Target has faced ongoing challenges in recent years as it works to bring customers back to its stores. The company’s decision in January to reduce its diversity, equity and inclusion (DEI) policies led to significant consumer boycotts and further declines in sales.
Following the policy changes, Target reported a 3.8% year-over-year drop in comparable store sales for the first quarter of 2025. Data from Placer.ai indicated that customer visits per Target location fell by 4.8% during the same period.
In June, Target announced plans to keep prices steady on essential back-to-school supplies despite rising inflation and tariffs. The retailer offered more than 1,000 back-to-school items priced under $5 and promoted discounts for teachers and college students through its Target Circle app.
However, these measures did not lead to an increase in store traffic. According to Placer.ai data shared with TheStreet, foot traffic at Target declined by 3.3% year-over-year in August, marking the seventh consecutive month of decline. During the first week of September, visits dropped by 6.2%.
A report from market research firm Wunderkind found that nearly half of U.S. consumers have noticed higher prices for back-to-school items, and one-fifth are buying less due to inflation and tariffs affecting essentials.
After new tariffs took effect on August 7 impacting numerous U.S. trade partners, consumer sentiment dropped by five percent at the start of August—the first decrease after four months of improvement—according to University of Michigan data.
R.J. Hottovy, head of analytical research at Placer.ai, said last month: “As we move through August, it’s becoming clear that consumers are being more strategic with their store visits, prioritizing needs over wants.”
Target’s struggles continued into the second quarter with another reported decline: comparable store sales decreased by almost 3.2% year-over-year.
During an earnings call on August 20, CEO Brian Cornell addressed these issues: “We need to do better, and our entire team is focused on consistent execution, building further momentum, and getting back to profitable long-term growth.”
Chief Operating Officer Michael Fiddelke stated that efforts would focus on improved merchandise selection and customer service along with technology investments aimed at boosting sales.
Despite these initiatives, consumer boycotts persist as Target has not reinstated several DEI policies eliminated earlier this year—including participation in a Human Rights Campaign survey tracking LGBTQ+ corporate practices and programs supporting Black employees and businesses.
The People’s Union USA has organized another boycott throughout September targeting Target’s decisions regarding DEI initiatives. John Schwarz, founder of the group organizing boycotts since February, said via Instagram video in May that Target is unresponsive: “They’re not doing anything” about consumer concerns related to DEI cuts.
Rev. Jamal Bryant from Atlanta led a previous boycott over DEI policy changes and commented last month: “They will continue to hemorrhage… I think that it’s time now for the shareholders to make their voice clear on what is needed and necessary.”
Target also faces pressure from price-sensitive shoppers amid rising costs associated with President Donald Trump’s tariff policies.
