Target Faces Sales Decline and Leadership Changes Amid DEI Backlash

Last updated on May 30, 2025

Posted on May 27, 2025

Target is experiencing significant challenges, reporting a 3.8% drop in comparable sales for the first quarter of 2025, marking the fourth consecutive quarter of declining sales. The company's total revenue fell to $23.85 billion, missing Wall Street's expectations. Factors contributing to this downturn include reduced consumer spending on non-essential items, tariff uncertainties, and backlash over the company's rollback of diversity, equity, and inclusion (DEI) initiatives.

In response to political pressure, Target scaled back its DEI programs, including limiting Pride Month-themed merchandise. This decision led to boycotts and criticism from both conservative groups and civil rights advocates. CEO Brian Cornell acknowledged these challenges, stating that the company is not satisfied with its recent performance.

The company is also undergoing leadership changes, with Chief Strategy and Growth Officer Christina Hennington stepping down. Additionally, CEO Brian Cornell's compensation dropped to $9.9 million in 2024, a 45% decrease from the previous year, amid the company's underperformance and the ongoing DEI controversy.

To revitalize growth, Target plans to introduce over 10,000 new budget-friendly products and reorganize its management structure to improve decision-making processes.

As Target navigates these challenges, the company aims to balance its commitment to inclusivity with the need to address consumer concerns and improve its financial performance.

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