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Yahoo
21-05-2025
- Business
- Yahoo
DEI boycott 'played a role' in Target's Q1 sales slump as foot traffic declined
Target's (TGT) sluggish first quarter was partly due to consumers' protests to the retail giant's rollback on diversity, equity, and inclusion (DEI) policies. On Wednesday, shares of the retailer slid more than 7% after it posted a 3.8% year-over-year decline in same-store sales, compared to the 3.7% drop it saw last year. CEO Brian Cornell said during the earnings call that one headwind Target faced in the quarter was consumer reaction to "updates" it shared on belonging in January. Those reactions, Cornell said, compounded ongoing pressure on consumers' discretionary spending amid five months of declining consumer confidence and uncertainty about tariffs. "While we believe each of these factors played a role in our first quarter performance, we can't reliably estimate the impact of each one separately," Cornell said. The retailer announced in January it would scale back its "Belonging at the Bullseye" strategy that focused on hiring and supplier diversity goals. The changes also ended Target's participation in external diversity-focused surveys, including the Human Rights Campaign's Corporate Equality Index. Target was mentioned as a specific focal point for advocacy group Black Wall Street Ticker, which in February called for a 40-day "corporate fast" from spending any money at the chain between March 5 and April 17. Target is one of dozens of companies that announced recent about-faces on diversity, a list that also includes Walmart (WMT), Google (GOOG), Meta (META), McDonald's (MCD), Amazon (AMZN), and Tractor Supply (TSCO). For the week of March 3, Walmart's foot traffic was down 0.7% year over year, while Target's foot traffic was down 6.8%, according to They haven't seen a full recovery so far this year. Meanwhile, foot traffic at Costco (COST) — which has affirmed its support for DEI policies and was listed by the National Association for the Advancement of Colored People (NAACP) as part of a "Black Consumer Advisory" initiative — was up 7% year over year in the week of March 3. Walmart has faced some repudiation, including from its own investors. More than 30 shareholders representing $266 billion in assets sent a message earlier this year to CEO Doug McMillon that called the retailer's recent DEI policy changes "very disheartening." Yet, Walmart's US same-store sales jumped 4.5% year over year in its latest quarter, besting estimates of 3.85%. Roth Capital Partners senior research analyst Bill Kirk told Yahoo Finance that this is a larger narrative as Walmart outpaces Target's growth rate by four times. Target is "very far behind," he said, as the company struggles to figure out "what makes them unique in this current environment." "Consumers aren't compelled to use Target in the same way they once were ... If you're not compelled to use Target for a particular reason, it makes a boycott far simpler to execute," he said. The backlash could persist. CFRA analyst Arun Sundaram told Yahoo Finance, "I don't think Target gave much assurance that the DEI-related boycotts were limited to this quarter." Sundaram noted that, unlike the backlash to Target's Pride merchandise in 2023, this time "management couldn't quantify the impact." Back then, Target "provided monthly sales cadence and reassured investors that the issue was mostly contained to that quarter." Meanwhile, Morningstar analyst Noah Rohr said the company is facing "several headwinds," making it "difficult to parse out" a direct factor. "Tough competition and a weak spending environment," he said, are "two factors likely to persist in coming quarters." Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on X @alexiskweed. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
DEI boycott 'played a role' in Target's Q1 sales slump as foot traffic declined
Target's (TGT) sluggish first quarter was partly due to consumers' protests to the retail giant's rollback on diversity, equity, and inclusion (DEI) policies. On Wednesday, shares of the retailer slid more than 7% after it posted a 3.8% year-over-year decline in same-store sales, compared to the 3.7% drop it saw last year. CEO Brian Cornell said during the earnings call that one headwind Target faced in the quarter was consumer reaction to "updates" it shared on belonging in January. Those reactions, Cornell said, compounded ongoing pressure on consumers' discretionary spending amid five months of declining consumer confidence and uncertainty about tariffs. "While we believe each of these factors played a role in our first quarter performance, we can't reliably estimate the impact of each one separately," Cornell said. The retailer announced in January it would