Target Takes a Hit: $12.4 Billion Wiped Out

In a dramatic shift, Target Corporation’s stock plummeted by $27.27 per share at the end of February, wiping out an astounding $12.4 billion in market value. This sharp decline coincided with the company’s controversial decision to backtrack on its diversity, equity, and inclusion (DEI) commitments, a move that ignited significant backlash from its Black consumer base.

A Wake-Up Call for Corporate America

The drop in Target’s stock value is a clear signal that Black consumers are making their voices heard. According to Dr. Benjamin F. Chavis Jr., president and CEO of the National Newspaper Publishers Association (NNPA), “Black consumers helped build Target into a retail giant, and now they are making their voices heard.” Dr. Chavis emphasized that corporations that believe they can roll back their diversity initiatives without consequences are gravely mistaken. The move has sparked a broader conversation about the importance of DEI in corporate America and the undeniable economic power of Black consumers.

Reverend Jamal Bryant’s “40-Day Target Fast”

As the backlash continues, Reverend Jamal Bryant, pastor of New Birth Missionary Baptist Church in Georgia, has called for a “40-Day Target Fast.” This initiative encourages Black consumers to stop spending at Target in protest of the company’s retreat from DEI efforts. Bryant made a powerful statement, highlighting the significant impact of Black spending power: “Black people spend $12 million a day at Target. If we withhold our dollars, we can make a statement that cannot be ignored.”

The NAACP Steps In

In addition to Bryant’s call for action, the NAACP has issued a Black Consumer Advisory in response to Target’s decision to scale back its DEI efforts. The advisory warns Black consumers to be cautious of corporate entities that retreat from their commitments to diversity. It encourages consumers to support businesses that remain steadfast in their investment in Black communities and their diversity goals. The advisory has added another layer of pressure on Target to reconsider its position or risk losing a loyal and powerful customer base.

Legal and Financial Struggles for Target

The company’s troubles don’t end with consumer backlash. Target is also facing legal challenges from multiple fronts. Shareholders have filed lawsuits against the retailer, claiming that its DEI policies hurt the company’s financial performance. Meanwhile, conservative groups have also filed lawsuits, accusing Target of discriminating against white employees and other groups through its diversity initiatives.

Consumers Hold the Power

As the financial fallout from Target’s decision continues to unfold, Dr. Chavis made a key point: “Consumers have the power to demand change, and Target is learning that lesson the hard way.” The retailer’s retreat from its DEI commitments serves as a powerful reminder that Black consumers wield significant economic influence, and their collective action can lead to real change.

Target is now facing the consequences of underestimating the commitment of its Black consumers. The company’s next steps will likely be shaped by the demands of the very customers who helped it reach its current level of success.

Original reporting by: Stacy Brown | NNPA