Discount retailer Target ($TGT) has become the latest U.S. company to announce that it’s rolling back its diversity, equity and inclusion (DEI) programs.
In a memo sent to employees, the Minneapolis-based company said it will end its three-year DEI goals, stop reports to external diversity-focused groups such as the Human Rights Campaign’s Corporate Equality Index, and end a program focused on carrying more products from minority-owned businesses.
“As a retailer that serves millions of consumers every day, we understand the importance of staying in step with the evolving external landscape, now and in the future – all in service of driving Target’s growth and winning together,” said the company in its memo.
Trump Era Changes
With the end of its DEI initiatives, Target joins a growing list of companies such as Meta Platforms ($META), Walmart ($WMT), and McDonald’s ($MCD) that have abandoned inclusive policies and goals. Companies have faced pressure regarding DEI programs from conservative activists and as the administration of U.S. President Donald Trump targets diversity, equity and inclusion in the political arena.
Trump has issued executive orders that end the government’s DEI programs and put federal officials overseeing those initiatives on leave. Many companies diversity policies had been in place for years and were strengthened in the wake of the “Black Lives Matter” protests of 2020.
On the same day that Target announced the end of its DEI programs, rival retailer Costco ($COST) announced that its shareholders voted 98% against changing its diversity and inclusion initiatives. TGT stock is flat over the past year (down 0.07%).
Is TGT Stock a Buy?
The stock of Target has a consensus Moderate Buy rating among 30 Wall Street analysts. That rating is based on 15 Buy and 15 Hold recommendations issued in the last 12 months. The average TGT price target of $146.64 implies 6.38% upside from current levels.
