retail
Target's Sales Dip Amid Boycott, But Other Factors Are in Play
- by Sarah Mahoney @mahoney_sarah, March 4, 2025
Target reported a 3.1% decline in sales for the fourth quarter, with total revenue slipping to $30.9 billion from $31.9 billion in the prior year. While these results were better than expectations, the company warned of a challenging quarter ahead, projecting a slight decline in February sales.
When discussing its latest earnings, Target did not cite the consumer-led boycotts sparked by its Jan. 24 announcement to scale back DEI policies. Instead, the retailer attributed the slowdown to bad weather, economic uncertainty, and consumer concerns over tariffs. The fourth quarter ended Feb. 3.
Some early indicators, however, suggest the boycott may be having an impact. A grassroots movement urged a February-long boycott of major retailers, including Target, in recognition of Black History Month. And many consumers joined in the February 28 Economic Blackout. Preliminary data from Placer.ai shows that Target visits on Feb. 28 dropped 10.7% compared to the average of the previous five Fridays, with February traffic down 9% year over year.
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R.J. Hottovy, head of analytical research at Placer.ai, notes that many retailers experienced year-over-year declines in weekly visits throughout February, pointing to post-holiday spending pullbacks, lower consumer confidence, and economic uncertainty as contributing factors. He emphasizes that isolating the specific impact of boycotts is difficult, as most retailers saw traffic declines in line with recent trends.
Placer.ai data shows that Walmart, Starbucks, McDonald’s, and Best Buy also saw February declines compared to 2024, albeit not as marked as those experienced by Target. Meanwhile, Costco, which has continued its DEI initiatives, saw monthly traffic rise by 2.2% compared to February of last year.
Determining the broader impact of such boycotts remains complex. Captify, a search intelligence company, reports an 88% rise in searches related to companies that have made public statements about DEI. However, sentiment analysis of these searches shows mixed results: In the last six weeks, Costco saw a 1.2% decline in sentiment, while JP Morgan, which has watered down its DEI policies, experienced a 0.9% increase. Target’s sentiment slipped 0.6%.
The pressure on Target may persist. Dr. Jamal Bryant, a prominent Atlanta pastor, and other civil rights groups are calling for an extended 40-day shopping “fast” from Target.
“Target seems to be challenged on many fronts,” says John Harmon, director of technology research for Coresight Research. The company initially forecast flat fourth-quarter sales but later revised its expectations upward, citing stronger holiday performance. “But even with a 1.5% gain in comparable sales for the quarter, that’s disappointing compared to Walmart,” Harmon notes.
Walmart, in contrast, posted a 5.1% sales gain for the same period, further highlighting the pressures Target faces amid shifting consumer behavior and broader economic challenges.
Target has found itself in a tough spot after trying to navigate two opposing consumer groups, and its handling of DEI policies seems to have done more harm than good. In 2023, conservative backlash over its Pride merchandise led to store disruptions, pulled products, and a staggering $14 billion loss in market value. Then in early 2024, after announcing it would scale back its DEI initiatives, progressive activists turned on the company, calling for a February-long boycott and a 40-day “shopping fast.” While Target attributed its 3.1% fourth-quarter sales drop and 9% decline in February foot traffic to bad weather and economic uncertainty, other retailers didn’t take the same hit. Walmart, which avoided controversy altogether, posted a 5.1% sales gain. The bigger issue isn’t just the boycotts—it’s the fact that by trying to appease both sides, Target has lost trust across the board. This raises a bigger question: Should companies get involved in politics at all? While some brands successfully align with specific ideologies, most major retailers rely on a broad customer base. Taking a stand—and then backtracking—often does more damage than simply staying out of the fight. If a company chooses to get political, it has to fully commit and accept the consequences, but for most brands, staying neutral and focusing on price, quality, and service is the smarter long-term play.