Target's slumping sales

Major retailer Target reported that comparable sales, which include in-store and online sales, fell 3.8% in the most recent quarter. — Image credit: Corbis News/Getty Images

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Summary

Sales falling

Comparing to the first quarter of 2024, Target's sales fell 2.8%. The company believes there are a number of reasons for the slump.

Shifting policy

Policies from the government, including rising tariffs and a shift in DEI policies, have made a significant impact on Target, including an ongoing social media boycott, started due to Target ending DEI programs.

The competition

Due to tariffs, Target's rival Walmart has already announced that in-store prices will be rising soon, due to tariffs. The company is also cutting 1,500 jobs as part of a restructuring effort.

Full story

Major retailer Target reported that comparable sales — which include in-store and online sales – fell 3.8% in the most recent quarter ending on May 3. The company announced in its earnings report that its total first-quarter revenue came in at $23.8 billion, down from $24.5 billion in 2024 — a 2.8% decline year-over-year.

What’s causing the sales decline?

CEO Brian Cornell cited several factors behind the slump, including reduced spending on nonessential items, a dip in consumer confidence and an ongoing social media boycott campaign.

The backlash followed Target’s decision earlier this year to end its diversity, equity, and inclusion (DEI) programs, aligning with the executive orders from President Donald Trump, who eliminated DEI mandates across the federal government during his first week in office.

Target’s DEI shift

Target also scaled back its LGBTQ+-themed merchandise in 2023, which drew criticism from both sides of the aisle. In a Wall Street Journal report, Cornell said the company remains “focused on being a place where our guests and our teams and our partners feel included,” but acknowledged that the boycott “played a role in our first quarter performance.”

Meanwhile, several other major companies, including Google, Amazon, Meta, Lowe’s and Walmart, have scaled back DEI initiatives under public and political pressure.

Cornell also pointed to Trump’s renewed tariffs on imports from China and other countries as growing pressure on retailers. While he said raising prices would be a last resort, he added that Target may work with suppliers, adjust order timing or shift production to other countries to manage the impact.

How is Walmart doing?

Walmart, by contrast, has already announced that it will raise prices from May to June due to rising costs from the tariffs. President Trump responded on Truth Social, writing that Walmart should “EAT THE TARIFFS” rather than pass the cost to “valued customers.”

On Wednesday, May 21, Walmart announced plans to cut 1,500 jobs in a restructuring aimed at reducing expenses. According to The Wall Street Journal, the layoffs will affect workers in global tech operations, e-commerce and advertising.

Still, Walmart continues to outperform Target in sales — marking its 13th consecutive quarter of growth ahead of its rival.

Jason Morrell (Executive Producer), Mathew Grisham (Digital Producer), and Shianne DeLeon (Video Editor) contributed to this report.

Tags: China, Donald Trump, Walmart, Target, Tariff

[Craig Nigrelli]

Major retailer Target reported that comparable sales – which include in-store and online sales – fell 3.8% in the most recent quarter ending May 3. Total first-quarter revenue came in at $23.8 billion, down from $24.5 billion in 2024 – a 2.8% decline year-over-year, the company announced in its earnings report.
CEO Brian Cornell cited several factors behind the slump: reduced spending on non-essential items, a dip in consumer confidence, and an ongoing boycott campaign on social media.
The backlash followed Target’s decision earlier this year to end its diversity, equity, and inclusion (DEI) programs, aligning with the new executive orders from President Trump, who eliminated DEI mandates across the federal government during his first week in office.
Target also scaled back its LGBTQ-themed merchandise in 2023, which drew criticism from both sides of the aisle. In a Wall Street Journal report, Cornell said the company remains ”focused on being a place where our guests and our teams and our partners feel included,” but acknowledged the boycott “played a role in our first quarter performance. “
Meanwhile, several other major companies – including Google, Amazon, Meta, Lowe’s, and Walmart – have also scaled back DEI initiatives under public and political pressure.
Cornell also pointed to Trump’s renewed tariffs on imports from China and other countries as growing pressure on retailers. While he said raising prices would be a last resort, he added that Target may work with suppliers, adjust order timing, or shift production to other countries to manage the impact.
Walmart, by contrast, has already announced it will raise prices beginning late May into early June due to rising costs from the tariffs. President Trump responded on Truth Social, writing that Walmart should “EAT THE TARIFFS” rather than pass the cost to “valued customers.”
On Wednesday, Walmart announced plans to cut 1500 jobs in a restructuring aimed at reducing expenses. According to the Wall Street Journal, the layoffs will affect workers in global tech operations, e-commerce, and advertising.
Still, Walmart continues to outperform Target in sales – marking its 13th consecutive quarter of growth ahead of its rival.

