Highlights support for Black founders after DEI backlash

The retailer’s renewed spotlight on Black businesses could signal a recalibration — and perhaps an effort to mend relationships with communities that once helped define its brand’s ethos.

Partnership in the spotlight

On October 20th statementTarget noted its affiliation with the Russell Innovation Center for Entrepreneurs (RICE), which supports Black small business founders with education, mentorship, and access to retail opportunities. Through the RICE Retail Readiness Academy, Target has helped fund initiatives that train budding entrepreneurs in retail strategy and business expansion. The company also provided support through HBCU programs under the “HBCU, Always” series – an ongoing effort to connect alumni to Target’s mentoring network.​

Timing is important, notes journalist Habiba Katsha In a blog post for People of color in technology. This announcement comes a few months after CEO Brian Cornell resigned, amid declining sales and customer traffic. Cornell’s leadership was pivotal to Target’s post-2020 expansion into DEI, including its $2 billion Racial Equity Action and Change (REACH) initiative. However, in January 2025, the company suddenly moved to end many of those DEI goals, citing a “realignment” of strategy and a focus on “commercial neutrality.”​

Target’s retreat from DEI initiatives has sparked a firestorm. like luck Civil rights activists reported in early 2025 Organized a national boycott In protest of the company’s decision to scale back DEI infrastructure, which was celebrated in the wake of the killing of George Floyd. ​

The boycott came during Black History Month, symbolically amplified the controversy, and led to a significant drop in store traffic. Black business owners whose products have appeared in Target stores He expressed his concern That the boycott might inadvertently hurt their sales, prompting activists to urge consumers to buy directly from those brands online instead.

Target sales in 2025 are down, and the stock is down 61% from its peak in 2021. The company also announced its first major layoffs in a decade, and plans to cut 1,800 jobs at the company. While consumer boycotts played a role, company leadership also pointed to competition Amazon and Walmart As factors in its decline.

Pressure on companies

Target’s decline reflects a larger pattern across corporate America. luck He chronicled the growing pressure on companies to either scale back or quietly rebrand their DEI programs amid shifting political and cultural winds. By mid-2025, only a Small portion Many Fortune 500 companies have continued to publish detailed reports on diversity, while others have moved to euphemistic “inclusion” or “corporate responsibility” frameworks.​

Earlier this year, analysts warned that companies that unbundle DEI structures risk severe reputational damage and long-term brand erosion. “If politics change in society, your values ​​shouldn’t change,” said consultant Ponce de Leon, underscoring the lack of trust companies face when they are seen to be abandoning equity commitments.​

last luck The coverage emphasized the financial risks of withdrawing from DEI. Boycotts, talent attrition, and the erosion of customer loyalty — especially among younger, more diverse demographics — are emerging as critical market liabilities.​

Whether this recalibration is able to reverse Target’s sales decline remains uncertain. But it’s in the corporate landscape where the language of DEI exists 68% decrease In filings from S&P 500 companies in 2025, Target’s move stands out as a strategic attempt to balance commerce, conscience and survival in a politically polarized market.

​For this story, luck Use generative AI to help with the rough draft. An editor verified the accuracy of the information before publication.