Target is facing mounting financial pressure as the retail giant reports a fourth consecutive month of declining revenue—a troubling sign that consumer sentiment is shifting in response to the company’s retreat from its once-prominent diversity, equity, and inclusion (DEI) efforts.
According to Fortune, the revenue dip comes alongside a reputational hit, with data from analytics firm Caliber showing a steep 15.4% drop in Target’s Governance Score—from 65 in January to 55 in May 2025. That score, which reflects public perception of ethical business practices, declined far more than the 1.6% average among the top 30 Fortune 500 companies during the same period.
The financial slump mirrors falling foot traffic, which has steadily declined each month since February: -9% in February, -6.5% in March, -3.3% in April, and -1.6% in May. Analysts say the trend is unlikely to reverse anytime soon. “The rebounds are not as fully bounced back; they just go partway,” said Caliber CEO Shahar Silbershatz. “There is a negative trend here. This is going to continue to snowball, and it’s a problem.”
The downturn follows Target’s quiet pullback from DEI programming after former President Donald Trump’s executive order targeting such initiatives in federal agencies. The move sparked criticism across the political spectrum and alienated parts of the company’s core consumer base, including Black shoppers who have long supported the brand.
In March, civil rights leaders Rev. Jamal Bryant and Rev. Al Sharpton called for a 40-day boycott of Target, citing the company’s lack of commitment to the communities that have fueled its success. “Black people spend upwards of $12 million a day,” said Bryant. “We’re asking people to divest from Target because they have turned their back on our community.”
Target is also facing increasing polarization in how it’s perceived politically. Among Democrats, the brand’s Integrity Score dropped eight points to 63, while Republican ratings held steady at 60. The split echoes similar patterns seen with brands like Tesla following politically charged leadership changes.
CEO Brian Cornell has acknowledged the company’s underperformance, telling The Street he’s “not satisfied” with current results and that Target is actively seeking ways to re-engage disillusioned customers. “We know this is an exceptionally challenging environment,” he said, “but we’re listening—and we’re committed to earning back trust.”
Still, as the revenue slide extends into a fourth straight month, industry observers warn that Target’s brand loyalty may be harder to recover than expected.