Target spotlights support for Black founders after DEI backlash

Core Insights - Target is emphasizing its partnership with the Russell Innovation Center for Entrepreneurs (RICE) to support Black small business founders, indicating a potential shift in strategy to rebuild relationships with communities that are integral to its brand identity [1][2]. Partnership in Focus - The collaboration with RICE includes funding initiatives for training emerging entrepreneurs in retail strategy and business scaling through the Retail Readiness Academy [2]. - Target's support extends to HBCU programs under the "HBCU, Always" series, aimed at connecting graduates with mentorship opportunities within the company [2]. Leadership Changes and Strategic Shifts - The announcement of the partnership comes after the resignation of CEO Brian Cornell, who oversaw the company's DEI expansion, including the $2 billion Racial Equity Action and Change (REACH) initiative [3]. - In January 2025, Target decided to end many DEI goals, citing a "realignment" of strategy towards "business neutrality" [3]. DEI Rollback and Its Consequences - The rollback of DEI initiatives led to a nationwide boycott organized by civil rights activists, which was particularly impactful during Black History Month [4][5]. - The boycott resulted in significant declines in store traffic, with concerns raised by Black business owners about the potential negative impact on their sales [5]. Financial Performance and Market Challenges - Target's sales have declined in 2025, with stock prices dropping 61% from their peak in 2021 [6]. - The company announced its first major layoffs in a decade, planning to cut 1,800 corporate jobs, attributing the decline to both consumer boycotts and competition from Amazon and Walmart [6]. Broader Corporate Trends - Target's situation reflects a wider trend in corporate America, where many companies are scaling back or rebranding their DEI programs amid changing political and cultural climates [7]. - By mid-2025, only a small number of Fortune 500 companies continued to publish detailed diversity reports, with many shifting to broader terms like "inclusion" or "corporate responsibility" [7].