Most Innovative Companies Target is having a bad year . . . and it’s not just because of tariffs.
May 1, 2025
In this discussion, Liz Segran, a senior writer at Fast Company known for her insights on business trends, delves into Target's recent struggles, particularly highlighting the backlash from their DEI policy rollback that has led to significant boycotts and sales declines. Todd Sherman, a senior director at YouTube Shorts, shares the evolving landscape of short-form video content, detailing YouTube's strategic positioning against rivals like TikTok. The chat navigates how these shifts impact consumer behavior in retail and digital media.
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Target's Unusually Effective Boycott
- Target's boycott over rolling back DEI programs is unusually long and effective, causing a 3-7% decline in store foot traffic.
- This boycott represents one of the most impactful in decades, hitting the brand's goodwill and sales.
Target's Progressive Ally Branding
- Target branded itself as a progressive ally supporting Black Lives Matter and diverse brands since George Floyd's murder nearby.
- This made its quick rollback on DEI efforts amid Trump administration pressure especially disappointing to its customers.
Target's Pandemic Aftermath Decline
- Target's decline began post-pandemic when consumer spending dropped but inventory remained high amid supply chain issues.
- Store experience worsened with fewer staff and long lines, hurting customer satisfaction over the last two years.