Political beliefs increasingly shape how and where people spend their money

The insight: Retailers face a Catch-22 over their DEI policies. Dialing back initiatives invites boycotts—but standing firm does too, as US consumers increasingly choose to vote with their wallets in a highly charged political environment.

Target in the hot seat: No retailer understands this dynamic better than Target, whose approach to diversity, equity, and inclusion has earned the ire of both right-wing activists and campaigners on the left.

• Florida’s pension board has joined a suit against the retailer over its DEI practices. Target is accused of misleading investors about the blowback from its decision to pull some Pride merchandise in 2023, after misinformation campaigns led to threats against stores and employees.
• At the same time, the NAACP and other civil rights activists are urging consumers to boycott the retailer following its decision to roll back DEI initiatives.