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Target’s foot traffic has fallen for the eighth consecutive week, and seems to have been caused by its decision to end diversity, equity, and inclusion (DEI) initiatives earlier this year.
According to Placer.ai data, in the week beginning March 17, store visits dropped 5.7% year-over-year, continuing a trend that has seen an average weekly decline of 6.2% over the past two months.
The retailer’s struggles come as a 40-day boycott led by Black clergy continues, coinciding with the Lent season and gathering more than 150,000 participants, surpassing the organizers' original goal of 100,000. Target has not commented on whether the boycott is contributing to the decline in store visits.
Executives had previously expressed optimism that Easter-related promotions would help reverse sales declines. In its March 4 earnings call, Target reported a 3.1% loss in Q4 and a non-specified sales drop in February. The latest foot traffic data suggests, however, that the company has yet to see a meaningful rebound.
DEI strategy and competitive comparisons
While several major retailers have adjusted their approach to DEI, Target’s sharp decline in foot traffic stands out. Competitors such as Costco, which has resisted external pressures to scale back DEI efforts, continue to see growth. Costco reported a 5.2% year-over-year increase in visits for the same week beginning March 17, marking its 13th straight week of rising foot traffic.
Walmart and McDonald’s, which had also experienced multi-week declines, saw a reversal in the same period. Walmart recorded a slight 0.3% increase, while McDonald’s posted a 2% gain. Both companies have experienced smaller declines in average foot traffic over the past two months compared to Target, with Walmart down 1.6% and McDonald’s down 3.6%, versus Target’s 6.2% drop.
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Analysts suggest that Target’s historically strong commitment to racial and social justice may be intensifying the backlash against its DEI shift, particularly among customers who had supported the company for its past stance.
Can Target circle week reverse the trend?
Despite its recent decline, Target is now in the midst of its annual Target Circle Week, a major sales and marketing push running from March 23 to March 29. While there is no direct comparison to a similar event in the same period last year, the company’s performance will be closely watched to determine whether the promotion can drive foot traffic recovery.
Retail analysts will assess how this year’s event compares to past Circle Weeks and whether the campaign can offset the ongoing boycott and consumer sentiment shift. Target’s ability to stabilize store visits will be a key indicator of whether its strategic pivot on DEI is impacting long-term customer loyalty.
Like many organisations it finds itself in the middle of a culture war between a right-wing administration determined to end policies designed to create a more equitable society and supporters of diversity who recognise the opportunities it brings and are active in their support of it.
With strong support for both, organisations are struggling to make the right call for their business. Right now, Target’s decision looks like it could be detrimental to its bottom line, but it may be too late to make any sort of reversal.
