Target CEO Brian Cornell is scheduled to meet with the Rev. Al Sharpton this week in New York amid growing calls for a boycott of the retail giant and a notable decrease in store traffic. The shift follows the company’s recent retreat from key diversity, equity, and inclusion (DEI) initiatives, as the civil rights leader disclosed in an interview with Finance Newso on Wednesday.
This meeting, initiated by Target, comes at a time when various civil rights organizations are urging consumers to refrain from shopping at Target due to its scaling back of DEI programs. While Sharpton has not yet officially called for a boycott, he has expressed support for those who have suggested it.
Sharpton articulated his stance, stating, “You can’t have an election come and all of a sudden, change your old positions. If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then we have a right to withdraw from you.”
The Rev. Sharpton also indicated that he might call for a boycott if Target fails to reaffirm its commitment to the Black community and refuses to collaborate with and invest in Black-owned businesses.
In response to Target’s outreach, Sharpton noted, “If [Cornell] wants to have a candid meeting, we’ll meet. I want to first hear what he has to say.”
A spokesperson for Target confirmed that the company sought the meeting with Sharpton and that Cornell will speak with him in New York this week, although the retailer declined to provide additional comments.
Earlier in January, Target announced that it would discontinue its three-year DEI objectives, cease sharing company reports with external organizations focused on diversity, such as the Human Rights Campaign’s Corporate Equity Index, and stop initiatives aimed at increasing product offerings from Black- and minority-owned businesses.
Following this announcement, there was a noticeable downturn in foot traffic at Target locations. According to analytics firm Placer.ai, the retailer’s store visits have decreased for ten consecutive weeks compared to the same period last year, beginning the week of January 27. Prior to this, Target had experienced year-over-year growth in weekly visits.
While this traffic metric provides insights into physical store visits, it does not directly reflect sales figures for in-store or online transactions. Nevertheless, it may indicate overall customer engagement. Amidst broader economic pressures that have forced consumers to adjust their spending habits, Target’s decline in visits coincided with criticism from civil rights groups and online users regarding the company’s DEI decisions.
Target opted not to comment on the traffic data, asserting that it does not discuss third-party analytics.
At a recent event hosted by the National Action Network (NAN), Sharpton remarked that a similar boycott of PepsiCo would be initiated if the company did not agree to meet with the organization within a 21-day timeframe. In February, PepsiCo announced it would be discontinuing its DEI workforce targets and reassigning its chief DEI officer position, eliciting similar backlash.
This week, Pepsi executives met with Sharpton and his associates, though he refrained from detailing any commitments made by Pepsi, instead emphasizing the importance of CEO Ramon Laguarta’s presence at the meeting and indicating that discussions would continue.
Sharpton’s interactions with companies such as PepsiCo and Target, coupled with his willingness to consider boycotts, represent a significant response to the opposition that conservative activists, including Robby Starbuck, have mounted against DEI initiatives. Starbuck, a director turned activist, has advocated for businesses to abandon DEI policies by disseminating what he deems unfavorable information about their efforts to his online followers, successfully influencing numerous corporations.
Target joins wider DEI retreat
Through its decision to retract DEI efforts, Target has aligned itself with other major corporations like Walmart, McDonald’s, and Tractor Supply, which have similarly muted or abandoned DEI initiatives out of concern that such programs might alienate certain customer bases or provoke backlash from former President Donald Trump, who has pledged to eliminate all DEI programming within the federal government.
In contrast, Costco has resisted pressure from conservative factions to maintain its DEI programs. Recently, shareholders of the membership-based warehouse club dismissed a proposal seeking a report on the potential risks associated with DEI initiatives.
NAN has initiated campaigns to promote so-called “buy-cotts” at Costco, organizing events in locations such as Tennessee, New York, and New Jersey, where participants were given gift cards to spend at the wholesale club.
In March, Target’s store traffic experienced a 6.5% decline, whereas Costco’s traffic grew by 7.5% year over year, according to Placer.ai data.
Target’s challenges extend beyond the backlash against its DEI policies; the opposition to its changes compounds existing issues. The retailer has reported stagnant annual revenue for the past four years, struggling to generate consistent sales growth.
Furthermore, Target has faced pressure on its profit margins, as consumers gravitate more towards essential items like groceries while spending less on more lucrative categories such as home goods and apparel. The company has attributed its difficulties to a myriad of factors, including inventory mismanagement, losses from theft and damage, public backlash concerning its Pride Month collections, and increased costs attributed to expedited shipping.
Intensifying competition has further complicated Target’s situation, with rival Walmart revamping stores, launching innovative private label brands, and drawing in a wealthier clientele.
In February, Target provided disappointing guidance for the upcoming quarter, projecting only 1% sales growth for the entire year.
‘What changed?’
During his upcoming conversation with Cornell, Sharpton intends to press Target to fulfill commitments made in the wake of George Floyd’s death in Minneapolis, the city where Target is headquartered.
“You made commitments based on the George Floyd movement … what changed?” Sharpton questioned. “Are you trying to say … everything’s fine now, because the election changed? That’s insulting to us.”
Following Floyd’s murder, Cornell expressed profound personal impact, reflecting, “That could have been one of my Target team members,” during a 2021 event held by the Economic Club of Chicago, as he recounted watching the disturbing footage.
At that time, he expressed a renewed motivation to intensify Target’s efforts against racial injustices.
“We have to be the role models that drive change and our voice is important,” he stated at the event. “We’ve got to ensure that we represent our company principles, our values, our company purpose on the issues important to our teams.”
