Target's DEI rollback costs CEO his job and investors billions

In January 2025, following pressure from political movements, Target Corporation announced a rollback of its diversity, equity, and inclusion (DEI) programs, a decision that led to a significant backlash among customers and affected the company's sales negatively. This decision came shortly after President Trump's executive order that criticized DEI initiatives as harmful. CEO Brian Cornell, who had previously championed DEI programs after the murder of George Floyd in 2020, faced immediate consequences as Target's sales began to decline, marking the first quarterly sales drop in six years. Consumer reactions included protests and a noticeable decrease in foot traffic to Target stores. The situation worsened as Target's market cap plummeted from $129 billion in 2021 to $45 billion by 2025, illustrating a substantial loss in investor confidence. In March, the company reported “soft” sales, coinciding with increased criticism over the retraction of its DEI commitments. Notably, surveys indicated that while protests against the rollback were occurring, they did not have a strong impact on overall sales; instead, consumer dissatisfaction stemmed from broader market realities and a shift towards lower-cost alternatives amid inflation. The decline in sales was attributed not just to the backlash from the DEI rollback but also to rising prices forcing many shoppers to choose competitors like Walmart and T.J. Maxx instead. Furthermore, more shoppers were turning to online options, leaving traditional retailers like Target at a competitive disadvantage. This shift has created a complex landscape where retailers must navigate the politicization of DEI while also adjusting to economic pressures influencing customer behaviors. In April 2025, following a dramatic drop in share prices and amid continuing poor results, Brian Cornell announced his resignation. This marked a significant moment for Target, signaling that the choices made around DEI policies, success metrics, and understanding the evolving consumer landscape directly contributed to their financial troubles. The company’s future remains uncertain as it faces ongoing criticism and the need for rebuilding trust with its customer base.