Target not too long ago highlighted its ongoing partnership with a bunch devoted to Black founders, following a turbulent yr marked by backlash, boycotts, and management modifications.
The retailer’s renewed highlight on Black companies might sign a recalibration—and maybe an effort to fix relations with communities that after helped outline its model ethos.
Partnership within the highlight
In an Oct. 20 statement, Goal pointed to its tie-up with the Russell Innovation Heart for Entrepreneurs (RICE), which helps Black small enterprise founders with schooling, mentorship, and entry to retail alternatives. By RICE’s Retail Readiness Academy, Goal has helped fund initiatives that prepare rising entrepreneurs in retail technique and enterprise scaling. The corporate additionally prolonged assist by way of HBCU applications underneath its “HBCU, At all times” collection—an ongoing effort to attach graduates with Goal’s mentorship community.
The timing is significant, notes journalist Habiba Katsha in a weblog publish for Individuals of Shade in Tech. The announcement arrives simply months after the resignation of CEO Brian Cornell, amid falling gross sales and buyer visitors. Cornell’s management had been central to Goal’s post-2020 DEI growth, together with its $2 billion Racial Fairness Motion and Change (REACH) initiative. But in January 2025, the corporate abruptly moved to finish a lot of these DEI targets, citing a “realignment” of technique and a give attention to “enterprise neutrality”.
DEI rollback and retail fallout
Target’s rollback of DEI initiatives set off a firestorm. As Fortune reported in early 2025, civil rights activists organized a nationwide boycott in protest of the corporate’s resolution to reduce its DEI infrastructure, which had been celebrated within the wake of George Floyd’s homicide.
The boycott got here throughout Black Historical past Month—symbolically amplifying the controversy—and led to dramatic declines in retailer visitors. Black enterprise homeowners whose merchandise had been featured in Goal shops voiced concern that the boycotts would possibly inadvertently hurt their very own gross sales, prompting activists to induce shoppers to purchase straight from these manufacturers on-line as a substitute.
Target sales have declined in 2025, and the stock has dropped 61% from its 2021 peak. The company also announced its first major layoffs in a decade and plans to cut 1,800 corporate jobs. While consumer boycotts have played a role, company leadership has also cited competition from Amazon and Walmart as elements in its decline.
Stress for corporations
Goal’s retreat mirrors a bigger sample throughout company America. Fortune has chronicled the rising strain on corporations to both reduce or quietly rebrand DEI applications amid shifting political and cultural winds. By mid-2025, solely a small fraction of Fortune 500 corporations continued to publish detailed variety studies, as others transitioned to euphemistic “inclusion” or “company accountability” frameworks.
Earlier this year, analysts warned that companies dismantling DEI structures risk severe reputation damage and long-term brand erosion. “If the politics in society change, your values should not,” said consultant Ponce de Leon, underscoring the trust deficit companies face when perceived as abandoning equity commitments.
Other Fortune coverage emphasized the financial risks of retreating from DEI. Boycotts, talent attrition, and eroding customer loyalty—particularly among younger and more diverse demographics—are emerging as critical market liabilities.
Next chapter for Target
Target’s decision to spotlight RICE and reaffirm support for Black-owned business development is being read as both a reputational hedge and a cultural reset. It offers the company a way to demonstrate continued engagement with racial equity without reviving the formal DEI frameworks that drew political scrutiny.
Whether this recalibration can reverse Target’s declining sales remains uncertain. But in a corporate landscape where DEI language is declining 68% in filings from S&P 500 corporations in 2025, Goal’s transfer stands out as a strategic try and steadiness commerce, conscience, and survival in a politically polarized market.
For this story, Fortune used generative AI to assist with an preliminary draft. An editor verified the accuracy of the data earlier than publishing.
