On Jan. 8, immigration officials detained two Target employees, who are U.S. citizens, during their shift in Richfield, Minnesota. Videos of the arrest quickly spread on social media.
But Target eliminated its three-year DEI goals and stopped participation in external diversity surveys, after the election of President Donald Trump, who opposes such policies.
Target has not committed to these specific demands, but the company has continued to work with organizations such as the Russell Innovation Center for Entrepreneurs, which supports Black small business founders with education, mentorship, and access to retail opportunities. The company also supported HBCU programs under its “HBCU, Always” series, an effort to connect graduates with Target’s mentorship network.
Boycotts coincide with lower profits and foot traffic
“Target is currently grappling with how to create a better experience for customers, because over the past few years, the experience in store isn’t as good as it used to be,” he said. “There are issues like out of stocks on some products, and that’s really just putting customers off going to Target as much as they once did, or spending as much there as they once did.”
“There’s too much friction from the experience,” he said, adding that consumers are more cautious about spending on discretionary items and are weighing shopping with other retailers. “Target seems to be aware of this, and it says that it is taking action, but certainly over the past year, it has been a real problem.”
In its Q3 earning call in November, Chief Operating Officer Michael Fiddelke, who will take over as CEO, told analysts the company is investing in resources to improve in-store stock, such as using machine learning to optimize movement between suppliers and stores.
“It’s helping us move inventory more efficiently, improve our reliability for everyday frequently purchased items, and further improve in stocks,” he said.
New crisis, new approach
Now Target is facing a new crisis, this time over ICE.
The company has not issued any public statements about ICE operations in their stores or about the two employees who were detained. Target told Fortune it has no comment on the strike in Minnesota or the backlash against the company.
Bloomberg reported that employees are sharing frustration over the company’s silence on internal Slack channels. Some have sent a letter to Target’s ethics team expressing concern about the lack of a statement from the company and seeking guidance on how to handle law enforcement operations. Staffers from at least two stores have told managers they’re too afraid to come into work, sources told Bloomberg.
On Jan. 15, more than 100 clergy and community members gathered at Target’s downtown Minneapolis store to present demands and ask to speak to the CEO. They urged the company to call for an immediate end to the ICE operations in the state, to deny ICE agents entry into stores without a signed judicial warrant, and to call for Congress to stop funding ICE.
Cornell agreed to meet with representatives from the protest on Thursday, according to the organizers. Clergy members involved in the meeting did not respond to a request for comment.
Saunders said Target often sees itself as a community retailer, so it’s important for the company to give community leaders a space to air their views.
He added that Target’s messaging to employees about ICE was reasonable but that everyone is hoping for a change in operational strategies and customer experience.
“It’s not going to be enough for some people,” Saunders said. “The vast majority of customers are very much in the middle. They’re interested in politics. They may have views, but they don’t let it affect their shopping decisions, not for these kind of things.”
