Business
Target’s Troubles Are Deepening
By Jake Beardslee · May 21, 2025
A Target store at Bayshore in Glendale, Wisconsin
Target is facing intensifying financial and reputational challenges following a turbulent few months marked by customer boycotts and looming tariff hikes under President Donald Trump. Mike De Sisti / Milwaukee Journal Sentinel via USA TODAY NETWORK / USA TODAY NETWORK / USA TODAY NETWORK via Imagn Images
Shopping carts sit at the Target store in the Cross County Center in Yonkers, New York
On Wednesday, the company reported a 3.8% decline in same-store sales for the previous quarter, attributing the slump to declining foot traffic and a dip in spending. CEO Brian Cornell noted several pressures on the retailer, including “five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs, and the reaction to the updates we shared on (DEI) in January.” Mark Vergari / USA TODAY NETWORK via Imagn Images
President Donald Trump signs a stack of executive orders on stage during his inauguration parade at Capital One Arena in Washington on Monday, Jan. 20, 2025
Target’s recent rollback of its diversity, equity, and inclusion (DEI) policies was once considered among the most robust in corporate America. The change has sparked outrage from customers and advocates. In January, shortly after Trump’s return to the presidency, Target announced the elimination of minority hiring goals and the dissolution of its racial justice executive committee. Though the company launched a rebranded initiative titled “Belonging at the Bullseye,” critics viewed the move as a retreat. Sam Greene / USA TODAY NETWORK via Imagn Images
Target Store at Georgia and Eastern Avenues, Washington, DC
The backlash was swift and highly visible. High-profile voices, including Anne and Lucy Dayton, the daughters of one of Target’s co-founders, called the rollback “a betrayal.” Rev. Jamal Bryant, a megachurch pastor in Georgia, led a 40-day boycott during Lent. Farragutful / Wikimedia
Rev. Al Sharpton waits to speak as the National Action Network (NAN) hosts a rally at Metropolitan AME Church in Washington, D.C., on Jan. 20, 2025
Demonstrators picketed outside Target’s Minneapolis headquarters, and civil rights leaders such as Rev. Al Sharpton joined in the criticism. Bryant warned that more companies would soon be scrutinized, saying on CNN, “Another company is going to be coming on the radar the next couple of weeks.” Josh Morgan / USA TODAY NETWORK via Imagn Images
People line up at Target store near the Asheville Airport
In response to mounting pressures, Target reshuffled its executive team and established a multi-year initiative called the “Enterprise Acceleration Office” to reposition the company for growth. Ken Ruinard / staff / USA TODAY NETWORK via Imagn Images
A floor display of press-on nails at an El Paso Target store
Adding to its woes, Target now faces potential cost increases due to tariffs. With about half of its inventory imported from abroad, and an estimated 25 percent from China, the company is especially vulnerable. Cornell warned of “massive potential costs” from the Trump tariffs. He added, “We have many levers to use in mitigating the impact of tariffs and price is the very last resort.” Vic Kolenc/El Paso Times / USA TODAY NETWORK via Imagn Images
A Target store in Des Moines, Iowa
Despite those assurances, Target’s stock (TGT) dropped 7 percent in pre-market trading and has declined 37 percent over the past year. The company now anticipates sales to fall by low single digits in the year ahead. Bill Neibergall / USA TODAY NETWORK via Imagn Images
Target Corporation CEO Brian Cornell with Maryland Governor Moore
Internally, Cornell acknowledged staff concerns. In a message reported by the Star Tribune, he wrote, “It’s been a tough few months… I recognize that silence from us has created uncertainty, so I want to be very clear: We are still the Target you know and believe in.” Maryland GovPics / Wikimedia
A Target store in Waukee, Iowa
Target’s troubles reflect broader tensions in the retail sector. Unlike Walmart and Costco, which sell more essential goods, over half of Target’s products are discretionary. This puts the company at a disadvantage as consumers tighten their budgets. Analysts warn that Target may need to either absorb tariff-related costs or pass them on to customers, which could risk further backlash. Philip Joens / USA TODAY NETWORK via Imagn Images
A Home Depot store in Blairsville, Georgia
Other retailers are responding differently. Home Depot has pledged to keep prices mostly stable, according to CNN. Harrison Keely / Wikimedia