Target's Foot Traffic Declines For 8th Week Since DEI Boycott. Tariffs Likely Won't Help, As Stock Hits 52 Week Low.

Forbes

04-04-2025

A man shops at a Target store in Chicago on November 26, 2024, ahead of the Black Friday shopping ... More day. (Photo by KAMIL KRZACZYNSKI / AFP) (Photo by KAMIL KRZACZYNSKI/AFP via Getty Images)
For the eighth consecutive week, foot traffic at Target stores has declined, marking a troubling trend that began shortly after the company announced shifts to their diversity, equity and inclusion (DEI) program in late January.
Now come the tariffs.
I recently asked 'Do Boycotts Still Work?.' If you look strictly at foot traffic, the answer is yes. According to data from Placer.ai, foot traffic in Target stores for the week beginning March 17 fell 5.7% year-over-year, following an average weekly decline of 6.2% over the past eight weeks.
Target's decision to amend its DEI program signaled a shift that the brand would be changing its investment and priority in diversity efforts, which the company has been vocal about in the past, particularly around Black-owned businesses, where it committed to $2 billion in spend.
They built their brand on being inclusive and diverse. Pivoting became a risk, and soon thereafter, a movement began growing on social media, calling for an economic blackout day on February 28 against Target, alongside other retailers who made similar DEI changes. On that day, Target's website traffic was down 9% compared with the same period last year.
In the background, Pastor Jamal Bryant launched TargetFast.org, calling on 100,000 conscientious citizens to fast from spending any money at Target for the 40 days of Lent, beginning Wednesday, March 5, and concluding on April 20 (Easter Sunday). Today, over 150,000 participants have stepped up, far surpassing the participation goal.
This slump in foot traffic coincides with the timing of the 40-day 'fast.'
STONECREST, GEORGIA - OCTOBER 22: Pastor Jamal Bryant at New Birth Missionary Baptist Church on ... More October 22, 2024 in Stonecrest, Georgia. (Photo by)
Pastor Bryant also asked individuals to sell any Target stock they may own. And while there is no way to correlate directly, Target's stock price (NYSE: TGT) is down 24%—from 137.40 on January 24, the day Target cut its programs—to 104.70 on March 15. Within that time frame, the stock is down 10% from when the 40-day kickoff began on March 5, accelerating an ongoing downward trend in its stock price since late 2024.
As if Target's challenges weren't enough, the company now faces a new potential headwind: tariffs. On April 3, the stock hit $93.00—a 52-week low—on the day after the President Trump's 'Liberation Day' tariff announcement.
The recently announced tariff rates hit Wall Street hard, sparking concerns about the impact on global supply chains and retail prices. For retailers like Target, which rely heavily on imported goods, these tariffs could exacerbate existing challenges. Higher import costs may force the company to raise prices, further alienating price-sensitive consumers already grappling with inflationary pressures. This could create a vicious cycle, where declining foot traffic leads to lower sales, which in turn makes it harder for the company to absorb higher costs. The timing of these tariffs is particularly problematic for Target, as it struggles to regain its footing.
TOPSHOT - US President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs ... More during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2, 2025. Trump geared up to unveil sweeping new "Liberation Day" tariffs in a move that threatens to ignite a devastating global trade war. Key US trading partners including the European Union and Britain said they were preparing their responses to Trump's escalation, as nervous markets fell in Europe and America. (Photo by Brendan SMIALOWSKI / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)
While the company has yet to comment on how it plans to address these challenges, it's clear that the road ahead will be anything but smooth.
Target showed optimism during its March 4 earnings call, where executives highlighted their Easter assortment as a potential sales driver. The question now is whether Target's annual sale week, called Circle Week, with offers ranging up to 40% off items from March 23 to 29 in store and online can reverse the tide—or whether the damage to its brand reputation is more enduring.
Target's current status offers a valuable lesson in navigating the complex intersection of business and politics, which is underscoring the importance of consistency. Adjusting a company's DEI program may seem like an easy way to appease certain stakeholders in lieu of others, but the long-term consequences can be the questioning of consumer trust and loyalty.
Loyal customers are the goal of great business. Loyalty drives repeat purchases, reduces marketing costs, provides valuable feedback and contributes heavily to a brand's overall resilience and growth. These metrics matter.
In this time of VUCA (volatility, uncertainty, complexity and ambiguity), companies must be willing to stand by their principles, even when it's difficult. This is not only investing in their brand value but also serving as a bridge to continue to maintain and earn the trust and loyalty of their customers, both current and new.