scale back its "Belonging at the Bullseye" strategy that focused on hiring and supplier diversity goals. The changes also ended Target's participation in external diversity-focused surveys, including the Human Rights Campaign's Corporate Equality Index. Target was mentioned as a specific focal point for advocacy group Black Wall Street Ticker, which in February called for a 40-day "corporate fast" from spending any money at the chain between March 5 and April 17. Target is one of dozens of companies that announced recent about-faces on diversity, a list that also includes Walmart (WMT), Google (GOOG), Meta (META), McDonald's (MCD), Amazon (AMZN), and Tractor Supply (TSCO). For the week of March 3, Walmart's foot traffic was down 0.7% year over year, while Target's foot traffic was down 6.8%, according to They haven't seen a full recovery so far this year. Meanwhile, foot traffic at Costco (COST) — which has affirmed its support for DEI policies and was listed by the National Association for the Advancement of Colored People (NAACP) as part of a "Black Consumer Advisory" initiative — was up 7% year over year in the week of March 3. Walmart has faced some repudiation, including from its own investors. More than 30 shareholders representing $266 billion in assets sent a message earlier this year to CEO Doug McMillon that called the retailer's recent DEI policy changes "very disheartening." Yet, Walmart's US same-store sales jumped 4.5% year over year in its latest quarter, besting estimates of 3.85%. Roth Capital Partners senior research analyst Bill Kirk told Yahoo Finance that this is a larger narrative as Walmart outpaces Target's growth rate by four times. Target is "very far behind," he said, as the company struggles to figure out "what makes them unique in this current environment." "Consumers aren't compelled to use Target in the same way they once were ... If you're not compelled to use Target for a particular reason, it makes a boycott far simpler to execute," he said. The backlash could persist. CFRA analyst Arun Sundaram told Yahoo Finance, "I don't think Target gave much assurance that the DEI-related boycotts were limited to this quarter." Sundaram noted that, unlike the backlash to Target's Pride merchandise in 2023, this time "management couldn't quantify the impact." Back then, Target "provided monthly sales cadence and reassured investors that the issue was mostly contained to that quarter." Meanwhile, Morningstar analyst Noah Rohr said the company is facing "several headwinds," making it "difficult to parse out" a direct factor. "Tough competition and a weak spending environment," he said, are "two factors likely to persist in coming quarters." Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on X @alexiskweed. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy
Yahoo
28-02-2025
- Business
- Yahoo
Millions expected to participate in 24-hour economic blackout
DAYTON, Ohio (WDTN) — Millions are expected to take part in an economic blackout in response to the erosion of DEI policies across the United States. A 24-hour blackout will see customers boycott major retailers that have rolled back their DEI practices. The blackout was established by the People's Union USA, who are encouraging people to hold their dollars from large corporations in an effort to show that consumers have power. Those participating in the boycott say that it's about accountability, meanwhile others are skeptical about whether it will be success, given that it's only a one-day initiative. The boycott coincides with stances from other community leaders, both locally and nationally. Dayton NAACP President Derrick Foward believes that people should take an active role in the democracy available to them. Foward said that he and the organization agree with Reverend Al Sharpton's stance on the issue specifically. Sharpton's stance is available to read on the National Action Network's website. 'I think it sends a powerful message to corporations,' Foward said. 'I can't tell you what to do. Organizationally, I can tell you, use your brain. Your eyes work, your ears work and, and, you know what's happening today.' The NAACP unit will announce more details about a Black Consumer Advisory program that will roll out next week. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
28-02-2025
- Business
- Yahoo
It's 'economic blackout' day as campaign encourages Americans not to spend for 24 hours
