Target have recently announced via a memo to employees that they will be ending their three year DEI goals, discontinuing their reports to external diversity focused groups, which include the Human Rights Campaign Corporate Equality Index, as well as having plans to pause their programme aimed at increasing products from Black and minority-owned businesses.
This comes as a shock after Target was known to emphasize their alignment within the workforce and their customer base, although many companies are scaling back in America due to political or economic pressures, such a large company to do so will impact so many individuals, and other business communities.
The programme started following the police killing of George Floyd back in 2020, working to promote Black-owned businesses and improve the experience of Black shoppers across their store, however on 24th January they announced the programme would end this year, highlighting that they had always set out to end the programme this year.
The programme ending also comes with them ending their diversity, equity and conclusion, and other goals in relation, that they had previously set.
The other goals include hiring and promoting women, those from minority groups, recruiting diverse suppliers and including businesses that are owned by women, people of colour, LGBTQ+, people with disabilities and veterans.
Other large businesses that have made the same decision or similar to phasing out the DEI include McDonald’s, Walmart and Ford.
Pastor Jamal Bryant joined activists boycotting the large retailer, saying that the company has ”spit in the face of Black people” and refers to the company ”kissing the ring of the president who thinks he is king”.
Although it seems the decision to end and phase out these groups comes from a political stand, it’s making the everyday consumer excluded from not just their own customer experience, but who they shop with and businesses they buy from going forward.
Bryant made it clear in his speech how much money [millions of dollars] Black consumers spend each month at Target. He continued with “We are going to break the spirit of white entitlement. We are going to break the spirit of racism and sexism.”
He has encouraged the idea of boycotting the company, in particular starting with spending the 40 days of Lent, starting on 5th March, doing so.
The memo to employees from Kiera Fernandez, Target’s chief community impact and equity officer has described their decisions as a ”next chapter” and that they plan to create ”inclusive work and guest environments that welcome all”. Fernandez went on to say “Many years of data, insights, listening and learning have been shaping this next chapter in our strategy”
Shareholders have since filed a lawsuit against the large chain making allegations that the retailer ‘misled investors’ about their DEI policies and how it posed to their stock prices.
The City of Riviera Beach Police Pension Fund have also claimed that Target’s stock was ”artificially inflated” due to their lack of relaying the scope of consumer backlash in regards to promoting diversity and LGBTQ+ pride.
Back in 2023, Target launched a campaign from Pride Month which included homeware and clothing items that advertised as celebrating those part of the LGBTQ+ community, they removed some of these items from their stores after misinformation about the promotion by right-wing influencers, which caused their stock prices to be impacted immediately and continued that way throughout 2024.
Accusations that Target issued ”false and misleading” statements about how its social initiatives would impact their stock prices and shareholders also claimed that in they had paid inflated prices for Target stock. The lawsuit will cover all the shareholders who bought Target stock between 26th August 2022 – 19th November 2024.
Their stock prices plummeted towards the end of 2024, with them already facing backlash in 2023 after they advertised and sold ‘tuck friendly’ female bathing suits and displayed them as ‘gender fluid’ as part of their Pride displays.
CEO Brian Cornell and the board of Target also failed to disclose any ”known risks” for both 2023 and 2024 Pride campaigns, which is featured in the lawsuit.
