Target quietly rolls out something huge to lure back customers

Core Insights - Target has faced significant challenges in 2025, including economic pressures, changes in consumer behavior, high labor costs, inflation, and competition, but has also encountered unique obstacles related to its DEI initiatives and Pride products [1][3] Group 1: DEI Policy Changes - In January, Target made controversial cuts to its diversity, equity, and inclusion (DEI) policies, including withdrawing from the Human Rights Campaign survey, which tracks LGBTQ+ corporate practices [2] - The decision led to consumer backlash, resulting in boycott threats, a decline in sales, and reduced foot traffic in stores [3] Group 2: Financial Performance - According to Target's Q10 filing for Q2 2025, net sales decreased by 0.9% year-over-year to $25.2 billion, while comparable sales fell by 1.9%, driven by a 1.3% drop in traffic and a 0.6% decrease in average transaction amounts [3] Group 3: New Initiatives - To regain customer trust, Target has begun testing the sale of THC-infused beverages in select liquor stores in Minnesota, marking a significant move for a retailer of its size [5][6] - Target is the first major retailer to enter the THC beverage market, which has been largely avoided by national chains, indicating a potential shift in industry dynamics [6]