Target faces a continued balancing act as it responds to backlash over DEI pullback
Despite continued activist pressure and some shoppers still refusing to shop at the company’s stores, Target has yet to apologize for how it pulled back on some diversity, equity and inclusion-related goals, programs and initiatives.
Target did not mention the issue on its second-quarter earnings call, in which it introduced its next top executive. During the call, incoming CEO Michael Fiddelke shared his three top priorities for the business, none of which addressed diversity, equity or inclusion. Instead, Fiddelke said he would reestablish Target’s distinct “merchandising authority,” including in popular categories like trading cards; elevate the store experience more consistently; and frequently and more fully use technology to improve speed, guest experience and efficiency. This suggests that Target, at least publicly, isn’t keeping this issue at the forefront, when racial equity was previously a tentpole of its brand. In January, Target told employees in a memo that it was rolling back some of its DEI programs, leading to much debate over the past few months about what exactly Target stands for.
While DEI wasn’t mentioned in its three priorities nor brought up at all on the call with investors, the company has not been entirely silent over the past few months, particularly on the issue of inclusion. In July, current CEO Brian Cornell wrote an opinion piece in Essence, writing that the company’s commitment to “opportunity for all and inclusion is unwavering,” and that the values are foundational to how the company serves its guests, supports its team and grows the business.
“Over the past few months, you may feel like you’ve heard more about Target than you’ve heard from Target,” Cornell wrote. “And that’s fair. I’ve been listening to our team, our partners, our guests and our communities; thank you for your honesty, your feedback and your patience. Let me be clear: Our commitment to opportunity for all and inclusion is unwavering. These values are foundational to how we serve our guests, support our team and grow our business.”
He added that the company will complete its commitment to invest $2 billion in Black-owned businesses this year, more than doubling the number of Black-owned brands on its shelves; that it will complete its $100 million investment in Black-led community organizations; and that it has supported thousands of students at more than 20 Historically Black colleges and universities (HCBUs). He also said the company has supported more than 500 entrepreneurs through its Accelerator program and has provided tuition assistance to more than 30,000 team members, though neither of these initiatives is specifically tailored to underrepresented groups.
Still, some of these promises date back to 2021, when Target made major commitments to Black-owned brands. The steps that Target has taken to complete these commitments have taken place over the course of years, not just in 2025.
The company also mentioned in its annual report to investors in April that its announcement on DEI “resulted in adverse reactions from some of our shareholders, guests, team members and others,” and could lead to adverse perceptions of the business, consumer boycotts, litigation, investigations and regulatory proceedings.
What has muddled the issue is the fact that, while Target has remained consistent in talking about some values, like inclusivity, it has also avoided language that some activists and shoppers want to see, like diversity and equity. In May, Cornell wrote in a letter to staff that Target’s values — which he said consist of inclusivity, connection and drive — “are not up for debate.” As examples of these values, he cited how the company promotes many of its leaders from within, offers adaptive clothing for “kids of all abilities” and beauty products for “every skin tone and hair type,” and has pursued partnerships with “diverse entrepreneurs,” along with marketing choices that reflect all of its guests.
Why Target is still in the spotlight
Target’s long history on the issue has placed a different type of pressure on it than other retailers. Walmart and Tractor Supply have also rolled back many DEI initiatives but have not seen the same level of backlash, said Christy Pruitt-Haynes. Pruitt-Haynes, a consultant and public speaker, has worked in human resources and DEI strategy for almost 30 years, including for the Memphis Grizzlies, Paramount predecessor Viacom and automaker Infiniti.
“All parents have told their kids at some point, ‘Don’t start something that you don’t plan on continuing,’ and I think that’s what really got Target into a lot of trouble,” Pruitt-Haynes told Modern Retail. She said the company had really focused on DEI and its importance to the Target brand by selling products from Black- and women-owned businesses, as well as embracing Pride Month in stores.
“They really doubled down on DEI and how important that was to them, and that became part of what the public really looked to Target for,” Pruitt-Haynes said. “It was woven into their culture, and one of the things that obviously attracted a lot of buyers to their store. … When they took that away, it felt like they were completely changing who they were and were directly or indirectly saying to certain demographics, ‘We no longer prioritize you as a customer.'”
