Boycotting Target, Part 1: How It Doubled Down on DEI, Then Backed Off

Summary

WSJ What’s News: "Boycotting Target, Part 1: How It Doubled Down on DEI, Then Backed Off"

Release Date: May 18, 2025 | Host: The Wall Street Journal

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Introduction

In the May 18, 2025 episode of WSJ What’s News, host Alex Osola delves into the tumultuous relationship between Target Corporation and its commitment to Diversity, Equity, and Inclusion (DEI) initiatives. This episode explores how Target's initial strong stance on DEI efforts led to substantial consumer backlash when the company later retracted these commitments, sparking a nationwide boycott.

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Setting the Scene: Target in Brooklyn

[00:30] Alex Osola opens the episode with a firsthand account of visiting a bustling Target store in Brooklyn's Atlantic Terminal alongside producer Jess Jupiter. Despite the active shopping environment, Osola hints at underlying tensions stemming from recent corporate decisions.

Reba McEntire interjects humorously, stating, “[00:30] Reba McEntire: I say it's booming.”

The Catalyst: Dropping DEI Goals

[01:05] The core issue unfolds as Osola explains Target's strategic retreat from DEI initiatives amidst the early days of the Trump administration. The company announced the cessation of its DEI goals and discontinued its program to support Black suppliers. Target justified these moves by citing the need to drive growth and adapt to the "evolving external landscape."

Consumer Backlash and Organizing a Boycott

[02:18] The reduction in DEI commitments did not sit well with Target's customer base. Osola highlights the swift mobilization of boycotting efforts, particularly on platforms like TikTok. Reba McEntire articulates the personal impact, stating, “[02:18] Reba McEntire: Target. The boycott is forever for ever. I have rerouted my shopping needs to other places.”

Further intensifying the movement, a civil rights lawyer in Minneapolis spearheaded a nationwide boycott outside Target's main offices. Reba McEntire emphasizes, “[02:32] Alex Osola: Turn this boycott into a breakup.”

Prominent figures joined the cause, including Nina Turner, a former Ohio state senator, and a Baptist pastor from Atlanta, each rallying significant numbers to cease patronage of Target.

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Understanding Target's DEI Commitment

[04:08] Sarah Nassauer, a Wall Street Journal reporter covering Target, provides an in-depth analysis of the company's DEI history. She explains that Target’s commitment was not merely altruistic but a strategic business imperative aimed at fostering innovation and attracting a diverse customer base.

Nassauer notes, “[04:48] Sarah Nassauer: One reason that consumers seem to be more bothered by the fact that Target did a thing that other retailers have also done is that Target has been more progressive in a lot of its like its brand...”

This deeper integration of DEI made the rollback appear more personal and dissonant compared to competitors like Walmart, which had a different demographic and corporate culture.

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Timeline of Target’s DEI Efforts and Reversals

Target's DEI Evolution:

• 1977: Mission statement emphasizes respect and being a good neighbor.
• 2020: Enhanced focus on inclusivity with initiatives like a task force on racial equity and significant financial commitments to Black-owned businesses.

[13:14] CEO Brian Cornell highlighted the company's dedication: “[13:14] Reba McEntire: Our team is passionately demanding equity and justice for our black colleagues and guests...”

Competitor Actions:

• Deere and Walmart also scaled back DEI initiatives under political pressure, but Target's earlier and more visible commitments made its subsequent rollback more impactful.

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Public Incidents Triggering Boycott

[16:48] Sarah Nassauer recounts specific incidents that ignited consumer outrage. In May 2023, Target launched a Pride merchandise line, including a controversial transgender-friendly swimsuit. Misinterpretations about the product's target audience led to vandalism and threats against store employees, culminating in Target withdrawing certain items for staff safety.

[17:34] Nassauer explains, “[17:34] Sarah Nassauer: And then Target made an announcement that they were going to pull back on that collection.”

Marketing Professor Americus Reid comments on the fragility of brand trust: “[18:10] Reba McEntire: Again, it points to the importance of you spend so much time and effort trying to create that brand and how it can so easily be undermined if you make some mistakes.”

Impact on Target’s Business and Reputation

[18:30] John Zelaitis, an investment analyst, observes that initial investor reactions were negative, citing four consecutive quarters affected by the backlash against the Pride collection.

However, Michael Baker from DA Davidson offers a contrasting viewpoint, suggesting that long-term investor sentiment remained largely unchanged, with the DEI pivot seen as an adaptable business strategy rather than a core detriment.

