When the Winds Shift, Will Your Values Hold? A Lesson from Target’s DEI Collapse (Part I)
What happens when a company tries to please everyone…and ends up standing for nothing?
That’s the question corporate leaders are quietly asking behind closed doors right now, as they watch Target, once a DEI frontrunner, get pulled into legal battles, boycotts, and backlash from every direction.
Whether you're feeling unsure about how loud to be right now, afraid to stand firm on your values, or wondering if this whole DEI thing is even “worth it” in today’s climate—I see you. And I’m writing this for you.
Because what’s happening at Target isn’t just their crisis. It’s a cautionary tale about what happens when companies shift with the political wind without anchoring themselves in something deeper.
This is Part I of a two-part conversation. In this first piece, I’ll walk you through what happened at Target and how we got here. In Part II, we’ll unpack the bigger questions:
What could Target have done differently?
What can we learn from this moment?
And how do we make sure that equity isn’t the first value to unravel when times get tough?
Let’s dig in.
Imagine trying to show everyone you’re on their side and ending up in everybody’s crosshairs. That’s where Target finds itself in 2025.
On one side, critics say the company gave in to anti-woke pressure and retreated on DEI. On the other, conservatives accuse Target of pushing left-wing ideology. Once praised as a retail leader in diversity and inclusion, the company now stands confused, dragged into court, and caught between cultural fault lines. And the fallout has been anything but abstract: it’s legal, financial, reputational, and deeply human. What’s happening now could define how corporate America handles equity and inclusion going forward.
From Pride to Lawsuits: Target’s Story
For years, Target wore its DEI badge proudly. It backed same-sex marriage as early as 2014. It allowed transgender customers and employees to use bathrooms matching their gender identity. And after George Floyd’s murder in its hometown of Minneapolis, the company committed over $2 billion to Black-owned businesses by 2025.
But all that changed on January 24.
In an internal announcement, just days after a new Republican administration took office, Target said it would:
Eliminate its minority hiring targets
Dissolve its executive DEI council
Retire its REACH (Racial Equity Action and Change) program
Rebrand “Supplier Diversity” as “Supplier Engagement”
Introduce a new umbrella framework: “Belonging at the Bullseye”
The company explained the move as a response to the “evolving external landscape.” That’s corporate speak for: the political climate is shifting, and we’re adapting.
Backlash from the Left
The change set off a firestorm, especially from the very people who once championed Target.
In an open letter in the LA Times, Anne and Lucy Dayton, daughters of Target’s founder, called the rollback a betrayal of the company’s founding values.
Civil rights groups weren’t far behind. Rev. Jamal Bryant, a prominent Atlanta pastor, launched a nationwide 40-day boycott, dubbed the #TargetFast, beginning in early March. Over 200,000 people pledged to stop shopping at Target and redirect dollars to Black-owned businesses.
Several Black-owned businesses that sold through Target felt the heat. The Wall Street Journal reported that Black-owned vendors inside Target, like Play Pits, Lamik Beauty, and Beautiful Curly Me, saw sales plunge by 20–30% after the DEI controversy and boycott reduced store traffic.
Backlash from the Right
While DEI supporters boycotted Target for backing down, conservative groups and politicians were already furious about its original Pride campaigns.
After its 2023 Pride Month collection, which included Pride merchandise, conservative media erupted. Some customers vandalized displays. Target responded by pulling products from select stores and moving merchandise away from store entrances in certain regions.
That move provoked LGBTQ+ advocates and alienated progressive shoppers. And it didn’t stop the bleeding.
Target’s stock dropped over 12% in just a week, losing nearly $9 billion in market value. It was the worst stock slide the company had seen in years.
Backlash from Within
While DEI supporters were calling out Target for retreating, another storm was quietly brewing—from the investment side.
Investors started filing lawsuits. On January 31, 2025, the City of Riviera Beach Police Pension Fund a class-action suit. Their allegation was that Target defrauded shareholders by making misleading claims about its ESG and DEI strategy.
Then on February 20, the Florida State Board of Administration, a state-run pension fund, filed a for securities fraud. Their legal team claimed Target’s leadership failed to disclose foreseeable risks related to the Pride campaign and the DEI backlash, which ultimately caused billions in shareholder losses.
These weren’t fringe lawsuits. They were filed in federal court and backed by heavyweight pension funds.
On January 31, 2025, the City of Riviera Beach Police Pension Fund filed a class-action lawsuit against Target. Just weeks later, on February 20, the Florida State Board of Administration, which manages billions in public retirement funds, filed a second suit.
Both lawsuits alleged that Target had misled shareholders—not about profits, but about purpose.
Here’s the heart of the claim:
Target had long positioned its DEI and ESG strategies as core business priorities. It told investors these values were part of the company’s growth engine, brand loyalty, and risk management strategy. Publicly, it talked about DEI as if it were structural—baked into the company’s DNA.
But the moment political pressure intensified, the company appeared to abandon those commitments without warning—and without disclosing the reputational and financial risks tied to that retreat.
In the eyes of the investors, that’s not just inconsistency. That’s misrepresentation.
They’re not suing because Target supports DEI.
They’re suing because the company said one thing, did another, and lost them billions along the way.
And this is where the story takes a turn that every corporate leader should be watching closely:
When DEI is framed as a pillar of your business strategy, walking it back without clear justification isn’t just a brand issue—it becomes a legal and fiduciary issue.
These lawsuits are now being consolidated in federal court. A judge has already denied Target’s motion to dismiss, which means the case is moving into the discovery phase. That means emails, internal documents, executive testimony—the whole picture—will soon come to light.
And for every other company making bold public statements about equity, this sends a message:
If you use DEI to boost your reputation or secure investor confidence, you better be ready to stand on it—or face the consequences when you don’t.
What’s Going on Now (as of June 2025)
Target’s stock has yet to recover fully. Foot traffic in stores fell 6.8% year-over-year by early March.
In Q1 2025, Target reported a 3.8% drop in comparable sales, and in-store revenue fell 5.7%, while online sales rose modestly.
The lawsuits are now being consolidated in federal court. A judge has denied Target’s motion to dismiss, which means the lawsuits move into the discovery phase, where both sides dig into evidence, emails, and depositions.
Meanwhile, CEO Brian Cornell met privately with Rev. Al Sharpton in April. Sharpton called the meeting “candid and constructive” but stressed that the damage wasn’t yet repaired.
Now, the truth is, this isn’t just a story about Target. It’s a mirror. A mirror showing what happens when companies say they value diversity, equity and inclusion, but their actions shift with public pressure. This is a mirror reflecting just how quickly progress can be undone when leadership gets uncomfortable, distracted, or afraid. It’s a mirror we all need to look into, because no organization is too big, or too principled, to end up right here.
If you’re leading anything right now—your team, your function, your company, you need to be asking:
How strong is our foundation, really?
What happens to our values when the headlines turn hostile? Or Political?
Are we building something that can withstand resistance, or are we hoping no one asks too many questions?
Because the DEI backlash we’re seeing isn’t theoretical. It’s strategic. And it’s testing every company’s resolve.
In Part II, I won’t just tell you what Target could’ve done differently, I’ll give you a blueprint for what to do now to protect your values around equity, diversity, and belonging before you’re the one in the crosshairs.
We’re not just talking about risk management. We’re talking about reputational survival. Cultural leadership. And whether the people watching you, from your employees to your customers, still believe you mean what you say.
Part II is the conversation your C-suite doesn’t know it needs. But you will.
I’ll see you there.
