NEW YORK–Target Corporation’s recent move to roll back its Diversity, Equity, and Inclusion (DEI) initiatives has not only sparked backlash from consumers and stakeholders but also triggered a sharp decline in the company’s value—ultimately costing CEO Brian Cornell his job, according to a detailed report by Forbes.
Once considered a retail leader in progressive corporate values, Target’s decision earlier this year to scale back DEI programs came just days after a controversial executive order by former U.S. President Donald Trump targeting such initiatives. On January 24, Target quietly announced to employees that it was “evolving” its DEI strategy. But as Forbes notes, consumers saw it differently: not as evolution, but as abandonment.
Target’s prior DEI commitment had paid off. According to Forbes, in the wake of George Floyd’s murder—just miles from the company’s headquarters in Minnesota—CEO Brian Cornell had pledged to invest $2 billion in Black-owned businesses and significantly diversify the company’s workforce. The result? A surge in sales and market trust. In 2021 alone, Target’s comparable sales rose by 12.7%, and its market value peaked at $129 billion.
But in stark contrast, Forbes reports that the rollback of DEI initiatives earlier this year was followed by consumer boycotts, employee discontent, and a 24% plunge in stock price. By mid-2025, Target’s valuation had dropped to $45 billion—down a staggering 65% from its peak.
Forbes notes that even family members of Target’s founders publicly criticized the move, and a class-action lawsuit was filed by investors alleging the company failed to disclose the risks associated with its DEI reversal.
Analyst Doug Melville writes in Forbes that “Target’s growth was accelerated by investing in diversity, and it’s been hurt by abandoning its approach.” He argues that DEI is not just a moral imperative but a sound business strategy—a view supported by Target’s own history.
Now, with Cornell stepping down and shareholder trust shaken, Forbes concludes that Target faces a steeper challenge: not only restoring sales but rebuilding public confidence in its values.
In a global market where diversity is both a strength and a growth engine, Target’s experience may serve as a cautionary tale for corporations tempted to walk away from DEI.
