• by Sarah Mahoney , March 25, 2025

 The "Target Fast," led by Black churches, encourages people to shun the retailer until Easter.

Conventional brand wisdom says boycotts don’t work. But that idea looks less wise by the week -- especially for brands that built their equity on inclusion.

Target is feeling the heat. Foot traffic to the retailer fell 9% in February, according to Placer.ai -- one of the sharpest drop among major chains singled out by pro-DEI advocates for rolling back diversity commitments. Walmart, Best Buy, and McDonald’s also saw declines, but none as steep. While executives haven’t commented on ongoing boycotts, some signals are hard to ignore. Target reportedly disabled social media comments on certain posts as negativity surged.

This pressure comes amid a sustained effort led by pro-DEI organizers. Targeted weeklong boycotts of Amazon and Nestlé followed a one-day Economic Blackout on Feb. 28. Lent has brought further activism: "Target Fast,” a campaign organized by Black churches, encourages supporters to avoid the retailer through Easter. That movement may be resonating. In the weeks of March 3 and March 10, Target’s traffic dropped 6.8% and 7.1%, respectively, while Costco -- a company that has publicly defended the use and value of DEI practices -- saw traffic rise 7% in both weeks.

None of this means boycotts are definitively tanking sales. Citing concerns about consumer spending, broader economic issues and the impact of tariffs, Target projected flat to slightly higher revenue in the year ahead, with first-quarter sales expected to dip from $24.5 billion to $24.2 billion,

“Even a relatively minor shift affects margins,” says Valeria Piaggio, global head of sustainable growth and transformation at Kantar. “Those declines can be meaningful, even if they’re small. And more importantly, they are a signal of eroding trust.”

That shift is forcing brands to rethink what used to be safe assumptions -- including the idea that boycotts come and go without lasting impact. That’s especially true as investors watch Tesla’s stock price continue to fall and the market for used Teslas crumble.

This is an unsettling moment for marketers. Damage may not show up cleanly in quarterly revenue, but it’s happening nonetheless -- in brand perception, emotional loyalty, and long-term equity. “Marketers don’t just want to avoid being hated,” Piaggio tells Marketing Daily. “They want to be loved, trusted and believed in. That emotional connection is what drives value — and that is what’s at risk here."

Indeed, Piaggio argues that many brands underestimate how personal DEI feels to consumers. Kantar’s ongoing research shows that while about 60% of consumers say diversity issues don’t directly affect them, that number is shifting as more people see themselves in the conversation. “We’re seeing people take action because they feel DEI is about their lives -- who they are and who they want to support,” she says.

Kantar is conducting a new wave of research to better understand those shifting perceptions. The project will include social listening, survey data, and neuroscience to capture consumers’ emotional responses to brands. The new data will also offer a more nuanced look at identity -- including veterans, women, and a broader understanding of the LGBTQ+ community. “When you look at topline numbers, you get one story,” Piaggio says. “But when you look closely, a more complex picture emerges.”

Part of that complexity involves brand coherence. While Walmart has also scaled back DEI, that retailer hasn’t drawn the same level of scrutiny. Why? Possibly because its brand promise has always been about price and convenience. On the other hand, Target spent years investing in a purpose-led identity centered on inclusion, from signage and product design to in-store experiences.

“Target used to be one of the clearest examples of an inclusive brand,” Piaggio says. “You can’t build your identity around that and then walk it back without consequences. That breaks the brand narrative -- and the consumer contract.”

There’s no easy fix for broken trust. “Brand loyalty isn’t just about product or price,” she adds. “It’s about alignment. If consumers no longer believe you mean what you say, the emotional foundation of the relationship collapses.”

This growing volatility has implications beyond Target. As political divisions continue to sharpen, nearly every purpose-driven brand is exposed. And as consumers become more vocal -- and more organized -- around perceived betrayals, even a fringe boycott can do outsized reputational harm.

“Usually, a boycott will fizzle out because there’s not enough energy around it,” Wharton marketing professor Americus Reed recently commented in Bloomberg. “But we’re in a new world order where these things have broken through the national consciousness.”

And with a never-ending news cycle, consumers are "not given a chance to forget.”