI stance.

Employee Discontent and Operational Impacts

The DEI rollback has also stirred unrest among Target’s workforce. On a subreddit for Target employees, posts have highlighted empty DEI bulletin boards and reduced store hours due to low traffic. One employee noted, “Redcard Services and Guest Relations has been flooded by people cancelling their Redcards and complaining,” while another reported, “My store has had a huge cut back on hours… it is unusually slow since the DEI announcement.” Some stores have resorted to closing early, with one employee stating their location now closes at 10 p.m. instead of 11 p.m. due to boycott-related slowdowns. These accounts suggest that the consumer backlash is not only affecting foot traffic but also operational efficiency and employee morale.

Economic and Strategic Context

Target’s challenges extend beyond DEI-related backlash. The company reported a 2.8% decline in net sales for the first full quarter since the DEI rollback, with CEO Brian Cornell acknowledging an “exceptionally challenging environment” during a May 21, 2025, earnings call. Analysts like Neil Saunders from GlobalData Retail have pointed to broader issues, such as cluttered stores, stretched staff, and excessive use of locked display cases, which may deter shoppers. Additionally, Target’s partnership with Ulta Beauty, intended to boost foot traffic, hit a snag when Ulta paused expansion plans in April 2025, stopping short of the goal of 800 shop-in-shops at 610.

External economic pressures, including proposed tariffs under the new administration, could further strain Target’s recovery. The company now projects a low single-digit sales decline for the fiscal year, a downgrade from its earlier 1% growth forecast. Meanwhile, Costco’s robust sales growth—8.6% YoY for the five weeks ending April 6, 2025—underscores the competitive advantage of maintaining consumer trust.

The Bigger Picture: DEI in Retail

Target’s experience raises broader questions about the role of DEI in retail. While correlation does not imply causation, the timing of Target’s foot traffic declines suggests that its DEI rollback has played a significant role. Unlike Costco, which has leveraged DEI to enhance its “treasure hunt” shopping experience, Target’s retreat has alienated a portion of its customer base. A March 2025 survey by Ad Age and The Harris Poll found that 19% of U.S. adults have stopped patronizing brands that reversed DEI efforts, with Gen Z (40%) being particularly likely to do so.

The contrast with Costco is striking. By maintaining its DEI programs, Costco has not only avoided boycotts but also capitalized on a growing consumer preference for socially responsible brands. This trend is evident in posts on X, where users praise Costco’s commitment while criticizing Target’s reversal. For instance, a post by @PopCrave on April 2, 2025, highlighted Target’s eighth week of foot traffic declines, contrasting it with Costco’s gains.

Looking Ahead

As Target navigates this turbulent period, the path forward is uncertain. The company’s Form 10-K filing with the SEC acknowledges the “adverse reactions” from shareholders, customers, and employees due to its DEI rollback. A meeting between CEO Brian Cornell and Rev. Al Sharpton in May 2025 was described as “constructive and candid,” but no concrete steps to restore DEI initiatives have been announced. Meanwhile, consumer sentiment remains polarized, with some Republicans showing increased trust in Target (Caliber’s Trust & Like Score rose 5 points to 67 among Republicans), while Democrats and DEI supporters continue to pull back.

Target’s story serves as a cautionary tale for retailers balancing corporate values with external pressures. As consumer preferences increasingly favor brands with strong social commitments, the decision to scale back DEI could have long-term implications. For now, Target’s empty aisles and Costco’s bustling stores tell a tale of two retailers—one grappling with the fallout of a controversial choice, the other reaping the rewards of steadfast principles.

Conclusion

Target’s decision to roll back its DEI initiatives has triggered a significant consumer response, reflected in five months of declining foot traffic and a tarnished reputation among key demographics. As boycotts persist and competitors like Costco thrive, Target faces a critical juncture. Will it double down on its current strategy or seek to rebuild trust with its diverse customer base? Only time will tell, but one thing is clear: in today’s retail landscape, corporate values can make or break consumer loyalty.