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Target CEO Brian Cornell is scheduled to meet with civil rights leader Rev. Al Sharpton this week amidst growing calls for a boycott and a noticeable dip in store traffic. The retailer has been under fire since announcing its decision to scale back diversity, equity, and inclusion (DEI) programs.
Sharpton, who has not officially called for a boycott, told CNBC that the meeting was requested by Target. He stated his willingness to consider a boycott if the company doesn’t reaffirm its commitment to Black businesses, employees, and consumers.
Sharpton emphasized that a company’s commitment to fairness shouldn’t be swayed by election outcomes, adding, “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.” He intends to address this concern directly with Cornell.
Target confirmed the meeting but declined further comment.
The retailer’s troubles began in January when it announced the end of its three-year DEI goals, stopped sharing reports with diversity-focused groups, and ceased efforts to increase products from Black- and minority-owned businesses. Following this announcement, foot traffic at Target stores has reportedly declined for ten consecutive weeks, according to data from Placer.ai. While this data doesn’t reflect sales figures, it can suggest shifts in consumer behavior.
This meeting with Target comes on the heels of a similar discussion between Sharpton and PepsiCo leadership, after the food and beverage giant also adjusted its DEI initiatives. While the outcome of that meeting remains undisclosed, Sharpton described it as encouraging.
Target’s decision to roll back DEI programs follows a trend among major corporations, some of whom have expressed concerns about alienating customers or facing backlash from political figures. However, not all companies have followed suit.
Costco, for example, recently resisted shareholder pressure to scale back its DEI initiatives. Interestingly, while Target has seen declining foot traffic, Costco has reported an increase.
Target’s challenges extend beyond the DEI controversy. The retailer has faced flat revenue for several years, pressure on profit margins, inventory issues, and negative reactions to other company decisions. In February, Target issued a weak sales forecast for the coming year.
Sharpton intends to question Cornell about Target’s commitments made following the murder of George Floyd in Minneapolis, where Target is headquartered. He plans to ask, “You made commitments based on the George Floyd movement … what changed?
Are you trying to say … everything’s fine now, because the election changed? That’s insulting to us.”
Cornell previously expressed being deeply affected by Floyd’s death and stated that it motivated him to strengthen Target’s efforts to combat racial inequities.