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Civil rights leader Rev. Al Sharpton is preparing to meet with Target (TGT+1.68%) officials to discuss their decision to abandon the retailer’s diversity, equity, and inclusion policies.
Minneapolis-based Target was one of the most visible in instituting robust DEI initiatives at the corporate level, especially after the murder of George Floyd and subsequent protests rocked the country in 2020.
Now, Target is among the most vulnerable companies to backlash after walking back those policies. President Donald Trump has pressured universities, retailers, federal agencies, and others to end their DEI initiatives, and in January Target joined McDonald’s, Walmart, and Google in doing so.
Yet, facing falling sales, Target CEO Brian Cornell will meet with Sharpton this week in New York to discuss the matter.
Sharpton told CNBC (CMCSA+1.99%) that the company approached him for a meeting, after some civil rights groups urged consumers not to shop at Target. Some groups are already boycotting Target. Rev. Jamal Bryant, an Atlanta-based megachurch pastor, is wrapping up a 40-day Target boycott, which ends today.
Sharpton said, “You can’t have an election come and all of a sudden, change your old positions. If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then we have a right to withdraw from you.”
The backlash seems to be having its intended effect. According to recent data from Placer.ai, Target’s year-over-year foot traffic has been down each week this year, while Costco’s has been up each week. Walmart (WMT+2.60%) has had mixed data. For the most recent week that Placer.ai has data, Target foot traffic was down over 7% for the week of March 31, while Walmart’s was down 1% and Costco’s was up .03%.
Adding to Target’s challenges, in early February, the company’s shareholders sued the retailer, alleging that it defrauded investors by concealing risks tied to its diversity initiatives. Later that month, the state of Florida filed another lawsuit against Target with similar accusations.
Target’s decision mirrors a larger corporate retreat from DEI programs, which have been reworked and abandoned in response to political and economic pressures. Companies including McDonald’s and Walmart have also altered their DEI strategies in recent months. Meanwhile, Costco has held firm. Placer.ai data shows that in the weeks following Costco’s (COST+2.17%) announcement that shareholders would uphold the company’s DEI programs, visits increased 5.7% during the week of Feb. 3 and 4.6% during the week of Feb. 10.
—Francisco Velasquez contributed to this article.