In 2025, major U.S. retailers Walmart and Target are facing significant consumer boycotts following decisions to scale back their Diversity, Equity, and Inclusion (DEI) initiatives. These actions have sparked widespread criticism and organized protests, leading to notable impacts on sales and public perception.
Target's recent quarterly sales dropped 3.8%, underperforming expectations and continuing a multi-year trend of sluggish performance. Contributing factors include reduced consumer spending on discretionary items, declining consumer confidence, and backlash due to the retailer’s decision to end its diversity and inclusion programs and scale back LGBTQ-themed products. This sparked a boycott supported by activists and circulated widely on social media, which CEO Brian Cornell acknowledged as impacting results, though its exact financial toll remains unclear.
To combat financial headwinds such as rising tariffs and economic uncertainty, Target intends to minimize price increases through strategies like supplier negotiations, product diversification, and shifting manufacturing locations. The company is also seeking to revitalize its image by enhancing its product lineup and operational practices.
Despite these efforts, Target continues to lag behind competitors like Walmart and TJX, with declining customer satisfaction stemming from inventory issues and uninspired merchandise. Target aims to recapture its appeal—dubbed the “Tarzhay” success—by focusing on trend-driven, affordable products while reinforcing its commitment to inclusive retail experiences.
Walmart has also come under scrutiny for ending its five-year DEI partnership and ceasing to consider supplier diversity. The People's Union USA, a grassroots group promoting corporate accountability and economic justice, argues Walmart should absorb inflationary costs rather than passing them to consumers.
The People's Union USA has urged shoppers to redirect their dollars to local businesses instead. With over 330 Walmart stores in Florida alone and 10 Sam’s Club locations in Wisconsin, the boycott’s reach is massive. Schwarz has emphasized that this isn’t about tanking the economy but about flexing consumer power to hold corporations accountable.
The Walmart boycott is part of a broader wave of consumer activism in 2025. The People’s Union USA has already targeted Amazon and General Mills, with plans to boycott Target and McDonald’s in June. What makes this movement stand out is its grassroots energy. Schwarz, with over 425,000 Instagram followers, has turned social media into a megaphone for change.
Data from firms like Placer.ai shows mixed results. While foot traffic at Walmart and other retailers dipped during the February 28 economic blackout, there’s no clear evidence of a sustained financial hit yet. Still, the boycott’s symbolic power is undeniable. Shoppers are fed up with rising costs and corporate decisions that seem out of touch with everyday struggles.
The consumer boycotts against Walmart and Target in 2025 reflect a growing demand for corporate accountability and social responsibility. As these retailers navigate the challenges posed by public backlash and shifting consumer expectations, their responses will likely influence their long-term reputations and financial performance.