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Target’s Losing Streak Continues for Eighth Week
Target’s foot traffic woes persist, marking an eighth consecutive week of decline. For the week of March 17, in-store visits dropped 5.7% compared to the same period last year. This follows a 7.1% dip the previous week and an average weekly decline of 6.2% over the eight-week period.
This downward trend began shortly after the retailer announced the termination of its diversity, equity, and inclusion (DEI) initiative in late January. While Target executives expressed optimism during a March 4 earnings call that their Easter offerings would boost sales following a disappointing Q4 and a February slump, the latest foot traffic numbers suggest otherwise.
A 40-day boycott of Target, organized by Black clergy and coinciding with Lent, may be contributing to the retailer’s struggles. The boycott has garnered over 150,000 participants, exceeding the organizers’ initial goal of 100,000. Target’s prior outspoken support for social and racial justice may be intensifying the backlash, despite being just one of many companies scaling back DEI initiatives in response to pressure from conservative groups and the Trump administration.
Meanwhile, competitors Walmart and McDonald’s saw their own weeks-long declines in foot traffic reverse during the same week. Walmart edged into positive territory with a 0.3% year-over-year increase, while McDonald’s saw a 2% gain. Over the eight-week period, Walmart and McDonald’s experienced average weekly declines of 1.6% and 3.6% respectively, compared to Target’s 6.2% drop.
Currently, Target is in the midst of its “Target Circle Week” promotion, offering significant discounts and deals from March 23-29. However, this sales push coincides with the ongoing decline in foot traffic.
Target’s decision to end its DEI initiative involved dismantling an executive committee focused on racial justice, removing minority hiring targets, and implementing other changes to its diversity programs. The company maintains its commitment to fostering a sense of belonging and points to its “Belonging at the Bullseye” initiative launched last year. Target cited the “changing external landscape” as a factor in its decision, echoing the actions of numerous Fortune 500 companies facing pressure from conservative activists, legal organizations, and the Trump administration’s scrutiny of DEI programs.