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The 2025 Backslide and Escalating Boycotts

[20:38] In January 2025, Target made a significant policy reversal by ending its workforce diversity and supplier diversity programs, and winding down racial equity initiatives. This decision coincided with a political climate increasingly hostile to DEI programs, epitomized by President Trump's executive order ending government DEI programs.

Sarah Nassauer notes the breadth of Target's rollback, including disengagement from LGBTQ organizations.

Reba McEntire underscores the emotional betrayal felt by consumers: “[21:02] Reba McEntire: If it turns out that you're not going to stand up when it's time to be pressure tested around, well, is this really your mission and vision?”

The fallout was immediate, with calls for a nationwide boycott spearheaded by activists like Nina Turner and religious leaders advocating for targeted fasting from the brand.

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Conclusion and Teaser for Part 2

Alex Osola concludes the episode by highlighting the paradox of Target's longstanding DEI commitment being met with severe backlash upon retraction. The episode sets the stage for continued exploration in Part 2, promising to examine the ongoing effects of the boycott on Black-owned businesses and Target's financial health.

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Notable Quotes

• Reba McEntire: “[02:18] Target. The boycott is forever for ever. I have rerouted my shopping needs to other places.”
• Sarah Nassauer: “[04:08] Like a lot of large companies, Target talked about diversity as something that they hope to focus on more...”
• Americus Reid: “[18:10] ...trust is formed in droplets but can be lost in bucketfuls.”
• Reba McEntire: “[21:02] ...it's time for everybody to stand for it.”

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Looking Ahead

The first part of this series sets a comprehensive foundation for understanding the intricate dynamics between corporate DEI initiatives and consumer activism. The forthcoming episode promises to delve deeper into the economic repercussions for Target and the broader implications for minority-owned businesses reliant on partnerships with major retailers.

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For listeners who missed the episode, this summary encapsulates the pivotal moments and discussions that highlight the delicate balance between corporate policies and consumer loyalty in the evolving landscape of diversity and inclusion.

Transcript

[Reba McEntire]

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[Alex Osola]

February 2024 through January 20. It's Sunday, May 18th. I'm Alex Osola for the Wall Street Journal. This is a special episode of what's New Sunday. On a recent Sunday afternoon, I, along with producer Jess Jupiter, visited a Target store in Brooklyn. So we're here in Atlantic Terminal standing in front of the Target. There are a lot of people coming in and out. It's Sunday, it's nights out, New Yorkers are happy, and the store is kind of hopping.

[Reba McEntire]

I say it's booming.

[Alex Osola]

Ye. All right, all right.

[Reba McEntire]

Let's go check it out.

[Alex Osola]

Let's go. We took a walk around the store to get a sense of what was going on. People were waiting to try on clothes and grabbing seasonal items for Easter. Near the registers, we did my favorite thing, looking into people's carts to check out their haul organization. Cleaning snacks. Snacks, yeah. Not so many clothes actually. We talked to a few customers outside the store. What do you buy?

[Reba McEntire]

Everything.

[Alex Osola]

Uh huh. Go on. Like literally everything we bought, you know.

[Reba McEntire]

Some milk, some diapers for her.

[Alex Osola]

I just needed a really cheap, like, hamper. There's this one I Target. I just want it. I just need it. But we weren't really there to shop. We were there to see how many other people were there to shop. See. A few days into the Trump administration, Target dropped some of its goals for diversity, equity and inclusion and ended its program to boost black suppliers. At the time, the company said that it was making the moves with the goal of driving growth and staying in step with the evolving external landscape. As a result of Target dropping its DEI goals, a number of customers have said they are no longer shopping there. It was all over TikTok.

[Reba McEntire]

Target. The boycott is forever for ever. I have rerouted my shopping needs to other places.

[Alex Osola]

Target, y' all have messed up so.

[Reba McEntire]

Bad that y' all have managed to.

[Alex Osola]

Turn this boycott into a breakup. It's not just individuals either. A civil rights lawyer out of Minneapolis launched a nationwide boycott right outside Target's main offices. A Baptist pastor at a predominantly black church near Atlanta says that by easter he got 200,000 people to commit to stop shopping at Target. And Nina Turner, a former state senator from Ohio, organized a boycott too.

[Reba McEntire]

The message is there is power in your purchase, that we will form solidarity one to another and let corpor like Target know that we will not shop where there is not leadership when it comes to diversity, equity and inclusion.

