by Stacy Jackson
March 18, 2025
During a four-week period, Costco saw an increase in shoppers by over 7 million compared to Target’s decrease by nearly 5 million.
Black and Hispanic shoppers are seemingly spending their dollars at Costco these days, while retailers like Target are reportedly seeing a decline in store visits.
Analytics firm Numerator stated in a March 5 report that the shift in store traffic may be linked to retailers’ adjustments to DEI initiatives. “Black and Hispanic households appear to be reducing visits at disproportionately high rates in the weeks following Target’s DEI rollback,” the report states. “Meanwhile, Costco — maintaining a strong DEI stance — has attracted many of these same consumers.” In year-to-year visits, Target saw a decline in nearly five million shoppers during a four-week period that ended Feb. 9. For Costco, the big-box store corporation saw an increase of 7.7 million visits.
The decline in Target’s traffic may reflect its decision to switch things up on customers. One-third of survey respondents knew about the Feb. 28 economic blackout. “That kind of seesawing back and forth and saying one thing and doing another, that’s what gets brands like Target in trouble,” said Collage Group’s chief insights officer, David Albert, according to Business Insider. “We’ve seen here, especially with Target, is that they’ve eroded that trust.”
Target announced its decision to roll back its DEI initiatives on Jan. 24, BLACK ENTERPRISE previously noted, after President Donald Trump’s order following his inauguration to cease DEI programs. According to a companywide memo, the retail giant stated the changes would better align with the Target consumer base. The retail giant has faced boycotts due to its recent decision. During a Jan. 30 news conference, civil rights attorney Nekima Levy Armstrong stood outside the retailer’s Minnesota headquarters and called for a nationwide boycott to begin on the first day of Black History Month. Keeping the momentum, New Birth Missionary Baptist Church Pastor Dr. Jamal Bryant announced a 40-day fast from Target, which commenced on March 5. In a press release obtained by BE, the pastor urged 100,000 Black shoppers to “halt all purchases” and “divest any stock holdings” in the company.
Costco, on the other hand, has stood firm on its DEI commitments. “Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,” the wholesaler’s board wrote in a memo, per The Independent. Costco CEO Ron Vachris urged shareholders to support the wholesaler’s commitment to DEI initiatives, which he believes is a contributing factor to boosting profits.
For retail corporation Walmart, performance remained consistent during the examined four-week period. The report suggested that even though Walmart also rolled back DEI initiatives, such strategies were never a central focus.
RELATED CONTENT: Idaho Teacher Ordered To Remove ‘Everyone Is Welcome’ Sign From Classroom Over DEI Issues
GIPHY App Key not set. Please check settings