How Target’s Shift on DEI Sparked Controversy: The Backlash Explained | CNN Business

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How Target’s Shift on DEI Sparked Controversy: The Backlash Explained | CNN Business

New York — CNN

Target recently faced criticism after announcing it would end some of its diversity, equity, and inclusion (DEI) programs. This move has angered customers, civil rights advocates, and even the heirs of one of its founders.

On January 24, shortly after the Trump administration began, Target revealed plans to abandon its goals for hiring minority employees and disband its racial justice executive committee. The company stated it would focus instead on a new initiative called “Belonging at the Bullseye,” which emphasizes inclusivity but suggests a shift away from its prior commitments to DEI efforts.

Many companies have dialed back their DEI initiatives in response to pressure from conservative groups and government scrutiny. However, few have faced as much backlash as Target. This is partly due to Target’s earlier strong stance on social issues and its more progressive customer base compared to retailers like Walmart and John Deere.

Experts note that Target’s retreat from its DEI policies appears reactive, reflecting the current political climate rather than a genuine commitment. Shreyans Goenka, a marketing professor, explains that when brands flip-flop on social causes, they risk appearing inauthentic.

Following George Floyd’s murder in 2020, Target was seen as a leader in advocating for DEI. The company made bold promises, including increasing its Black workforce and allocating $2 billion to Black-owned businesses by the end of 2025. Target had established a strong reputation for supporting LGBTQ rights as well, advocating for gay marriage long before it became law.

However, recent changes have led some loyal customers to feel betrayed. Critics express confusion over why a company known for its commitment to social justice would suddenly backtrack. A former Target executive mentioned that many feel misled, wondering if the former DEI initiatives were genuinely from the heart or just a marketing strategy.

The fallout is severe. The company’s recent actions have prompted calls for boycotts and led some customers to stop shopping there entirely. Anne and Lucy Dayton, daughters of one of Target’s co-founders, described the shift as “a betrayal” and expressed concern over how it undermines the principles that made Target successful.

MEANWHILE, Target’s shifts have dominated social media discussions. The negative feedback has been overwhelming, with many users calling for consumers to switch to retailers that maintain their DEI commitments. Notably, pastor Jamal Bryant has organized a 40-day boycott, drawing significant support online.

After the announcement, foot traffic to Target stores decreased, marking a notable change from previous weeks of steady growth. Analysts suggest that other factors, such as weather and economic conditions, might also play a part. However, signs indicate that the backlash could affect Target’s bottom line.

While some companies have navigated similar political pressures without significant backlash, Target might not be as fortunate. Their miscalculation regarding customer sentiment reflects a broader challenge companies face when balancing social responsibility with market pressures.

As the situation evolves, many are questioning the long-term impact of this backlash. Previous boycotts, like that against Bud Light, became successful due to the ease of substitution for consumers. In contrast, targeting a retailer like Target, which competes closely with others also rolling back DEI initiatives, may not sustain the same momentum.

The real test for Target lies in how much its core customers align with the recent backlash and how readily they can switch to other shopping venues. The coming months will shed light on whether Target can regain its former position or whether these changes will have lasting consequences.



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