For the eighth consecutive week, foot traffic at Target stores has declined, marking a troubling trend that began shortly after the company announced changes to its diversity, equity, and inclusion (DEI) program in late January.
There’s a big question: “Do boycotts still work?” If we look only at foot traffic, the answer is yes. According to data from Placer.ai, foot traffic at Target stores during the week of March 17 fell 5.7% year-over-year, following an average weekly decline of 6.2% over the previous eight weeks.
Target’s decision to modify its DEI program signaled a shift in the brand’s investment and prioritization of diversity efforts, which the company has been vocal about in the past, particularly around Black-owned businesses, where it has pledged to spend $2 billion.
They built their brand on inclusion and diversity. Changing course became a real risk, and soon after, a movement began to grow on social media, demanding a one-day shutdown on February 28 against Target, along with other retailers implementing similar DEI changes. That day, Target’s website traffic decreased by 9% compared to the same period the previous year. In the background, Pastor Jamal Bryant launched TargetFast.org, calling on 100,000 responsible citizens to fast from spending money at Target during the 40 days of Lent, from Wednesday, March 5 to April 20 (Easter Sunday). Today, more than 150,000 participants have joined, far exceeding the participation goal.
Pastor Bryant similarly asked people to sell any Target stock they owned. While there is no direct correlation, Target’s (NYSE: TGT) stock price is down 24%, from $137.40 on January 24, the day Target cut its programs, to $104.70 on March 15. During that time, the stock is down 10% since the start of the 40-day period on March 5, accelerating a continued downward trend in its price since the end of 2024.
Tariffs as a new challenge
As if the challenges Target has had to deal with weren’t enough, the company now faces a potential new obstacle: tariffs. On April 3, the stock reached$93, its lowest in 52 weeks, just after President Trump’s tariff announcement on “Liberation Day.”
The tariffs that were recently announced hit Wall Street hard, raising concerns about their impact on global supply chains and retail prices. For retailers like Target, which rely heavily on imported products, these tariffs could exacerbate existing challenges. Increased import costs could force the company to raise prices, further alienating price-sensitive consumers already grappling with inflationary pressures. This could create a vicious cycle, in which decreased foot traffic translates into lower sales, which in turn makes it difficult for the company to absorb the higher costs. The timing of these tariffs is particularly problematic for Target, which is struggling to regain its footing.
Although the company has yet to comment on how it plans to address these challenges, it’s clear that the road ahead will not be easy.
Target conveyed optimism during its March 4 earnings call, where executives highlighted its Easter assortment as a potential sales driver. The question now is whether Target’s annual Circle Week sale, with deals of up to40% off items from March 23-29in physical and online stores, will be able to reverse the trend, or if the damage to your brand’s reputation will be more lasting.
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