TGT Shares Plunge 4.20% as DEI Rollback Backlash Prolonged Boycotts Weigh on Retailer

TARGET (TGT) shares plunged 4.20% intraday on October 10, 2025, marking the lowest level since August 2019. The stock has lost 5.37% over two trading days, reflecting sustained investor unease amid a complex mix of social, operational, and strategic challenges.

The ongoing backlash against Target’s 2024 decision to scale back diversity, equity, and inclusion (DEI) initiatives has severely damaged its public image and financial performance. A prolonged #TargetFast boycott, supported by civil rights leaders and unions, has persisted for over 200 days, leading to consecutive quarterly sales declines and a 3.3% year-over-year drop in foot traffic. Legal risks have also emerged, including a class-action lawsuit alleging executives concealed the financial risks of the DEI rollback, which could result in costly settlements.

Leadership transitions and takeover speculation have further destabilized the stock. The announced succession plan, with COO Michael Fiddelke set to replace Brian Cornell as CEO in early 2026, has fueled rumors of a potential private-equity acquisition. While a 3% intraday rally on October 1 followed unconfirmed takeover speculation, shares remain near multi-year lows, underscoring investor skepticism about management’s ability to address underlying issues.

Competitive pressures from rivals like Costco, which reported rising foot traffic in 2024, have compounded Target’s struggles. Operational challenges, including restructured supply chains to avoid U.S. tariffs, have alienated customers and critics. Meanwhile, a June 2024 "economic blackout" boycott organized by The People’s Union USA highlighted broader discontent over pricing and labor practices, further eroding brand trust.

Target’s financial outlook remains uncertain. With annual sales projected to decline to $106.6 billion in 2024 and operating income down 19.4% year-over-year, the company faces mounting pressure to realign its strategy. Analysts emphasize that restoring stakeholder confidence will require concrete actions to address DEI commitments, stabilize sales, and navigate macroeconomic headwinds. Until these challenges are resolved, TGT’s stock is likely to remain volatile.