WSJ What’s News: Boycotting Target, Part 2: Is Its Business Paying a Price?

Release Date: May 18, 2025

Introduction

In the second installment of WSJ's special series on Target and the ensuing boycotts, host Alex Osola delves deeper into the ramifications of Target's rollback of its Diversity, Equity, and Inclusion (DEI) policies. This episode explores the origins and evolution of the boycotts, their impact on Target's financial health, and the effects on black entrepreneurs partnered with the retail giant.

Background: Target's DEI Policy Rollback

Alex Osola sets the stage by revisiting Target's commitment to inclusivity, which had been a cornerstone of its brand identity. In January, the company announced changes to its DEI policies, prompting dissatisfaction among certain shopper segments.

Alex Osola [00:17]: "When Target changed its diversity, equity and inclusion policies in January, it made some shoppers unhappy."

Target responded to the backlash with a firm stance on maintaining inclusivity, emphasizing their dedication to serving over 2,000 communities.

Target Spokesperson [01:07]: "We are absolutely dedicated to fostering inclusivity for everyone... providing the best retail experience for the more than 2,000 communities we're proud to serve."

The Emergence of Boycotts

Following the policy changes, several boycotts were initiated across the United States, spearheaded by prominent figures within the black community.

Target Fast: A Unified Front

The most prominent boycott, known as Target Fast, was launched by Jamal Bryant, senior pastor at New Birth Missionary Baptist Church in Stonecrest, Georgia. The boycott was characterized by four primary demands aimed at restoring Target's DEI commitments and supporting black-owned businesses.

Jamal Bryant [01:32]: "Not since the Montgomery bus boycott has black America come together in such a unified vision, a unified focus and a unified front."

The boycott began on March 5th and was initially set to conclude on April 20th. However, as Target seemingly did not meet all demands, the movement extended indefinitely.

Jamal Bryant [03:45]: "So the fast shifts to a full out boycott."

Broader Coalition Efforts

Target Fast organizers collaborated with other activists, including Nina Turner, former Ohio state senator and founder of We Are Somebody, and civil rights lawyer Nekima Levy Armstrong, to amplify their efforts.

Nina Turner [05:29]: "The message is that we're all in this together... Just don't shop at Target."

Impact on Target’s Business

The central question addressed is whether these boycotts are financially denting Target's operations. Target has remained reticent, providing no direct comments on the economic impact of the boycotts.

Analyst Insights

Bill Kirk from Roth Capital Partners observes that Target's sales saw a 5% decline in Q2 2023, aligning with historical data indicating that initial boycotts can impact revenues.

Bill Kirk [10:42]: "Target's sales declined about 5%."

Morningstar analysts monitor online sentiment and foot traffic data to gauge the boycott's effectiveness. Early indicators show a 6.5% drop in foot traffic in March compared to the previous year, contrasted with a 16% rise in competitor Costco.

Joe Feldman [13:27]: "You've seen a fairly sizable drop off in their traffic... it does feel like it's been a little bit softer."

Stock Market Reactions

Target's stock has plummeted by approximately 27% year-to-date, marking its worst performance since 1973.

Michael Baker [10:57]: "We think there's a lot of bad news priced in."

Despite this, some analysts like Michael Baker remain bullish, believing the stock is undervalued and poised for future growth.

Entrepreneurs Affected by the Boycotts

Black business owners who supply products to Target have felt the brunt of the boycotts, raising concerns about their sustainability and future partnerships.

Houston White: Navigating Challenges

Houston White, whose brands Get Down Coffee Company and Fresh by Houston White are featured at Target, reports a dip in sales but maintains a positive relationship with the retailer.

Houston White [22:35]: "We still are doing fine and we'll weather the storm."

Beautiful Curly Me: Resilience Amidst Decline

Zoe Oli, CEO of Beautiful Curly Me, a company producing dolls with black and brown hair textures, has observed a significant decline in sales but remains hopeful about future collaborations.

Zoe Oli [23:21]: "We have a good relationship with our Target rep and even hope to expand our partnership in the future."

Lamique Beauty: Grassroots Support

Kim Roxy, founder of Lamique Beauty, emphasizes increased community-level support despite online sales challenges.

Kim Roxy [24:32]: "We're seeing better awareness from like a community level, more grassroots."

Expert Analysis: Effectiveness of Boycotts

Braden King, a marketing professor at Kellogg School of Management, provides a nuanced perspective on the efficacy of boycotts, suggesting that their impact is often more about reputational damage than immediate sales loss.

Braden King [15:33]: "Boycotts do work, just not in the way that most people think."

Target's strategy appears to focus on minimizing media attention and allowing the boycott's prominence to wane over time.

Target Spokesperson [15:54]: "One strategy they might take is simply to wait it out..."

Additional Challenges Facing Target

Beyond boycotts, Target faces other significant challenges such as tariffs and economic headwinds:

Joe Feldman [17:33]: "I'm much more worried about tariffs and the impact that that might have on their business and the broader consumer environment."

Target imports more products internationally than competitors like Walmart, making them more susceptible to tariff-induced cost increases.

Sarah Nassauer [18:41]: "Target sources the most product internationally. They import the most stuff more than even Walmart."

Future Outlook

Despite current adversities, most analysts remain optimistic about Target's long-term prospects. Target is scheduled to report its quarterly earnings on May 21st, with industry expectations accounting for the ongoing boycotts and market conditions.

FactSet Analysts [25:21]: "13 ratings firms said Target stock was worth buying, 23 thought it was worth holding onto and one recommended selling last week."

Target CEO Brian Cornell reaffirmed the company's commitment to its core values in a recent staff email, signaling resilience amid the turmoil.

Target Spokesperson [27:09]: "We will always be dedicated to serving millions of guests in all 50 states... our values, inclusivity, connection, drive are not up for debate."

Conclusion

The boycotts against Target have undeniably stirred significant unrest among consumers and impacted the company's financial health to some extent. However, the true extent of the economic repercussions remains uncertain as ongoing analyses and future earnings reports will shed more light. Meanwhile, black entrepreneurs associated with Target grapple with the immediate effects but remain hopeful for sustained partnerships and community support. As Target navigates these challenges, its ability to uphold its values while addressing shareholder and community concerns will be pivotal in shaping its future trajectory.

Notable Quotes with Timestamps

• Jamal Bryant [01:32]: "Not since the Montgomery bus boycott has black America come together in such a unified vision, a unified focus and a unified front."

• Nina Turner [05:29]: "The message is that we're all in this together... Just don't shop at Target."

• Jamal Bryant [15:54]: "So boycotts tend to be effective not because they have an effect on consumer sales, but rather because they create a lot of negative media attention for the company."

• Joe Feldman [17:33]: "I think in the big scheme of headwinds against Target, boycotts ranks lower."

• Target Spokesperson [27:09]: "Our values, inclusivity, connection, drive are not up for debate. They are non negotiable, period."

Production Credits

This series was produced by Alex Osola with supervising producer Michael Kosmides. Additional support came from Falana Patterson, Chris Zinsley, and Anthony Banci. Sound design was handled by Michael Lavalle and Jessica Fenton, with theme music composed by them as well. Aisha Al Muslim served as the development producer, and Scott Salloway along with Chris Inslee were the deputy editors. Falana Patterson also serves as the Wall Street Journal's head of news audio.