Topline
Target’s online traffic dropped during The People’s Union USA Economic Blackout on Feb. 28, according to data from website analytics platform Similarweb. And while the boycott was not explicitly targeting brands that rolled back diversity, equity and inclusion policies, Costco’s uptick in online traffic on the same day, brings the conversation back to the forefront.
Key Facts
On blackout day, Target website visitors dropped 9% compared to Friday, Feb. 14, from 5.2 million to 4.7 million.
Target app user traffic, representing the most loyal Target customers, was off even more, down 14%, from 4.2 million to 3.5 million.
By comparison, Costco experienced a 22% rise in Feb. 28 web traffic, from 2.4 million Feb. 14 to 2.9 million and Costco app user visits rose 3%, from 1.3 million to 1.34 million.
On blackout day, the nation’s number one retailer, Walmart, experienced a 5% slump in web traffic, down from 11.7 million on Feb. 14 to 11.2 million and number two Amazon dropped by 2%, from 67.1 million to 65.9 million.
However, Amazon app traffic rose 1% to 51.4 million visitors while Walmart’s dropped 2% to 13.6 million.
Background
Ever since Target announced at the end of January that it had concluded its three-year diversity, equity and inclusion goals, calls for boycotts against Target have been growing, most recently with Black faith and civil rights leaders advocating for a 40-day “Target Fast” over Lent starting this Ash Wednesday. About the same time as Target was dialing back DEI, Costco affirmed its strong DEI commitment after striking down a proxy vote to evaluate its current policy’s risks in light of rising anti-DEI political and legal pressure. While website traffic can rise and fall sharply on any given day for any number of reasons, it would appear that Target is beginning to experience pullback from its most loyal app-user customer base.
What We Don’t Know
Target reports full-year 2024 earnings tomorrow at 9 a.m. ET and its fourth quarter will only include results covering a week or so after the DEI pushback began. So we’ll have to wait for next quarter to see impact from the boycott calls. However, Target gave a sneak peek at holiday results and reported a 2.8% net sales increase over November and December, including a nearly 9% increase in digital sales compared to prior year.
Tangent
Blackrock, the world’s largest investment firm and one of the leading advocates for strong DEI and environmental, social and governance policies, has been “walking back” its ESG/DEI positions, the Wall Street Journal reported. Last Friday, it told employees it was ending “aspirational workforce representation goals” as a result of “significant changes to the U.S. legal and policy environment.”
Crucial Quote
“In recent days, we have witnessed a disturbing retreat from Diversity, Equity, and Inclusion (DEI) initiatives by major corporations—companies that once pledged to stand for justice but have since chosen the path of compromise. These rollbacks represent more than just corporate decisions; they reflect a deeper erosion of the moral and ethical commitments necessary to build a just society. As people of faith, we cannot be silent. We are called to resist systems that perpetuate exclusion and inequity,” states the TargetFast.org website.
BlackRock’s ‘Woke’ Era Is Over (Wall Street Journal, 2/2/2025)
Read the full article here