Target’s recent decision to pull back on its diversity, equity, and inclusion (DEI) efforts didn’t just spark headlines, it sparked a boycott. And the financial impact? Tangible. In a matter of weeks, the retail giant saw billions shaved off its market value.

But was the backlash inevitable? What exactly triggered the decline? And most importantly—what can other companies learn from Target’s stumble?

What Happened?

In early 2025, Target rolled back several internal DEI programs that had previously been praised for supporting inclusive hiring and workplace culture.

The move came in response to rising political pressure, but instead of quieting controversy, it ignited it.

Customers took notice. So did investors.

The Financial Fallout

Within weeks, the numbers told a sobering story:

• $12.4 billion lost in market value as Target’s stock dropped by over $27 per share (The Charlotte Post, 2025)

• 3.1% Q4 sales decline, alongside a notable dip in February 2025 sales (The Sun, 2025)

• Foot traffic dropped 5.7% year-over-year the week of March 17, the eighth straight week of decline (Fortune, 2025)

These figures suggest the issue wasn’t a short-term PR hiccup. It was a deeper rupture in brand trust and consumer loyalty.

Who Walked Away?

While online outrage was loud, the real shift happened quietly, in stores.

Black and Hispanic shoppers, once among Target’s most loyal demographics, began walking away. Many cited disappointment in the brand's departure from values they believed in (Washington Informer, 2025).

This wasn’t just a protest. It was a collective decision by communities who no longer saw themselves reflected in the brand.

Legal & Investor Backlash

The financial fallout didn’t stop at consumer sentiment:

• A class-action lawsuit was filed by the City of Riviera Beach Police Pension Fund, accusing Target of misleading investors about the risks tied to its DEI strategy reversal (Reuters, 2025)

• Asset managers like Schroders and Royal London publicly criticized Target’s shift and vowed to hold its board accountable for the long-term risk (Financial News London, 2025)

In the eyes of many investors, DEI isn’t just an ethical choice but a material risk factor.

A Message to Employers

Target’s stumble is a warning: when a company walks back its DEI commitments, the consequences reach far beyond social media.

• Consumers are watching.

• Investors are tracking.

• Employees are deciding where to stay—or where to go next.

Sticking with DEI when it’s under fire says more about a company than any statement ever could.

Final Thoughts

This isn’t about left or right. It’s about consistency, values, and trust.

If your organization is considering scaling back DEI initiatives to “avoid controversy,” take a long, hard look at Target.

They didn’t avoid controversy. They created it. And they paid the price.

How Diversity.com Supports Employers & Job Seekers

At Diversity.com, we help businesses, organizations, and institutions build diverse, inclusive teams that reflect the world we live in.

We support hiring managers, HR professionals, and job seekers in navigating the evolving DEI landscape, especially in moments like these, when corporate decisions around inclusion are under the spotlight.

Whether you're expanding your team, strengthening leadership diversity, or looking for career opportunities in inclusive workplaces, we provide resources, job board solutions, and expert insights to support your goals.

For Employers & HR Professionals:

✔ Create a free employer account — Start hiring with inclusion in mind. Choose from single job postings or subscription-based plans for ongoing recruitment.
✔ Access a diverse talent pool — Connect with qualified professionals from a wide variety of backgrounds to drive innovation and growth.
✔ Stay informed with expert DEI insights — Learn how corporate DEI rollbacks—like Target’s—impact reputation, retention, and long-term success.

For Job Seekers:

✔ Find job opportunities with inclusive employers — Discover companies actively committed to diversity, equity, and inclusion across industries.
✔ Create a free job seeker account — Apply for roles that align with your values, skills, and professional goals.
✔ Gain insights into workplace inclusion — Learn about company DEI strategies, hiring practices, and resources to support your next career move.

We’re committed to helping both employers and job seekers build stronger, more inclusive teams and workplaces, especially in times when commitment to DEI matters most.

Explore our platform today and take the next step toward building a more equitable workforce.

Have questions? Contact Us. Our dedicated support team is ready to help.

Related Articles

• DEI Doesn’t Lower Hiring Standards. Here’s the Data That Proves It

• How to Choose the Right Job Board for Inclusive Hiring in 2025

• Why DEI in Big Tech Still Matters

• The NFL’s DEI Game Plan: Progress or PR Stunt?

Sources & References:

• The Charlotte Post. (2025). Target takes a hit: $12.4 billion in value lost after boycott. https://www.thecharlottepost.com/news/2025/03/06/business/target-takes-a-hit-12.4-billion-in-value-lost-after-boycott

• Fortune. (2025). Target can’t get its footing after its DEI program demise and a 40-day boycott. https://fortune.com/2025/04/01/target-dei-demise-boycott-foot-traffic-down-eighth-consecutive-week

• The Sun. (2025). Target DEI protest leads to sales drop and foot traffic decline. https://www.the-sun.com/news/13927694/target-dei-protest-foot-traffic-decline-sales-trump

• Washington Informer. (2025). Target stumbles as Black and Hispanic shoppers walk away. https://www.washingtoninformer.com/target-diversity-equity-backlash

• Reuters. (2025). Target is sued for defrauding shareholders about DEI. https://www.reuters.com/business/retail-consumer/target-is-sued-defrauding-shareholders-about-dei-2025-02-03

• Financial News London. (2025). Schroders and RLAM press boards on abandoned diversity pledges. https://www.fnlondon.com/articles/schroders-rlam-set-to-pressure-boards-over-axed-diversity-pledges-a7245ad0

• TIME. (2025). US companies scale back DEI efforts as Trump targets initiatives. https://time.com/7260689/us-companies-scaling-back-dei-efforts-trump-targets-initiatives