by Sharelle B. McNair
May 23, 2025
Target’s CEO Brian Cornell blamed the decline on incoming concerns surrounding tariffs in addition to the DEI drawback.
Popular retailer Target admitted that pushback from slashing diversity, equity, and inclusion (DEI) initiatives resulted in a significant plunge in its first quarter sales, dropping more than 7%, Yahoo Finance reports.
The sales announcement came on May 2, revealing a 3.8% year-over-year decline for same-store sales compared to the 3.7% drop from 2024. Target’s CEO Brian Cornell blamed the decline on incoming concerns surrounding tariffs in addition to the DEI drawback. “While we believe each of these factors played a role in our first quarter performance, we can’t reliably estimate the impact of each one separately,” Cornell said.
In January 2025, shortly after President Donald Trump took office, the company said it would dial back on its “Belonging at the Bullseye” strategy that targeted hiring and supplier diversity goals. The changes also eliminated Target’s participation in external diversity-focused surveys such as the Human Rights Campaign’s Corporate Equality Index.
In addition to other companies that scrapped DEI policies like Walmart, McDonald’s, and Amazon, Target, known for its popular Black Beyond Measure Campaign highlighting collaborations with influencer Tabitha Brown, was the focus point of the advocacy group Black Wall Street Ticker, who called for a 40-day “corporate fast” from spending any money at stores between March 5 and April 17.
Protest efforts were supported by community leaders like Atlanta’s Rev. Jamal Bryant and civil rights activist Rev. Al Sharpton, who called for Black consumers to stop spending with the retailer. Bryant said Black customers saw Target as “a friend” since it was once an advocate for DEI programs after George Floyd was killed by a police officer miles outside of the company’s Minneapolis headquarters in 2020. “They hear me. The cash register hears me. Power concedes nothing without a demand,” Bryant said, according to CNN.
“We saw (Target) as a friend. They championed diversity. So, we were in shock and awe when they reversed what is their stance and position.”
Sharpton met with Cornell in April 2025 amid the controversy, with the CEO requesting the face-to-face encounter. The National Action Network founder asked Cornell to confirm the company’s commitment to the Black community and working with Black-owned businesses in the future. “I said, ‘If (Cornell) wants to have a candid meeting, we’ll meet. I want to first hear what he has to say,” Sharpton said.
He came out of the meeting, calling the conversation “constructive and candid.”
While companies like Target and Walmart saw extreme consequences from DEI elimination, including pushback from their own shareholders, companies like Costco, which stood firm on its DEI support, saw an uptick in revenue and foot traffic.
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