It’s been a polarizing year, and the political discourse has put an unexpected target on Target’s back.
The retailer once had a reputation for being a budget-friendly store where customers could find colorful, quality items. Shopping there was meant to be a welcoming experience, but that started to change when the brand’s decisions made some customers feel unwelcome. It began with progressive strategies including diversity, equity, and inclusion (DEI) initiatives and Pride collections.
These left-leaning efforts were intended to make Target an inclusive brand, but the initiatives started to make some right-leaning customers feel unwelcome. So, the company reversed its policies, hoping to appeal to more conservative shoppers — but this made the left-leaning crowd feel dismissed.
Target’s back-and-forth has caused many progressive groups to boycott the store, but it hasn’t encouraged conservative shoppers to return. Traffic is down, the brand seems to be suffering an identity crisis, and the efforts to be more moderate have had major impacts.
Now, Target is down, but it isn’t out, and it will need to make some strategic moves to lure customers back through its red doors.
The policies that changed it all
Much of the backlash comes from Target’s January 2025 decision to roll back its DEI policies and commitments. Specifically, Target reversed its REACH (Racial Equity Action and Change) initiative and its supplier diversity efforts. In doing this, the company stopped tracking its DEI hiring metrics.
Allegedly, Target said it wasn’t abandoning diversity and inclusion in an internal memo. Rather, the retailer said it would “streamline” its approach to “address evolving customer and stakeholder expectations.” In other words, the company didn’t want to get involved in more political scandals.
Target is no stranger to becoming the center of political discourse, and that became evident in 2023 when some conservative consumers opposed its Pride merchandise. The company responded by limiting its in-store offerings after some employees reported receiving threats, and its reduced selection continued into 2024. This upset GLAAD and some progressive consumers who felt the company should have stood with the LGBTQ+ community.
In 2025, when customers learned that Target rolled back its DEI policies, boycotts began — including a 40-day effort to stop shopping at stores during Lent. As a result, foot traffic at Target declined for 11 straight weeks starting in February. The trend reversed during the last week in April (the week after Easter), but the recovery has been very slow so far.
Rolling back DEI policies caused many customers to stop shopping at Target, but it didn’t lure anti-DEI customers into the stores. In the first quarter of 2025, Target’s sales fell 2.8% compared to Q1 2024, and its forced Target to change some of its expectations for the year.
How can Target get back on track?
Target has danced between the political spectrum this decade, and at this point, it’s very unlikely to remove itself from the middle ground. The brand has seen controversy and is weathering the storm, so it’s very unlikely to reverse this effort by changing its political leaning again.
Now, the company wants to shift its attention to new policies to rebuild its identity. This is a fairly long-term plan because Target doesn’t expect a huge rebound — it already anticipates 2025’s overall sales will be lower than 2024’s. Reinvention takes time, but Target hopes these five objectives will allow it to rebrand itself by the end of the decade.
A focus on affordability
Target found itself caught in controversy surrounding DEI policies, but that’s definitely not the only politically charged topic impacting retailers. Inflation and tariffs have allowed prices to climb, but nobody is going to complain about Target lowering prices.
In 2024, Target took a stand against price hikes. It discounted thousands of products in the spring and discounted thousands more in the winter. Obviously, customers appreciate the lower costs, but for Target, this isn’t just about being cheap — it’s not even about avoiding price raises. Rather, it’s about having a lower sticker price than competitors.
These baseline price reductions will encourage customers to enter Target stores, so it’s an investment in increasing foot traffic. Then, many shoppers will leave with much larger hauls. This is where Target will make its real profit; if it means earning less on each loaf of bread sold, then so be it.
Improving in-house brands
Target is known for its vast selection of merchandise, but it has dozens of in-house brands that line the shelves. The retailer continuously works to increase this selection, and some of the collections have generated a lot of excitement (like Hearth & Hand, an extension of Chip and Joanna Gaines’ brand Magnolia).
As the retailer aims to drive $15 billion in sales growth by 2030, its private collections are going to play a key role. They generate greater profits than third-party products, which earns more for the company and allows some of the savings to be passed onto customers. Target also gets more control over the development process so it can align with other objectives (like sustainability or collaboration goals).
These in-house lines can also build loyalty with customers. Many shoppers have come to trust clothing brands like A New Day and Goodfellow Co. or cleaning products from up&up or Everspring. More than anything else, Target has built a following with its grocery lines, and people swear by certain items. This loyalty will keep shoppers returning to the store and they’ll trust the new products Target introduces.
More brand collaborations
There has been no shortage of exciting brand collaborations at Target over the past few years. Brands like Stanley, Vineyard Vines, and more recently, Kate Spade have put their products on the retailer’s shelves. This isn’t going to end any time soon, with brands like Champion and Warby Parker planning to sell their products under the red roof.
Like other initiatives, this effort aims to get more customers in the store, but it also serves to differentiate Target from other big box stores like Walmart and Costco. It also serves to lure in higher-budget customers who’ll browse other sections of the store.
As more brands shut down brick-and-mortar stores, Target’s stores will welcome some other brands into its space. But, the brand is going to be selective with its collaborations and use these partnerships to further redefine its identity. From the looks of it, Target is currently picking partners that align with offerings found in an upscale mall.
An emphasis on digital orders
If there’s one silver lining coming from Target’s decrease in foot traffic, it’s that customers are exploring other shopping options. The 2025 boycotts encouraged people not to go to Target stores, but in some cases, they were still placing orders.
Digital sales increased by 4.7% from Q1 2024 to Q1 2025, and the company saw an increase in same-day pick-ups, same-day delivery, and adoption of Shipt delivery services. This is important for Target because the in-store experience had its share of issues before people started boycotting it. Stores were suffering from an uptick in retail theft, and many essential items were being locked behind plexiglass, requiring an employee to open them for customers.
While digital orders comprise a smaller percentage of Target’s clientele than in-person shopping, that may not always be the case. As the retail landscape continues to evolve, Target customers are becoming increasingly prepared for new options.
The addition of stores
The number of stores in the US makes it possible for Target to adopt more modern shopping options. Customers are starting to drive up and have their orders delivered straight to their cars or opting to have a Shipt driver bring it straight to their door.
To make this happen, the company plans to open over 300 new stores over the next decade and incorporate new offerings. Stores may be smaller to fit in urban spaces, incorporate in-store partnerships (like an Ulta section), or hire staff to exclusively fulfill digital orders.
The new stores won’t just serve to attract shoppers, they’ll be the midpoint between online orders and the orderers. More locations will translate into faster delivery and easier transportation of inventory, so the stores will benefit customers who never even visit them.
Target’s new identity
Target has always aimed to be a middle-ground retailer — but it never wanted to find itself in the middle of the political spectrum. As it moves toward 2030, it will try to find itself as a midpoint between affordability and luxury once again.
The store will focus on affordability by decreasing prices (when possible) and offering great in-house products, but it will continue to work with partners that make higher-end items accessible to customers. By doing this, the brand will build and maintain its fan base while tapping into loyal followers of other brands.
While the 2025 boycotts caused a decline in foot traffic, that’s just one metric, and digital orders are going to continue being a priority. This will make Target’s retail stores a middle-ground between in-store discovery and online order fulfillment. As the brand increases its number of locations, customers will start to see less friction in receiving their orders, building a dependence on the store.
Of course, these transitions will only happen under ideal circumstances for Target. If it continues to make politically aligned moves, it will continue to upset customers. As of mid-2025, the brand is weathering the storm. Its decision to reverse policies has impacted its bottom line, but this transitional period could serve as a necessary reset that helps the retailer set new targets.
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