A retail boycott is hitting major US businesses Friday as an online campaign calls for Americans to spend nothing at places such as Walmart (WMT), Target (TGT), Amazon (AMZN), and McDonald's (MCD). The motivation for the so-called "economic blackout" are varied, according to John Schwarz, founder of the grassroots organization The People's Union. Schwarz first called for the blackout in an Instagram video that gained more than 8 million views. He said he wants to end alleged price-gouging and tax avoidance by major corporations. "We can protest by not shopping at McDonald's, Walmart, Target," Schwarz said. "If you have to go out and shop that day, go to a local business, a small, locally owned boutique. But if you can, don't go out and spend a dime that day." Schwarz said his message advocating for price reductions became conflated with a separate consumer pushback on companies that have backed away from diversity, equity and inclusion (DEI) policies. "I support it, but I'm not connected to DEI," Schwarz said, noting that he is instead focused on price gouging and tax avoidance. Target, Walmart, Amazon and McDonald's were among the many companies that announced recent about-faces on diversity, a list that also includes Google (GOOG), Meta (META) and Tractor Supply (TSCO). Now all seven of those companies appear on a list of DEI rollbacks maintained by the National Association for the Advancement of Colored People (NAACP) as part of a "Black Consumer Advisory" initiative launched earlier this month designed to encourage support for businesses that expand their commitments to diversity. "If corporations want our dollars, they better be ready to do the right thing," NAACP CEO Derrick Johnson said in a statement announcing the project. Target is also mentioned as a specific focal point of another advocacy group, Black Wall Street Ticker, that has called for a "corporate fast" from spending any money at the Minneapolis retailing giant roughly coordinating with the 40 days of Lent starting March 5 through April 17. "To see companies we've supported heavily — like McDonald's, Ford Motors, Amazon, Meta, and Walmart— betray our long-standing relationship is beyond disheartening," the group says on its site, but "the greatest insult comes from Target." Walmart has faced some repudiation, too, from some of its own investors. More than 30 shareholders representing $266 billion in assets sent a message last month to CEO Doug McMillon that called the retailer's recent DEI policy changes "very disheartening." "As Walmart shareholders, we are also concerned to see our company give into bullying and pressure from anti-DEI groups," the group said in its letter. The pushback illustrates the difficult spot many companies are in as they try to navigate new legal threats surrounding DEI from the courts, conservative activists, and a Trump administration that is encouraging DEI revisions across corporate America. Retailers are particularly challenged because so many Americans rely on their products or visit their stores — and they often find themselves in the political spotlight for a multitude of reasons. Walmart CFO John David Rainey recently told Yahoo Finance that the retailer aims to keep prices low under tariff pressure, but the company did not respond to a request for comment on the call for boycotts. Pleas for DEI-based boycotts, however, may have already had an effect on foot traffic. One retail analyst, Joe Feldman of Telsey Advisory Group, said he suspects shoppers are heeding those pleas based on a look at recent data — even though he can't be 100% certain. "Is it more than that? Maybe," he said. "But I think that's a key driver." For the week of Feb. 3, Walmart foot traffic was down 2.9% year over year, and Target foot traffic was down 8.6%, according to Meanwhile Costco — a retailer that has affirmed its support for DEI policies and listed that way in the NAACP's "Black Consumer Advisory" — was up 5.7% year over year. The following week of Feb. 10 also showed a decrease year over year for Walmart and Target, with foot traffic down 1.4% and 3.9%. Costco (COST) showed a 4.6% rise. "You can see it just dropped like a rock based on data," Feldman said about Target's decline in the three weeks after social media accounts started calling for retail boycotts. Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
Retailing giants are facing new pushback following their DEI retreats
Some giant retailers that rolled back DEI policies are now feeling some pushback from their own customers and investors. Target (TGT) and Walmart (WMT) were among the many companies that announced recent about-faces on diversity, a list that also includes Google (GOOG), Meta (META), McDonald's (MCD), Amazon (AMZN) and Tractor Supply (TSCO). Now all seven of those companies appear on a list of DEI rollbacks maintained by the National Association for the Advancement of Colored People (NAACP) as part of a "Black Consumer Advisory" initiative launched earlier this month designed to encourage support for businesses that expand their commitments to diversity. "If corporations want our dollars, they better be ready to do the right thing," NAACP CEO Derrick