Target faces 40-day boycott as it deals with tariffs, economic blackout

The news: Target is facing a 40-day consumer boycott on Wednesday over its step back from diversity, equity, and inclusion (DEI) practices. The boycott, initiated by Atlanta’s Reverend Jamal Bryant and coinciding with the start of Lent, comes at a critical moment for a company that is caught between efforts to meet consumer demands while avoiding conservative and legal pushback.

Zooming out: Target announced in January that it would eliminate previous hiring goals for minority employees and end its executive committee focused on racial equality to remain “in step with the evolving external landscape.”

Combined with the fact that the company is facing boycotts from multiple groups, anticipating cost increases caused by President Donald Trump’s tariffs, and seeing an impact from the economic blackout of February 28—all while dealing with a 3% decline in Q4 sales—a 40-day boycott could have a measurable impact.

While grassroots boycotts don’t typically affect a company’s results, Target is in a unique position because it went further with its DEI efforts than most brands. The company has spent years building a reputation as a DEI leader, prioritizing racial justice and championing LGBTQ issues, attracting a more progressive customer base.

• Target saw 11% fewer customers during the February 28 economic blackout compared with the average number of visitors for the previous five Fridays, per Placer.ai.
• Web traffic also dropped 9% that day, while overall sales declined in February.

What it means for brands and marketers: Beyond sales, boycotts can damage a company’s reputation, putting brands in the spotlight for all the wrong reasons. Target is already facing a reputational drop, going from 73.8 on a 100-point scale in December to 66.3 in January, per RepTrak, coinciding with its DEI pullback.

Marketers need to tread carefully, especially if they are opting to pull back on DEI efforts, and prepare risk mitigation strategies to avoid reputational damage. Shifting advertising strategies to address consumer concerns—or remaining committed to DEI in the face of political pressure, as adults across generations prefer to buy from brands that reflect their values—could help brands stay afloat in an increasingly divisive environment.