Target is facing a confluence of challenges, including declining foot traffic, boycotts stemming from the company's decision to drop diversity and equity initiatives, and concerns about the impact of tariffs on its supply chain. These issues have led to uncertainty amongst employees.
CEO Brian Cornell addressed these concerns in an email to employees, acknowledging the “silence from us has created uncertainty.” He reaffirmed Target's commitment to inclusivity and aimed to reassure employees of the company's continued dedication to its values. He also mentioned the impact of recent economic changes and trade issues, highlighting the potential supply chain crisis.
Target's financial performance has been negatively impacted. The company reported a decline in net sales and operating income for the 4th quarter of 2024. The full impact of the boycotts and DEI backlash is expected to be reflected in the 1st quarter 2025 results.