The Power of Boycotts: How Target’s DEI Reversal Is Costing Foot Traffic

Meanwhile, Costco Stands Firm and Sees 13 Straight Weeks rof Growth

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If you ever doubted the power of collective action, just take a look at what’s happening with Target. Since the retail giant decided to drop its diversity, equity, and inclusion (DEI) program in January, it has been hit with an eight-week streak of declining foot traffic—and it doesn’t look like the trend is reversing anytime soon.

The Numbers Don’t Lie

For the week starting March 17, Target’s in-store visits were down 5.7% compared to last year, according to data from Placer.ai. While that’s slightly better than the 7.1% decline the previous week, the retailer’s average weekly drop over the past two months sits at 6.2%.

Target was hoping its Easter promotions would help bring back shoppers, but so far, the numbers tell a different story. A 40+ day boycott, largely led by Black clergy members, has gained massive traction—over 150,000 people have joined, surpassing the original goal of 100,000.

Costco’s Loyalty Pays Off

While Target is struggling, Costco is thriving. Unlike Target, Costco resisted pressure to abandon its DEI efforts and has seen 13 straight weeks of foot-traffic growth. For the same week starting March 17, Costco’s visits were up 5.2% compared to last year.

Other Retailers Feeling the Heat

Target isn’t the only company experiencing a decline. Walmart and McDonald’s have also seen several weeks of foot-traffic losses. However, both managed to break their slumps last week, with Walmart gaining 0.3% and McDonald’s seeing a 2% increase. Still, neither faced as much backlash as Target, likely because Target was previously outspoken about racial and social justice issues before abruptly changing course.

Social Media’s Role in the Target Boycott

It’s impossible to ignore the influence of social media on this movement. Platforms are flooded with memes and viral posts urging people to boycott Target. These digital campaigns seem to be working, as shoppers who once stood by the brand are now opting to spend their money elsewhere.

What’s Next for Target?

Right now, Target is in the middle of Target Circle Week—a huge sale event running from March 23–29. Last year, this same period saw a 0.8% drop in traffic, so it will be interesting to see whether this year’s event can turn things around. However, given the intensity of the boycott, it’s unclear if the usual discounts and promotions will be enough to bring customers back.

Final Thoughts

This situation proves one thing: boycotts work when people commit to them. Target made a controversial decision, and now it’s feeling the consequences in its bottom line. Meanwhile, companies like Costco, which stood firm in their values, are reaping the benefits.

It’ll be interesting to see whether Target sticks to its new direction or reconsiders as the losses pile up. Either way, this is a reminder that where we choose to spend our money matters.

What do you think—will Target reverse course, or is this just the beginning of a long-term decline? Let’s talk in the comments!