When The Target Is You
Can A Once-Beloved Retail Brand Recover?
Target’s brand crisis demonstrates how quickly consumer sentiment can shift when brands fail to align actions with stated values. This era of “f*** around and find out” is no joke—specifically for brands like Target and all the others who fell for the okie doke of cultural wars around diversity, equity, and inclusion.
Most of the leaders behind these brands and institutions are finding out the hard way.
Don’t play with your bottom lines, because consumers aren’t playing with you when it comes to their wallets.
It couldn’t be any worse of a full-circle moment for Target. Just five years ago, the big box store pledged via its Roundel Media Fund “to offset the cost of marketing programs,” ensuring the new fund would award more than $25 million in media to Black, Indigenous, and people of color brands by 2025. However, we see how that’s going.
I don’t believe they could have forecasted such a backlash after their diversity commitments during a global pandemic and at a time of intense racial reckoning sparked by the murder of George Floyd in Minneapolis, also the headquarters of Target.
The irony is striking.
How could a company that pledged support following events in its own backyard retreat from those very commitments?
The Numbers Don’t Lie
The latest for the Bullseye brand is the never-ending headlines of the brand's spiraling image, including its sales drop of 2.8 percent year-over-year, with total transactions down 2.4 percent, and traffic down 4.8 percent, according to Placer.ai. Last week, the retailer rolled out its first-quarter earnings report.
And according to Brian Cornell, chair and CEO, the team “navigated a highly challenging environment” in Q1. He acknowledged sales fell short while pointing to bright spots—digital growth was up, same-day delivery through Target Circle 360 jumped 36 percent. Cornell added,
“While these highlights reinforce our confidence in the underlying health of our business, we’re not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth.”
At least he acknowledges the performance isn’t where it needs to be.
What They’re Not Saying
The catalyst for Target’s decline becomes clear when examining the timeline. The missing piece is the fact that the store took a fall soon after announcing it concluded its “Racial Equity, Action and Change” initiative, now rebranded as its “Belonging” program, earlier this year.
This then generated a response. Activists and Black faith leaders, specifically Rev. Dr. Jamal Bryant, led a 40-day Lenten Target Fast. Combined with the “Feb. 28 Economic Blackout Day” organized by the People’s Union, these actions were definite contributors to the decline in Target sales.
It’s the refusal to acknowledge the truth that frustrates me and so many others. Hence, the recent National Target Boycott, which took place on Sunday, May 25, was the fifth anniversary of George Floyd’s murder.
People are not playing with these brands and are ensuring accountability by any means necessary.
The Collateral Damage
The consequences extend far beyond Target’s corporate balance sheet. These closed wallets come at a price to brands such as a beloved beauty brand, The Lip Bar. The founder and CEO, Melissa Butler, shared in a recent video that her sales are down 30 to 40 percent.
Of course, this doesn’t come as a surprise. But it shows the importance of supporting Black small businesses and brands directly and frequently. Our dollars matter. Where we choose to shop matters equally.
Butler’s sentiments cut to the heart of the impact of all of this. What resonates most with me is the question she poses at the end of her message:
“Can businesses sustain in the event that people don’t go back to Target, period? So, like, where do the dollars come from?”
In Times Like These, Resiliency is Key
In seasons of challenges and turbulence, it’s also a time to stay persistent and resilient.
Businesses can and will survive in times such as this only if they’re willing to adapt to the new economic reality. Consumers aren’t stopping their spending—they’re simply redirecting it to spaces that offer more transparency, better pricing, and authentic connections.
As discussed in our Clubhouse conversation last week about Target’s dramatic sales decline and the brand’s DEI rollback, Chandra Sanders, an Until Further Notice subscriber, noted that consumers are now “looking at their money and spending in different ways.” The dollars will flow through alternative channels—online marketplaces, local discount retailers, and emerging e-commerce platforms that understand evolving consumer needs.
For small businesses and major corporations watching Target’s trajectory, the message is clear—economic survival requires continuous evolution. The dollars will always find a home—the only variable is which brands will be smart enough to welcome them.
In this rapidly changing landscape, adaptability isn’t just an advantage—it’s the difference between economic relevance and irrelevance.
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Target was a gut punch. They were my go to for sooo much. They had my back in a way with that same day delivery, but I haven't looked back since February. I remember filling my cart with the BH month merch, hearing the news and never going back. I did find a link to purchase directly from the Black own brands, to continue to support, and everyone needs to be doing that if they can. I love "The Lip Bar". I'm from Detroit and used to visit their Pop-up in the West village for years. I was thrilled when they went into Target, but I would rather go to them directly. The problem is that I know not everybody will do that. Thank you for this. It clearly hit home <3