Communications and DEI experts — as well as a transgender Target employee who spoke to Modern Retail on the condition of anonymity — found Cornell’s May 2025 letter to staff disappointing for not taking more accountability for how the company responded to backlash. In a statement to Modern Retail in May, a Target spokesperson said: “We are absolutely dedicated to fostering inclusivity for everyone — our team members, our guests and our supply partners. To do that, we’re focusing on what we do best: providing the best retail experience for the more than 2,000 communities we’re proud to serve.”
Pruitt-Haynes said she would recommend that Target discuss publicly how the retailer is fully committed to having items on the shelf that are going to appeal to everyone. That is similar to one thing Cornell said in the employee email — that it has products for every skin tone and hair type. Pruitt-Haynes cited The Lip Bar, a Black-owned makeup brand sold at Target that makes products designed for darker skin tones.
“Everybody wants to walk into a store and buy a greeting card that has a character on there that looks like them. If I’m giving a birthday card to my daughter, I want to have somebody on that card that resembles her,” Pruitt-Haynes said. “They can say, ‘We have products that are going to appeal to everyone,’ without using the same language that they’ve used. And that could be a first step in bringing people back to the store and in doing what I believe they really want to do, ultimately, in having that mass appeal to all potential consumers.”
‘Pride turns to doubt’
In Minneapolis, leaders with the Racial Justice Network, Black Lives Matter Minnesota and the Minnesota chapter of the Council on American-Islamic Relations held a news conference outside Target’s Minneapolis headquarters on Aug. 21 following the CEO announcement, urging the company to reverse course on its decision to roll back DEI policies — arguing that the decision has led to declining foot traffic at the retailer.
“Target took its most loyal customers for granted,” Nekima Levy Armstrong, a civil rights attorney, founder of the Racial Justice Network and co-founder of the national Target boycott, said in a news release. “Instead of standing with communities that have supported them for decades, they chose profits over people — and it has cost them billions of dollars and millions of shoppers who have vowed not to return.”
Of course, the retailer also faces the challenge of decreased discretionary spending in the wake of President Trump’s new tariffs, and it’s unclear what exactly has contributed more to the decline in traffic at its stores. Operational missteps, such as not stocking shelves or staffing the stores properly — as some critics claim Target is guilty of — could have also played more of a role.
Pruitt-Haynes does not recommend the company lean back into DEI in the same way it had in the past, as that would cause a similar level backlash from the opposite political aisle.
“The country is extremely divided, and it’s currently a time that, [in] every move that a company makes, people look for political motives, even when they may not be there,” she said. “What they really have to do is talk about who they are as an organization and make sure they stick to that. It’s when companies make these extreme changes one way or another that it causes a lot of attention to them.”
Walter Holbrook, a retail consultant as well as a former retail executive and buyer for companies including Kmart, Gabes, Kids Outlet and Turner Ace Hardware, said the company should move on from the issue, calling it a “no-win” situation at this point.
“The [typical] Target customer is a little bit more aspirational, a little bit better educated and a little bit more suburban, and the DEI thing meant a lot more to her than it did the Walmart shoppers,” Holbrook said. He added that the company should have followed Costco’s lead in doubling down on its DEI commitments, but that now, doing anything could risk its reputation with people who disagree with DEI. “Values matter. Now, just ride it out. The typical Target customer expected more.”
Still, being silent would also carry risk, said Alejandra Ramirez, founder of Ready Cultures, a consultancy that focuses on internal communication and workplace culture. In August, The Wall Street Journal reported findings from an internal employee survey in June showing that about 40% of respondents didn’t have confidence in the company’s future.
“Employees hear the silence of the signal of shifting priorities,” Ramirez said. “If leadership once championed DEI and now avoids the language, employees may feel that promises have been broken, and that creates cynicism and disengagement.”
She added that, in her opinion, hiring and retention are both going to get harder when employees no longer believe that the company lives its values.
“Employees take pride in working for a company that stands for something,” Ramirez said. “When that stance disappears, pride turns to doubt.”