[Alex Osola]

So what's got them so upset? After all, Target was one of many companies that changed its policies and language around DEI in the past year under pressure from conservative activists and later perceived legal threats from the Trump administration. Last July, farm equipment seller Deere said it would remove socially motivated messages from company training materials and policies. I reached out to Deere for comment, but didn't hear back. In November, Walmart announced that it was winding down its nonprofit center for Racial Equity. A Walmart spokesman told me that the company's five year commitment made in 2020 will be fulfilled. But for years, Target had made inclusivity a key part of its story, how it communicated to customers and how it differentiated itself from competitors. Sarah Nassauer covers Target for the Journal.

[Sarah Nassauer]

Like a lot of large companies, Target talked about diversity as something that they hope to focus on more. They wanted more diversity. And it wasn't just about like doing good. It was a business imperative. This idea that if you have more diverse viewpoints on your team, you're gonna come up with better ideas, it's gonna be more equitable in terms of who gets jobs at the company. Retailers are a consumer facing business, right? You're going to be able to attract a more diverse customer base because you'll have people coming up with ideas that reflect your customer base. That sort of is in general how they and lots of other companies have talked about it over the years.

[Alex Osola]

And so while many other companies have retreated from their DEI commitments in recent months, Target's customers say this DEI rollback felt personal.

[Sarah Nassauer]

One reason that consumers seem to be more bothered by the fact that Target did a thing that other retailers have also done is that one Target has been more progressive in a lot of its like its brand, its marketing, how it talks about progressive issues, even its own employee base, right? Target is based in the Twin Cities in Minnesota. It's a more progressive community that tends to vote blue versus Walmart, one of its big competitors, which is in northwest Arkansas, which tends to vote red. So even its own employees sort of felt probably, and some of its customers like it was a more jarring change coming from Target than say a Walmart.

[Alex Osola]

Customers from different races all over the country say they felt this deeply. This was a company that actually.

[Reba McEntire]

Aligned with my moral values. So when I heard that, it's almost like it was a gut punch. And then last year, it seemed like things just started to get, you know, how somebody change up on you?

[Alex Osola]

What do you call it?

[Reba McEntire]

Switch up. That's what I felt. I felt some switching up. You can't lie to our population and expect us to come spend our money with you. You know, it's not fair. We're not doing it. It's time to stand and it's time for everybody to stand for it.

[Alex Osola]

We reached out to Target for a comment and they responded with a written statement. We are absolutely dedicated to fostering inclusivity for everyone, our team members, our guests and our supply partners. To do that, we're focusing on what we do best, providing the best retail experience for the more than 2,000 communities we're proud to serve. On this two episode series, we're zooming in on Target. With the company due to report its first quarter earnings this week, we dive into what impact the ongoing boycotts could have on its bottom line. At a moment when so much of corporate America is drawing back from dei, why does there seem to be a bullseye on Target? How is this affecting the company's business and the black entrepreneurs relying on sales from Target's shelves? And for the customers who have been put off by Target's shift, what can the company do to win them back? More after the break.

[Reba McEntire]

Isn't home where we all want to be? Reba? Here for realtor.com, the Pro's number one most trusted app. Finding a home is like dating. You're searching for the one. With over 500,000 new listings every month, you can find the one today. Download the realtor.com app cause you're nearly home. Make it real with realtor.com Pro's number one most trusted app based on August 2024 proprietary survey. Over 500,000 new listings every month based on average new for sale and rental.

[Alex Osola]

Listings February 2024 through January 2025. Before we get into the boycott, let's talk about how we got here at Target.

[Reba McEntire]

We're serious about defending your budget, doing whatever it takes to reject high prices. Target Expect more, pay less.

[Alex Osola]

Target was founded in 1962, an offshoot of Dayton's, a Minneapolis based department store. Target's positioning in the market was for discount goods. Even now, with almost 2,000 US stores and more than 400,000 employees, it still shares some of that early DNA. Joe Feldman is a senior managing director at brokerage firm Telzy Advisory Group where he analyzes big box retailers.

[Reba McEntire]

Target comes to market by leading with its discretionary assortment, specifically apparel and the home area. They have a very high proportion of private branded goods and so they are very good at being on trend and being fast followers of trend and bringing that into the store at discounted prices. That core middle to upper income consumer is their core traditional shopper. I think it's a very diverse shopper as well. They're very broad based and I think they capture a broad range of customers.

[Alex Osola]

Target also distinguished itself from other discount retailers by focusing on inclusivity. In 1977, when the company's mission statement was first published, respecting the people who shop at Target stores and being a good neighbor were some of the values it listed.

[Reba McEntire]

I thought Target was smart and early on going after a more diverse customer base. And you know, you saw it with their inclusivity of different size mannequins. Their core customer was across different ethnicities. And I think they were trying to provide apparel and home furnishings that would support those customers. So it made sense that they were trying to lean in on this DEI effort through the years and they've always had that in their DNA.

