Target’s Leadership Meets with Civil Rights Leaders Amid Calls for Boycott
Target Corporation’s CEO, Brian Cornell, is set for a pivotal meeting with civil rights leader Rev. Al Sharpton this week in New York City. This comes at a time when Target is facing mounting pressure from certain advocacy groups advocating for a boycott, following the company’s decision to reduce its commitments to diversity, equity, and inclusion (DEI) initiatives.
The call for this meeting originated from Target itself, as civil organizations expressed their disappointment over the retailer’s recent choice to scale back DEI efforts. While Sharpton has not officially endorsed a boycott, he has indicated support for similar movements urging consumers to reconsider their shopping choices regarding Target.
Rev. Sharpton articulated his concerns, stating, "You can’t have an election come and all of a sudden change your old positions." He emphasized the importance of a company maintaining its dedication to fairness, suggesting that if Target withdraws its commitment, consumers are justified in doing the same.
In a significant move, Sharpton has conveyed that he may advocate for a boycott against Target unless the company recommits to supporting the Black community and invests in Black-owned enterprises. This revelation came as part of his phone discussions with Target’s leadership.
A spokesperson for Target confirmed the planned conversation between Cornell and Sharpton and declined to comment further on the matter.
Earlier this year, Target announced the cessation of its DEI goals set over the past three years. The company also stated it would no longer share DEI-related reports with external organizations such as the Human Rights Campaign. Additionally, it decided to reduce efforts to increase the representation of products from Black- and minority-owned businesses within its stores.
Following the announcement of these changes, there has been a noticeable decline in traffic at Target locations. Data from analytics firm Placer.ai shows that foot traffic has decreased consistently over a ten-week period compared to the same time last year. This decline in store visits is concerning, especially since Target had previously seen a steady increase in customer traffic weekly.
Although this foot traffic metric does not provide insights into actual sales figures, it offers an indication of consumer behavior and interest in visiting stores. Target has been grappling with stagnant sales growth, with rising inflation impacting how consumers allocate their spending. The drop in store visits coincided with rising criticisms against Target’s DEI decision, prompting calls from various civil rights organizations for shoppers to consider other retailers.
At a recent convention, Sharpton indicated a broader strategy by his organization, the National Action Network (NAN), advocating "buy-cotts" to support companies maintaining their DEI commitments, contrasting Target’s retreat. He previously issued a similar ultimatum to PepsiCo regarding their DEI initiatives, reflecting a trend where corporate entities are facing increased scrutiny and demands in the context of social equity.
Target’s decision to curtail its DEI programs aligns it with other notable retailers like Walmart and McDonald’s, who have also retracted some efforts due to fears of alienating segments of their customer base. In contrast, Costco remains steadfast in its commitment to DEI, demonstrating a contrasting corporate approach amid societal pressures.
In March, while Target noted a 6.5% decline in store traffic, Costco reported a 7.5% increase year-over-year, signaling a developing divide in consumer sentiment influenced by corporate policies surrounding DEI.
Target’s difficulties transcend the backlash associated with its DEI stance, as the company has been contending with a range of challenges. Over the past four years, its annual revenues have largely plateaued, reflecting difficulty in generating consistent sales growth. Margins are under pressure as consumers increasingly prioritize everyday essentials over discretionary spending on higher-margin goods. Target has also flagged other operational issues such as inventory mismanagement, theft, and a backlash against its Pride Month initiatives as contributing factors affecting performance.
During his meeting with Cornell, Sharpton plans to press the importance of following through on commitments made after George Floyd’s murder, questioning the company’s current direction and its implications for community relations.
Sharpton’s dialogue with Target Leadership highlights ongoing tensions in the marketplace regarding racial equity and corporate responsibility. It underscores the potential implications for major retailers navigating the complex landscape of consumer expectations and corporate ethics in today’s society.
