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

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.

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.

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.

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.

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.

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.

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.

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.”

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.

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.