[Alex Osola]

Starting in 2020, Target put even more emphasis on inclusivity. And if you look at the makeup of their customers, it makes sense. A profile of Target shoppers by Consumer Insight company Numerator shows that people who shop at target are 1% more likely to be black, 11% more likely to be Hispanic, and 15% more likely to be Asian than the general US population. Its staff, too is more diverse than the country as a whole. Target's 2023 diversity report showed that 56% of its workers are people of color, with 15% of its staff identifying as black. The company said it wanted to boost representation of people of color among both its customers and its staff. Implementing new policies around diversity, equity and inclusion, or dei, was one way to go about it. The term DEI gained national attention after the protests following George Floyd's murder pushed institutions to reckon publicly with racial inequality.

[Reba McEntire]

Overnight, Minneapolis on fire. Protesters leaving an auto parts store in flames. Others seen looting a local. Target.

[Alex Osola]

Tonight was a different night of protesting. WSJ reporter Sarah Nassauer recalls that Target in particular got extra attention during this time.

[Sarah Nassauer]

Target was really a company in the spotlight after George Floyd's murder in 2020 because that event happened in their hometown where they're headquartered and one of their oldest stores. On Lake street in south Minneapolis was damaged in the riots afterwards, and they rebuilt that store and did a lot of press around it.

[Alex Osola]

Analyst Joe Feldman said he wasn't surprised that Target made this DEI push.

[Reba McEntire]

I didn't feel like 2020 was some big shift for Target. I feel like they had always been, you know, really leaning into a more diverse customer base and trying to appeal to everybody and not be discriminatory in any way. And that also came at a time when inclusivity across all various forms was really starting to pick up a lot of momentum in the US Broadly speaking. So Target was there and really did lean in.

[Alex Osola]

For years, organizations including governments, universities and companies have been looking to increase the participation and representation of people in minority groups. There was affirmative action, equal opportunities and pushes for race blindness. DEI was intended to build on those racial equity efforts, but more recently, the Trump administration has described DEI initiatives as discriminatory and a waste of money. The Wall Street Journal previously reported that Target linked its business to inclusion efforts in part because themed merchandise collections for events such as Pride or A Black History Month sold well. In an earnings call on August 19, 2020, Target's CEO Brian Cornell spoke about how the company was rising to the moment.

[Reba McEntire]

Our team is passionately demanding equity and justice for our black colleagues and guests. We are united in that passion and committed to supporting our team while playing an active role in addressing the persistent racial injustices that have sparked protests around the world.

[Alex Osola]

Target also committed to taking steps to be more inclusive. One early promise creating a task force focused on racial equity.

[Reba McEntire]

We've also formed a committee called reach, consisting of senior leaders who have come together based on their experience and expertise. Together they represent a broad enterprise view and their work is focused on advancing racial equity for our black team members and guests across all areas of Target's business.

[Alex Osola]

Some of Target's other promises included dedicating millions of dollars towards national social justice initiatives, launching an accelerator program for black entrepreneurs, increasing representation of Black employees by 20%, and investing more than $2 billion in Black owned businesses by the end of 2025. Target's competitors also made commitments to racial justice. In the Aftermath of George Floyd's killing, Walmart pledged $100 million to create a center for racial Equity to, quote, address the root causes of gaps in outcomes experienced by black people. And in a message to employees, Costco's CEO at the time said the company remained committed to building a diverse workforce. The company also committed $25 million to an investment fund designed to improve economic opportunity for black Americans. According to several analysts I spoke with. Target's investment in DEI didn't change much for investors at the time. They thought it was on brand for the company or didn't stand out against the broader landscape of other companies making such commitments. Financially committing to underrepresented groups didn't seem like it would make a big difference to the company's bottom line until it did. Americus Reid is a professor of marketing at the Wharton School and also counsels companies on the benefits and risks of putting forth an ideology.

[Reba McEntire]

The general consensus in the research is that you either have to stay out of it completely or you have to be all in, no matter what. And I think the big mistake for Target really was kind of going in and presenting itself, hey, we are advocates of DEI and the policies that are associated with it, and then pulling back and saying, okay, well, wait a minute, maybe we're not.

[Alex Osola]

So Target, like many other companies, set new goals to increase diversity, but that didn't go as smoothly as the company had hoped. More after the break.

[Reba McEntire]

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[Alex Osola]

So in 2020, Target had made public promises to boost inclusivity. By the summer of 2023, that commitment got put to the test. Here's WSJ Sarah Nassauer Again, there was.

[Sarah Nassauer]

A incident where they put out their annual sort of Pride merchandise collection that June, and there was backlash from conservative activists and shoppers about that collection.

