 Target has another big problem amid alarming customerbehavior |
Source |
American Shipper |
Post Date |
07/15/2025 |
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The retaileris facing another unexpected threat to its sales.
Target (TGT) ,which has almost 2,000 stores nationwide, is struggling to shake a concerningshift in customer behavior that has significantly impacted its sales forseveral financial quarters.
In Target? first-quarter earnings report for 2025, itrevealed that its comparable store sales dipped by 3.8% year-over-year. Also,according to recent data from Placer.ai,the number of customers visiting Target stores per location shrank by 4.8%year-over-year during the quarter.
The pullback fromconsumers comes at a time when many are battling inflation and are concerned that tariffs will furtherincrease prices for everyday goods. Also, Target recently faced backlash forscaling back its diversity, equity, and inclusion initiatives, which sparkedseveral consumer boycotts.
During an earnings call in May, Target CEO BrianCornell said the company is operating in an ?xceptionally challengingenvironment,?with several factors negatively impacting business.
?or several years now, we?e seen pressure in ourdiscretionary businesses, as sping adjusted down from elevated levels duringthe pandemic and then moved further away in the face of historically highinflation in needs-based categories,?said Cornell.
?n top of those ongoing challenges, we faced severaladditional headwinds this quarter, including five consecutive months ofdeclining consumer confidence, uncertainty regarding the impact of potentialtariffs, and the reaction to the s we shared on Belonging in January.?
Target policy changes have sparked consumer backlash.
Target facesanother major threat amid declining sales
Just last month, Target faced a major boycott fromconsumers, organized by The People? Union USA, for its DEI cuts. Now, anotherbig group is threatening to make a similar move.
On June 26, the Congressional Black Caucus (CBC) met withTarget CEO Brian Cornell to discuss the retailers decision to roll back itsDEI policies in January.
The cuts resulted in Target discontinuing its three-yearDEI goals and Racial Equity Action and Change initiatives, whichlaunched in 2020 and included advancing the careers of Black employees,instituting anti-racism training for staff members, promoting Black-ownedbusinesses, and sourcing products from Black suppliers.
Through these initiatives, Target also pledged to donate $1million to the Congressional Black Caucus Foundation over five years. Since2020, the retailer has donated at least $1.4 million to the foundation.
The CBC said in a recent press release that theconversation with Cornell was ?andid and direct." However, it warned himthat ?fforts to restore consumer and public trust without genuine action andaccountability?would risk causing ?asting damage?to Target? ?rand andcredibility.?
During the meeting, the group demanded that Target recommitto DEI in a public forum and reinstate DEI policies that were ?liminated orrolled back.?
The CBC also demanded an on the status of financialinvestments and other publicly pledged policies, as well as details of Target?workforce diversity, business supplier diversity, and community investment.
However, the CBC is supporting a boycott of Target afterthe conversation with the company? leadership yielded disappointing results.
?ike many of the coalition leaders and partnerorganizations that have chosen to boycott their stores across the country, wefound that the explanations offered by the leadership of the Target Corporationfell woefully short of what our communities deserve and of the values ofinclusion that Target once touted,?said the CBC in the press release.
The CBC also highlighted that Black consumers have asignificant impact on Target? ?ottom line.?
?lack consumers contribute overwhelmingly to our economyand to the Target Corporation? bottom line,?said the CBC. ?ur communitiesdeserve to shop at businesses that publicly share our values withoutsacrificing our dignity. It is no longer accep to deliver promises to ourcommunities in private without also demonstrating those values publicly.?
Target CEO hasrecently been doing damage control
The CBCs boycott threat comes after Cornell has beenramping up his efforts to address the backlash over Target? DEI cuts.
In April, Cornell met with the Rev. Al Sharpton to advertanother potential Target boycott over DEI cuts.
The following month, Cornell also reportedly sent anemail to Target employees acknowledging that it had been ? tough few months,?dmitting that the company? lack of communication amid recent controversy hadled to ?ncertainty.?
He also emphasized that Target? values of ?nclusivity,connection, drive?are ?ot up for debate?and said that the company is?ommitted?to sharing how its values an impact.
?he world around us is noisier and more complicated, butthat doesn? change who we are,?said Cornell.
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