Target Faces Devastating Boycott As Customers Flee Over DEI Rollback

Target has found itself at the centre of a national backlash after reversing its Diversity, Equity, and Inclusion (DEI) initiatives, with data revealing a sharp decline in both web and app traffic. The retailer saw a 9% drop in website visits on the day of a nationwide boycott, with its app traffic plummeting 14%, according to Supermarket News.

Meanwhile, competitors who maintained their DEI commitments have benefited. Costco, which publicly reaffirmed its support for DEI initiatives earlier this year, saw a 22% surge in web traffic on the same day, with app visits increasing by 3%. Other major retailers also felt the impact of the boycott, with Walmart experiencing a 5% drop in website visits and Amazon seeing a 2% decline. Notably, Amazon's app traffic rose by 1%, reflecting a more mixed consumer response.

Target's DEI Policy Shift Sparks Controversy

The backlash follows Target's announcement in January 2025 that it would be scaling back its DEI commitments. This included dissolving its Racial Equity Action and Change (REACH) committee and renaming its Supplier Diversity Team to the Supplier Engagement Team, a move the company said was meant to create a more 'inclusive' approach to supplier relationships.

This shift has been widely criticised, particularly among Black business owners and activists who had previously supported Target's DEI policies. Pastor Jamal Bryant, Senior Pastor at New Birth Baptist Church in Metro Atlanta, spearheaded a 40-day boycott of the retailer, urging 100,000 Black consumers to participate in an 'economic fast' to demonstrate the power of Black spending, per Black Enterprise.

Boycotts Gain Traction, Influencing Consumer Spending

Bryant's movement, which began on 5 March 2025, aligns with broader concerns about corporate backpedalling on racial equity. According to the pastor, Black consumers contribute £18 million ($23 million) per day to Target's revenue. He insists that the boycott is not designed to harm Black-owned brands stocked at Target, but rather to force the company to reconsider its stance.

'Dr Bryant's fast calls for immediate action. He is urging Black consumers to halt all purchases from Target and divest any stock holdings in the company,' stated the press release. He drew comparisons to Dr Martin Luther King Jr.'s economic boycotts, stressing that financial restraint remains a powerful tool for social change.

Impact on Other Retailers

The boycott has further polarised consumer habits, with some shifting their spending towards companies that have upheld their DEI policies. Costco, which has continued to support DEI efforts, saw a noticeable uptick in foot traffic and online engagement. Walmart, which ended funding for its Centre for Racial Equity and ceased sharing data with the Human Rights Campaign, also experienced a drop in online engagement, though at a smaller scale than Target.

The Future of Corporate DEI Commitments

The response to Target's policy reversal underscores a wider corporate dilemma: whether to maintain DEI initiatives in the face of political and financial pressures. Under Donald Trump's second administration, several executive orders have aimed at curbing federal DEI programmes, influencing companies to reconsider their commitments.

While some businesses have opted for a strategic retreat, others—such as Costco—have doubled down on their initiatives, positioning themselves as leaders in corporate responsibility. The ultimate impact on consumer loyalty and revenue remains to be seen, but one thing is clear: the conversation around DEI in corporate America is far from over.

As the 40-day boycott continues, its long-term effects on Target's bottom line and reputation will be closely monitored. Whether the retailer will make further adjustments to its DEI strategy remains uncertain, but for now, the battle over corporate responsibility and consumer activism is in full swing.