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Months After Target’s DEI Rollback: What’s Happened So Far

Employers| Job Seekers
February 11, 2025•6 min read

In recent years, Diversity, Equity, and Inclusion (DEI) initiatives have become integral to corporate strategies, aiming to foster inclusive workplaces and address systemic inequalities.

However, Target Corporation's recent decision to scale back its DEI programs has placed the company under significant external scrutiny.

This article examines the factors leading to Target's DEI rollback, the ensuing public and legal reactions, and the broader implications for the corporate landscape.

Target’s DEI Journey: A Timeline of Commitment and Progress

  • 2016: Target introduces its first comprehensive DEI strategy, focusing on increasing representation of women and people of color across all levels of the organization.

  • 2018: The company launches its Supplier Diversity Program, aimed at increasing procurement from minority-owned, women-owned, and veteran-owned businesses.

  • 2020: In response to the George Floyd protests and national calls for racial justice, Target announces its Racial Equity Action and Change (REACH) initiative, committing $100 million to support Black communities and increase Black representation in leadership roles.

  • 2021: Target reports early success with its DEI initiatives, including a 15% increase in Black representation among managers and a growing percentage of procurement from diverse suppliers. These efforts earned the company recognition on several “Best Places to Work for Diversity” lists.

  • 2023: Target expands its DEI goals to address intersectional representation, focusing on LGBTQ+ inclusion and employees with disabilities.

Despite these achievements, Target’s decision in January 2025 to scale back its DEI programs marked a significant shift in its approach.

The company announced the conclusion of its three-year REACH goals and discontinued participation in third-party diversity surveys, including the Human Rights Campaign’s Corporate Equality Index. The “supplier diversity” team was renamed to “supplier engagement,” signaling a change in strategy (ESG Dive, 2025).

Did DEI Deliver Results for Target?

Target’s DEI efforts showed tangible business benefits during their implementation.

According to Target’s 2022 Diversity Report, stores with higher diversity metrics experienced 5% higher customer satisfaction scores and 8% lower employee turnover compared to less diverse locations.

Financial Impact: The Supplier Diversity Program contributed to a $1 billion increase in procurement from diverse-owned businesses in 2021, strengthening Target’s supply chain and expanding its customer base (Target’s Diversity Report, 2022).

Employee Sentiment: Internal surveys conducted in 2023 showed that 78% of employees felt Target was committed to fostering an inclusive workplace, with employee engagement scores 12% higher than the retail industry average.

Employee and Consumer Perspectives

Employee Voices: While some employees welcomed the shift as a necessary realignment of business priorities, others expressed disappointment. One long-time manager stated:

“Many of us saw firsthand how the REACH program improved workplace morale and retention. The change in direction will take some adjustment.” (Star Tribune, 2025)

Consumer Reaction: Consumer advocacy groups have taken to social media, urging boycotts under hashtags like #TargetDEI and #BoycottTarget, calling for greater transparency and accountability.

According to a recent YouGov survey, 45% of respondents felt Target’s rollback was a “missed opportunity” to lead in corporate diversity efforts (YouGov, 2025).

Public and Legal Reactions

Target's decision sparked considerable public backlash. Activists criticized the timing of the rollback, which was announced just before Black History Month.

Nekima Levy Armstrong, a prominent civil rights attorney, encouraged consumers to support Black-owned businesses rather than shopping at Target.

In addition to public protests, Target now faces legal challenges.

The City of Riviera Beach Police Pension Fund has filed a class-action lawsuit against the company, alleging that Target misled investors about the risks associated with its DEI initiatives.

The lawsuit claims that these policies led to boycotts and a drop in stock price, resulting in substantial financial losses for shareholders (Reuters, 2025).

Financial analysts noted that Target’s stock fell by 12% in the weeks following the announcement, intensifying concerns among investors (MarketWatch, 2025).

Comparing Corporate DEI Trends

Target’s rollback is part of a broader trend among U.S. corporations reassessing their DEI commitments in response to external pressures.

Companies such as Google, Meta, and Walmart have also scaled back DEI initiatives, citing evolving legal landscapes and shareholder concerns (Business Insider, 2025).

While some firms remain committed to their DEI strategies, others have chosen to reduce or eliminate programs, raising questions about the future of corporate diversity efforts.

Critics argue that these rollbacks undermine workplace equality and contradict widespread public support for DEI initiatives (AP News, 2025).

Broader Implications and Future Outlook

Target’s DEI rollback highlights the complex challenges corporations face when balancing diversity commitments with external pressures.

The backlash and legal scrutiny illustrate the growing risks associated with perceived inconsistencies in corporate DEI messaging.

Looking ahead, companies may need to adopt more transparent and measurable DEI strategies to navigate this evolving landscape.

Stakeholders—both employees and investors—are increasingly demanding accountability and genuine action on diversity.

Conclusion

Target's decision to scale back its DEI initiatives has placed the company under intense scrutiny from the public and investors.

The ensuing backlash and legal challenges underscore the complexities corporations encounter in implementing and maintaining diversity programs.

As the corporate world continues to grapple with these issues, the importance of genuine and sustained commitment to DEI remains a critical consideration for businesses aiming to foster inclusive and equitable workplaces.

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Sources & References:

Target DEI rollback 2025Target diversity initiativesTarget class-action lawsuit DEICorporate DEI trends 2025Impact of DEI rollbacks on businesses

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