Target’s diversity, equity, and inclusion (DEI) program rollback is a particularly shameful development in the immediate wave of anti-DEI actions stemming from President Trump’s executive order to terminate “all discriminatory programs, including illegal DEI…mandates, policies, and programs…” in the federal government. As a company that thrives on cultural relevance, Target’s DEI stance was going to be controversial no matter what. Why, then, did it think it could stick its head in the sand and not get shot at?
What is there to be said about Minnesota’s most popular business folding under such early and indirect pressure from the Trump administration? Consider other popular companies that have decided to double down on their DEI commitments (e.g. Costco, Apple, Delta). Also consider how vocal Minnesotan leaders such as Governor Tim Walz have been in their reaffirmation of DEI’s public value.
Sure, not every market Target operates in is as DEI-friendly as Minnesota. But the state’s beloved retailer never stood to lose more than other Fortune 500 peers if it stood firm. Now, many business analysts point to Target’s flip-flopping on DEI as a key factor in the sustained dive of their stock price.
Minnesota’s Role In Target’s Post-DEI Reality
Target’s commitment to DEI has largely been reactive. Like many corporations, it took its greatest strides into DEI commitments post-George Floyd — a local tragedy just a 10-minute drive away from Target’s Minneapolis headquarters.
While it continues to run its monthly diversity playbook, it remains to be seen if the national Target Boycott is contributing to Target’s decreasing foot traffic as much as the current nationwide downturn in non-essential spending. Either way, it is becoming more evident that Target’s DEI switch-up meant more than the actions of fellow DEI ditchers such as McDonald’s and Walmart (who don’t seem to be hurting at all).
Minnesota’s social climate set the stage for Target’s big prior commitments. The state’s continued DEI advocacy is providing a starkly contrasting background for Target’s current political moves.
DEI initiatives have been under fire since John F. Kennedy first introduced affirmative action in a 1961 executive order. The initial focus of 1960s and 1970s DEI policy was outlawing institutional discrimination. These policies came under fire from President Ronald Reagan in the 1980s, inspiring a wave of research and thinking that resulted in “the business case for diversity.” This turned reactionary anti-discrimination work into more proactive DEI work reframed as a proven competitive business advantage as opposed to a legal constraint.
Today, DEI work ranges from affinity groups for employees of marginalized identities to strategic long-term investments in underrepresented markets and talent pools.
As Minnesota’s largest business by revenue (United HealthGroup) is also suffering from intense public backlash for perceived ethical failure, Target’s current ordeal further highlights how real the so-called “culture war” has become in daily American life. “Eating the rich” and “authoritarianism” aren’t just things Americans say anymore — they’re happening.
Culturally, Target is more than a superior alternative to Walmart in the Twin Cities: it is a way of life. That is hardly an exaggeration in a moderately Blue state, surrounded by Red states, that is in love with “nice” brands (e.g. The North Face, Olipop) and seasonal Starbucks offerings.
Target was the physical experience of Amazon minus the cheap feeling and awful PR disturbing your peace. You didn’t have to think about Jeff Bezos building rockets while his employees peed in water bottles. You could traipse through aisles, venti mocha frap spice chai latte in hand, and buy everything you needed and just about anything you wanted.
Target made blissful ignorance possible for consumers. Despite their best efforts, they no longer have that power.
Will Target Keep Missing The Mark?
The retail giant’s success in Minnesota used to be a given, but Minnesotans are collectively more resolute in their DEI stance than their previously favorite place to shop. A heritage month-themed entry display won’t be enough for Target to please everyone in 2025. In trying to please everyone, Target seems to continue pleasing no one.
