In recent months, major companies like Walmart, Amazon, Meta, Google, and Accenture have scaled back DEI efforts, a trend that gained momentum after President Donald Trump directed federal agencies to eliminate DEI programs and called on private companies to follow the suit.  

And two weeks ago, retail gaint Target also ended its diversity, equity, and inclusion (DEI) initiatives, joining a growing list of U.S. corporations retreating from such commitments amid political and shareholder pressure. The retailer confirmed the move, signaling a shift away from its long-standing reputation as an inclusive brand. However, it appears the retailer may not have given much thought to it, as consequences of the decision surface.

Reportedly, Target’s DEI rollback is drawing sharp criticism, particularly from those who argue that its commitment to inclusivity has been a key factor in attracting younger, more diverse consumers. Activists are urging a nationwide boycott of Target for scaling back its DEI initiatives.

Civil rights attorney Nekima Levy Armstrong said, "For decades, Target has benefitted from nearly unfettered support from Minnesota residents, families and consumers all around the country. In the past, Target was known for its diversity initiatives and reputation for supporting diverse communities. Now Target has shown its true face by deciding to roll back its focus on diversity, equity, and inclusion by putting profits and politics over people."

Eric Schiffer, CEO of Patriarch Organisation added, "For a brand like Target, which thrives on inclusivity, this move is like corporate self-sabotage.”  

As part of its DEI rollback, the retailer is shutting down its Racial Equity Action and Change (REACH) initiatives, originally launched with a US $2 billion investment pledge for Black-owned businesses by 2025. The program aimed to introduce over 500 Black-owned brands and increase visibility for diverse businesses through paid media partnerships with its in-house marketing platform, Roundel.  Additionally, the company has renamed its "Supplier Diversity" team to "Supplier Engagement," a move it claims better represents its global procurement approach.  

Target’s history of championing diversity has previously made it a progressive outlier in the retail industry. Unlike its competitor Walmart, Target has actively promoted LGBTQ+ merchandise during Pride Month, appealing to a more diverse customer base. However, in 2023, the company quietly removed some Pride-themed products after confrontations between shoppers and employees.  

Beyond consumer reactions, Target now faces a shareholder lawsuit, filed on January 31, 2025, alleging that the company failed to disclose financial risks tied to its DEI efforts and social initiatives. Investors claim that backlash over Pride Month campaign changes and DEI policies led to a decline in stock value, ultimately harming shareholder interests. Meanwhile, civil rights leaders are calling for Black consumers to boycott companies pulling back on diversity commitments, intensifying the public debate.  

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At a recent retail conference in New York, Target CEO Brian Cornell reflected on the company’s growth, attributing its success to investing in people and fostering a culture of care. However, with political and economic pressures reshaping corporate priorities, many companies are reconsidering their DEI strategies altogether. 

While Target has yet to issue a formal response to the lawsuit, it reaffirmed its broader commitment to inclusion, stating, "We remain focused on driving our business by creating a sense of belonging for our team, guests, and communities. Belonging for all is an essential part of our team and culture, helping fuel consumer relevance and business results."

As more companies pull back on DEI initiatives, the question is whether corporates are abandoning DEI or simply adjusting its approach.