[Alex Osola]

Starting in May of that year, Target released a variety of Pride themed merchandise as it had for a number of years before. One product in particular, a transgender friendly swimsuit, sparked criticism among social media commenters who thought it was for children. Target said the swimsuit was only available in adult sizes. Customers offended by these products knocked down displays, threatened store employees, and put posts on social media with video from inside stores.

[Sarah Nassauer]

And then Target made an announcement that they were going to pull back on that collection.

[Alex Osola]

Pulling back meant removing some items from stores and moving merchandise from the front to the back. Target leadership said that they made those decisions out of concerns for the safety of its staff.

[Sarah Nassauer]

And then that had its own backlash from people that felt that that was a betrayal of their support of the LGBTQ community.

[Alex Osola]

Target was under pressure in its effort to appease conservative shoppers offended by the collection. It created distrust among LGBT customers. Here's marketing Professor Americus Reid.

[Reba McEntire]

Again, it points to the importance of you spend so much time and effort trying to create that brand and how it can so easily be undermined if you make some mistakes. It's sort of like this idea that, you know, trust is formed in droplets but can be lost in bucketfuls.

[Alex Osola]

John Zelaitis, an analyst and president and founder of investment advisory firm Quo Vadis Capital, follows the discount retail space. He says that investors felt the impact. In the short term, investors are going.

[Reba McEntire]

To be a bit agnostic about the values and the messaging, but they're going to be quite reactive to actual changes in fundamental performance on the business. And that happened. There were four quarters that were negatively impacted by the reaction to the Pride collection.

[Alex Osola]

But Michael Baker, managing director and head of consumer research at investment firm DA Davidson, says that in the long term, the episode around the Pride merchandise didn't change much for investors.

[Reba McEntire]

They, like a lot of retailers, we think, are in a little bit of a tricky situation where they're trying to appease and please many different constituents. But they did make a pivot. And so we think they sort of adapted well to that issue. And so that in and of itself, their focus on DEI or other kinds of initiatives didn't really change our view of the company for the longer term.

[Alex Osola]

Fast forward to January 2025, when Target's DEI efforts were put to another test. Anti DEI activist Robby Starbuck had made the company a focus in the months before. The day Donald Trump was sworn in as president, he signed an executive order Ending Government DEI Programs. A few days later, on January 24, Target announced a, quote, evolution of its inclusivity strategy. Target said that throughout 2025, it would be ending its workforce diversity programs, it's stopping its supplier diversity programs, and it's concluding its racial equity action and change initiatives. Here's WSJ reporter Sarah Nassauer again.

[Sarah Nassauer]

And it went beyond that, right. There was also a reversal of their engagement with the Human Rights Commission, which is an LGBTQ organization. And that mirrors things that have happened at many large companies over the last year or so.

[Alex Osola]

At the time, the company said that it was on track to meet the goals set out in the 2020 pledge and that some of its diversity initiatives had already been scheduled to conclude this year. It also said that it will complete its $2 billion commitment to invest in black owned brands and businesses in 2025 as planned. But to some consumers, it felt like a betrayal. Here's marketing Professor Americus Reid.

[Reba McEntire]

If it turns out that you're not going to stand up when it's time to be pressure tested around, well, is this really your mission and vision? So to backtrack is basically saying that you're a liar and it's probably going to emotionally hit a lot of consumers in a way that says, you know what, I'm going to potentially boycott this brand.

[Alex Osola]

And boycott they did. Less than a week after Target's announcement, activists in Minneapolis, where Target is based, announced a national boycott. At the same time, Nina Turner, a former Ohio state senator and founder of the pro labor nonprofit We Are Somebody, also called for shoppers to boycott Target.

[Reba McEntire]

We Are Somebody is calling for a total boycott of Target stores nationwide starting February 1st until Target reinstates the programs or or replaces them with initiatives ensuring black and other minority brands will not disappear from their shelves.

[Alex Osola]

Then towards the end of February, a pastor outside Atlanta announced a Target boycott during Lent, the Christian time of repentance. I am calling the conscientious Christian community.

[Reba McEntire]

All over this country.

[Alex Osola]

The conscientious Christian community all over this country.

[Reba McEntire]

I am calling for a full 40.

[Alex Osola]

Day fast from target. So Target spent decades showing its diverse customer base that it gets them. Then according to some rolling back DEI showed that it really didn't. Stick around for the next episode where we'll dive further into the boycotts, the black owned businesses affected by them, and how all of this might be having an impact on Target's business now and potentially into the future. Episode two is in your feed now.