Target (TGT) has had a rough year, and it’s about to get a bit more challenging. The retail giant has suffered backlash from consumers, especially over the past few months, shortly after it decided to scale back its diversity, equity, and inclusion policies in January.
This involved withdrawing its participation in the Human Rights Campaign survey, which tracks LGBTQ+ corporate policies and practices.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵
It also discontinued its three-year DEI goals and Racial Equity Action and Change initiatives, which involved advancing the careers of Black employees, instituting anti-racism training for team members, promoting Black-owned businesses, and sourcing products from Black suppliers.
Related: Target CEO sounds alarm on customer behavior
This decision had a major domino effect, sparking several boycotts from consumers who were frustrated with the change. Amid these boycotts, the foot traffic in Target’s stores dropped.
According to recent data from Placer.ai, the number of customers visiting Target stores started to decline during the week of Jan. 27, and the trend continued over the next two months.
In February, Target’s foot traffic dipped by 9% year-over-year. March showed a slight improvement, but it still declined by 6.50%, compared to the same month last year.
Target even revealed in its first-quarter earnings report for 2025 that its sales recently took a hit. Its comparable store sales decreased by 3.8% year-over-year. Specifically, the number of transactions in stores dipped by 2.4%, while the average amount of money customers spent per transaction declined by roughly 1.4%.
Target faces another major customer boycott.
Image source: Justin Sullivan/Getty Images
Target is staring at another significant threat
Amid decreased sales, Target is now set to face another major boycott from customers, which threatens to exacerbate the retailer’s recent woes.
The People’s Union USA, which organized boycotts of Amazon and Walmart earlier this year, has called for a Target boycott, which will begin on June 3 and end on June 9.
In a recent video posted on Instagram, The People’s Union USA founder John Schwarz said that despite already being boycotted for recent DEI cuts, Target has “had their chance,” and “they’re not doing anything” to respond to consumers’ recent frustrations.
“So, what we are doing between June 3 and June 9, that week, we will be calling for the permanent boycott of Target,” said Schwarz. “Shop anywhere else but Target, and I literally mean that if you’ve got to shop at Walmart or Amazon, places we boycott, instead of Target, do it. Target needs to be shut down, this corporation needs to feel the full power of the people.”
Related: Target CEO admits a major mistake amid boycotts from customers
The People’s Union USA has been organizing “economic blackouts” of large corporations since February. So far, it has organized specific boycotts aimed at Amazon, Walmart, and General Mills. After its Target boycott concludes, McDonald’s is next on its list.
The group aims to “expose corruption and exploitation” and “hold corporations accountable” through these boycotts.
“We’re building a people-powered force that’s not just pushing back, but preparing to take power back from the corporations, the billionaire class, and the political parasites that have been feeding off our work, our wages, and our rights for far too long,” said The People’s Union USA on its website.
Target CEO previously made moves to address outrage
The boycott comes after Target CEO Brian Cornell has made bold moves to address outrage over the company’s recent DEI cuts.
In April, after the Rev. Al Sharpton threatened to organize a Target boycott over its changes to DEI, Cornell agreed to meet with Sharpton to discuss the company’s decision.
After the meeting, Sharpton posted a statement on social media platform X, claiming that his conversation with Cornell was “candid” and “constructive.”
More Retail:
Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior
In May, Cornell also reportedly sent an email to Target employees acknowledging that it has been “a tough few months,” and admitted that the company’s lack of communication amid recent controversy has led to “uncertainty,” according to a report from The Minnesota Star Tribune.
“I recognize that silence from us has created uncertainty, so I want to be very clear: We are still the Target you know and believe in,” said Cornell in the email.
He also emphasized that Target’s values of “inclusivity, connection, drive” are “not up for debate” and said that the company is “committed” to sharing how its values create an impact.
“The world around us is noisier and more complicated, but that doesn’t change who we are,” said Cornell.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
