Target, once the darling of the diversity playbook, decided to roll back its Diversity, Equity, and Inclusion (DEI) initiatives. The result? A significant hit to its bottom line and a tarnished reputation.

The DEI Rollback and Its Fallout

In early 2025, Target scaled back its DEI programs, a move that didn’t go unnoticed. This decision led to a consumer boycott, resulting in a 6% year-over-year drop in foot traffic and a 3.1% loss in Q4 earnings . Black-owned brands, like Play Pits, reported a 30% decline in Target store sales, though some saw a rise in direct website sales as consumers became more intentional about their purchases. 

Target CEO Pay Cut Amid Financial Struggles

Target’s CEO, Brian Cornell, saw his compensation drop by 45% to $9.9 million in 2024, reflecting the retailer’s financial challenges . While still a substantial salary, it underscores the broader impact of the company’s strategic missteps.

The Customer Experience Decline

Beyond the financials, the in-store experience has suffered. Customers have noted a decline in product quality and store layout. Additionally, many products are now locked up, requiring assistance to access basic items like body wash, leading to longer wait times and frustration.

The Importance of Black Consumer Spending

Black consumers wield significant spending power, particularly in beauty and personal care. The rollback of DEI initiatives and the subsequent decline in support for Black-owned brands signal a disconnect between Target and a vital customer base.

These Are The Car Facts

Target’s decision to retreat from its DEI commitments has had tangible consequences. The financial losses, coupled with a deteriorating customer experience, highlight the risks of sidelining diversity and inclusion. Brands must recognize that supporting all communities isn’t just ethical, it’s essential for sustained success.