Retailers target There is pressure on multiple fronts. After rolling back diversity, equity and inclusive initiatives, we are faced with pushback. It’s fighting hard competition with light competitors like Amazonand the company is exposed to a decline in consumer spending amid inflation and tariff volatility than its rivals Walmart and Costco.
According to Placer.ai, the target’s decision to scale back major DEI programs has caused a nationwide boycott and a 11th consecutive week of pedestrian traffic between January 27th and April 13th.
However, the company’s challenges go further than tariffs and politics. Experts say that most of the issues are self-harm. Excessive inventory, shortages of staff and locked inventory all contribute to fixed revenue and falling stock prices.
“We’re committed to providing a range of services to our customers,” said Joe Feldman, Senior Managing Director, Telsey Advisory Group. “They had to get a huge discount to clear through a lot of stock. Things were beginning to get back on track. Then they were hit by Day,” he said, referring to the boycott.
According to Indagari data, Target customers spend relatively the same quarter per quarter in 2025, the same as 2021, but increased purchases from competitors Walmart and Costco.
GlobalData Managing Director Neil Saunders has stated operational decisions such as targets transferring market share, including product lockups, lack of new fresh partnerships with brands and designers, and lack of staff. According to GlobalData, between 2021 and 2024, Target lost 0.18% of market share, while Amazon, Costco and Walmart won 0.07%, 0.15% and 0.75% respectively.
“Target still has a lot of love,” Sanders said. “But consumers are definitely spreading spending thinner. They are definitely diverting some of that spending from target to other retailers.”
Target rejected CNBC Digital’s request for an interview, but in a statement the company said in a statement that “we took part in a commitment to staying subtly in 2024 and generating profitable growth,” but that “these results have led to unexpectedly high levels of fluctuation throughout the year.” “We are confident that by controlling what we have control, listening closely to consumers and focusing on what distinguishes our targets, we can continue to create value for our stakeholders,” he added.
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