Why this story matters

The decline in Target's sales, alongside changing diversity, equity, and inclusion (DEI) policies and ongoing economic pressures, highlights how consumer behavior, corporate strategy, and political influences are shaping the current retail environment.

Tariffs and economic context

Ongoing tariff increases and the risk of higher costs are prompting major retailers like Target and Walmart to consider changes in pricing and operations, affecting both their business strategies and consumers.

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Synthesized coverage insights across 183 media outlets

Behind the numbers

Target reported a 2.8% decrease in quarterly sales to $23.85 billion, below last year’s $24.53 billion, and missed Wall Street’s $24.23 billion projection. Comparable store sales dropped 3.8%, including a 5.7% decline in physical stores but a 4.7% rise in online sales. Transactions were down 2.4% and the average spending per transaction fell by 1.4%.

Community reaction

Community and advocacy groups, especially those concerned with racial and LGBTQ+ representation, responded to Target's rollback of DEI initiatives with organized boycotts. Local communities were impacted by both reduced engagement with Target stores and increased public discussion about corporate responsibility for inclusivity and representation. Conservative groups also responded, viewing the company’s DEI programs as contentious.

Quote bank

“We’re not satisfied with these results, so we’re moving with urgency to navigate through this period of volatility... We’ve got to drive traffic back into our stores or visits to our site,” said Target CEO Brian Cornell. Rev. Jamal Bryant stated, “Corporations will see they can’t take Black dollars for granted and that we’re in here for the long haul.”

Sources

Bias comparison

Media outlets on the left framed Target’s sales decline predominantly as a consequence of its retreat from progressive values, emphasizing the “betrayal” in scaling back DEI initiatives and spotlighting the resulting “public revolt” and customer boycotts, imbuing coverage with emotionally charged language that paints the retailer’s woes as partly self-inflicted and culturally regressive.
Not enough coverage from media outlets in the center to provide a bias comparison.
Media outlets on the right focused on tariffs and economic headwinds as primary drivers, portraying DEI rollbacks as a pragmatic response to “pressure” from conservative activism with subdued mention of backlash, deploying more neutral or deferential rhetoric.

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Media landscape

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191 total sources

Key points from the Left

Trade and transportation jobs dropped in the Inland Empire, with the unemployment rate rising to 4.9% last month, according to the California Employment Development Department.
Target's sales fell by 3.8% for stores open at least a year, impacted by backlash to its diversity, equity, and inclusion rollback and tariffs, according to multiple reports.
Consumer boycotts against Target due to its diversity, equity, and inclusion changes hurt the retailer's business, with a notable 40-day boycott led by Rev. Jamal Bryant reported.
CEO Brian Cornell stated that Target is striving to increase customer traffic amid significant challenges, including competition and changing consumer confidence.

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Key points from the Center

Target reported a 2.8% drop in first-quarter sales to $23.85 billion on May 3, falling short of Wall Street's $24.23 billion expectation.
This decline followed a 40-day consumer boycott led by a Georgia megachurch pastor protesting Target's rollback of diversity, equity, and inclusion programs.
The company also faces tariff uncertainty and customer concerns about the economy, impacting sales of discretionary items like fashion and home furnishings.
Comparable store sales fell 3.8%, transactions dropped 2.4%, and the average purchase amount decreased 1.4%, while Target earned $1.04 billion in the quarter.

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See Hide headlines from Center sources 89 sources

Key points from the Right

Target's sales dropped 2.8% to $23.85 billion in the first quarter, falling short of Wall Street's expected $24.23 billion according to FactSet.
Customer spending declined due to uncertainty over tariffs and boycotts related to Target's diversity, equity, and inclusion initiatives, according to The Associated Press.
Target has cut its annual sales forecast for 2025 to a low single-digit decline.
Sales from comparable stores and online decreased by 3.8%, prompting Target to introduce 10,000 new items aimed at attracting cautious customers.

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