Johnson said in a statement announcing the project. Target is also mentioned as a specific target of another advocacy group, Black Wall Street Ticker, that has called for a "corporate fast" from spending any money at the Minneapolis retailing giant roughly coordinating with the 40 days of Lent starting March 5 through April 17. "To see companies we've supported heavily — like McDonald's, Ford Motors, Amazon, Meta, and Walmart— betray our long-standing relationship is beyond disheartening," the group says on its site, but "the greatest insult comes from Target." Walmart has faced some repudiation, too, from some of its own investors. More than 30 shareholders representing $266 billion in assets sent a message last month to CEO Doug McMillon that called the retailer's recent DEI policy changes "very disheartening." "As Walmart shareholders, we are also concerned to see our company give into bullying and pressure from anti-DEI groups," the group said in its letter. The pushback illustrates the difficult spot many companies are in as they try to navigate new legal threats surrounding DEI from the courts, conservative activists and a Trump administration that is encouraging DEI revisions across corporate America. Retailers are particularly challenged because so many Americans rely on their products or visit their stores — and they often find themselves in the political spotlight for a multitude of reasons. For example, today there is a separate call circulating online for Americans to spend nothing at Walmart, Target, Amazon, and major food chains like McDonald's on Friday, Feb. 28. John Schwarz, a New York City resident and founder of the grassroots organization The People's Union, first called for this 'economic blackout' in an Instagram video that gained more than 8 million views. Schwarz said he wants to end alleged price-gouging and tax avoidance by major corporations. 'If you have to go out and shop that day, go to a local business, a small, locally owned boutique. But if you can, don't go out and spend a dime that day.' Walmart CFO recently told Yahoo Finance that it aims to keep prices low under tariff pressure, but the company did not respond for comment around the call for boycotts. Schwartz said his message advocating for price reductions became conflated with DEI. "I support it, but I'm not connected to DEI," Schwarz said. Pleas for DEI-based boycotts, however, may be having an effect on foot traffic. One retail analyst, Joe Feldman of Telsey Advisory Group, said he suspects shoppers are heeding those pleas based on a look at recent data — even though he can't be 100% certain. "Is it more than that? Maybe," he said. "But I think that's a key driver." For the week of Feb. 3, Walmart foot traffic was down 2.9% year-over-year, and Target foot traffic was down 8.6%, according to Meanwhile Costco — a retailer that has affirmed its support for DEI policies and listed that way in the NAACP's "Black Consumer Advisory" — was up 5.7% year over year. The following week of Feb. 10 also showed a decrease year over year for Walmart and Target, with foot traffic down 1.4% and 3.9%. Costco showed a 4.6% rise. "You can see it just dropped like a rock based on data," Feldman said about Target's decline in the three weeks after social media accounts started calling for retail boycotts. head of analytical research attributed lower foot traffic in February to "post-holiday spending pullbacks, decreased consumer confidence, weather, and other macroeconomic conditions." Inclement weather, like the cold fronts that struck the Midwest, South, and Northeast or wildfires in California, would cause a shorter-term drop in traffic, Feldman added. Target declined to comment on the cause. It is no stranger to political controversy. It faced a backlash two years ago following a Pride Month promotion, with Target CEO Brian Cornell saying the company's in-store staff faced "threats and aggressive actions" over the Pride Month merchandise even though the products had been in its stores for more than a decade. Its website still highlights diversity by promoting a "Buy Black" option, even during Black History Month. Among those who expressed public disappointment in Target's DEI changes were Anne and Lucy Dayton, the daughters of one of the company's cofounders, Bruce Dayton. They published letters in the Financial Times and Los Angeles Times saying "we are alarmed how quickly the business community has given in to the current administration's retaliatory threats." "It is not 'illegal' for a company to create a business model based on what it believes to be important ethical and business standards,' adding that "by cowering, Target and others are undermining the very principles that have made their companies a success.' Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
