That’s according to a report Friday (Feb. 27) from Reuters, which noted that this push is happening at a time when Target is struggling while rivals Walmart and Costco benefit from cost-conscious consumers.
Target’s profits are down 14% in the last five years, while its move away from diversity, equity and inclusion (DEI) initiatives following Donald Trump’s return to the White House upset many customers and merchants.
Former CEO Brian Cornell has acknowledged that Target’s DEI rollback led to a boycott that ate into sales, the report added. The company’s market value has fallen by nearly half since 2021 to $52 billion, while Costco’s has topped $430 billion, and Walmart’s is now above $1 trillion.
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With that in mind, the report said, a number of Target investors are lobbying for change. Among them is a group of 27 investors seeking answers to what it views as missteps that have hurt Target’s reputation with customers and hurt sales.
“We are concerned that a series of recent public-facing decisions and communications by the company may have introduced reputational, operational, and financial risks at a moment when Target is already navigating a challenging competitive and macroeconomic environment,” the investors wrote in a letter seen by Reuters.
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The letter does not mention specific remedies, the report added. Reuters cited data from LSEG projecting the company will show a 2.65% drop in same-store sales for last year.
“Target’s top priority is getting back to growth, and our strategy to do so is rooted in four strategic priorities: leading with merchandising authority, providing a consistently elevated shopping experience, leveraging technology and strengthening team and community,” the company told Reuters in a statement, adding it routinely speaks with investors.
New CEO Michael Fiddelke is expected to discuss his priorities for the year when Target reports earnings this week. In a message from the CEO posted on Target’s website last month said those priorities include merchandising that combines design, style and value and a guest experience that makes in-store and digital shopping easier and more welcoming.
“Our guests want great design, real value and experiences that delight,” Fiddelke said in the message. “That’s where Target has always been at its best, and it’s what grounds the important work in front of us now.”
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