• Florida's pension board has sued Target over its DEI practices.
• The complaint argues that Target misled investors about the impact of backlash to its Pride collection.
• The suit blames Target's stock price troubles on DEI, rather than other business challenges.

The state of Florida has joined the growing legal challenges against Target.

The State Board of Administration of Florida, an agency that oversees public pension funds that own Target stock, has sued the retailer, arguing it misled investors about the impact of backlash to its Pride campaign and DEI initiatives.

Florida argues Target's handling of its 2023 LGBTQ Pride collection was uniquely harmful to shareholders.

"The Campaign provoked immense consumer backlash and boycotts that caused Target's sales to fall for the first time in six years and wiped out over $25 billion in Target's market capitalization—leading Target's stock to experience its longest losing streak in 23 years," the complaint says.

Target did not immediately respond to Business Insider's request for comment.

The proposed class action lawsuit is related to an earlier shareholder lawsuit filed in August 2023 against Target, as well as one filed last month by the City of Riviera Beach police pension fund. All three lawsuits were filed in federal court in Ft. Meyers.

Target executives did say during an August 2023 earnings call that traffic and top-line trends were affected by backlash to its Pride collection, but added that "it's not possible to reliably quantify the separate impact."

The company has also recently struggled to compete for inflation-weary consumers against larger rivals like Walmart and Amazon, among other business challenges.

Target may be facing the reverse backlash as well, as numerous employees and customers have told Business Insider they no longer support Target after they feel it has caved to anti-DEI pressure.

Last month, Target said it was retiring several DEI initiatives to remain "in step with the evolving external landscape."

Many other retailers have similarly been retooling their approach to DEI following President Donald Trump's executive order announcing the termination of these practices in the federal government.

The January 22 order directs all government departments and agencies to "take strong action to end private sector DEI discrimination."

• As America's grocery king, Walmart sources a high share of its products from within the US.
• Target, by contrast, relies more on merchandise that is often imported, such as apparel and housewares.
• The difference puts more of Target's business at risk from Trump's promised tariffs.

For all their similarities, Walmart and Target have key distinctions that could spell big differences in how each could be affected by rising import costs as President Donald Trump introduces new tariffs.

In a recent research note, Truist Securities analyst Scot Ciccarelli said Walmart is better positioned to deal with new tariffs than Target, especially since inflation-weary shoppers are likely to be more sensitive to price hikes.

While some of the new tariff costs could be passed on to customers via higher prices, Ciccarelli said retailers are more likely to put pressure on their vendors to absorb some of the pressure.

As the largest retailer in the world, Walmart has shown itself to be particularly effective at negotiating favorable deals from its suppliers.

And if retailers do wind up raising prices, that could tilt in Walmart's favor.

"Higher costs via tariffs would likely further accelerate the consumer search for 'deep value,' and further increase the wallet share for top value providers, including Walmart," Ciccarelli said.

The differences go beyond the price tags. Where a product comes from is increasingly important in the new trade landscape.

"Target is actually much more exposed than Walmart because Walmart is grocery-heavy and groceries are predominantly domestic," Jason Miller, supply chain professor at Michigan State University, told Business Insider.

As America's grocery king, Walmart US makes nearly 60% of its revenue from the grocery category and only about a quarter of sales from general merchandise.

In addition, grocery as a share of sales has been increasing in recent years as the general merchandise share has declined, according to Walmart's annual report.

Target, by contrast, relies much more heavily on merchandise that is often imported, such as apparel, housewares, and beauty. Food and beverage sales accounted for less than a quarter of Target's sales last year.

TD Cowen retail analyst Oliver Chen told BI that Target's apparel segment presents another potential complication, as fashion is more sensitive to seasonality. That could make it more difficult to reschedule orders or reshuffle suppliers and still be on-time and in-style.

"When you miss apparel timeline, you don't get it back, and Target has more apparel exposure," he said.

Beyond its grocery-to-merchandise ratio, Walmart has another key advantage over Target: scale.

"Walmart is much bigger," Kantar analyst Gina Logan told BI. "And I'm not just talking about sales.

"They have a much more advanced supply chain," she added. "They have a wider range of suppliers, they have more ability to pivot and predict demand, and can use their automation and forecasting in order to react to this in a much faster, more predictive way than Target."

This is not the first time the Spark has found a competitive advantage over the Bullseye in the grocery aisle.

When US shoppers began to cut spending back in 2023, prioritizing essentials like groceries in their weekly budgets, sales at Walmart chugged along while Target struggled.

Target has since found success by taking a much more Walmart-like stance with price cuts and bargain brands, and its share of grocery sales has increased by 1-2 percentage points per year over the last three years.

Logan says tariffs could push Target harder into the grocery game, especially with its portfolio of private-label food brands.

Walmart reports its earnings next week and declined to comment. Target, which reports on March 4, did not immediately respond to a request for comment.

Neither company mentioned tariffs during their respective third-quarter earnings calls, both of which took place after the US presidential election.

However, Walmart CFO John David Rainey told CNBC later in November that Trump's sweeping tariff plan could lead the retailer to raise prices on a portion of its products.

"We never want to raise prices," he told CNBC. "Our model is everyday low prices. But there probably will be cases where prices will go up for consumers."

Before that, the last time the companies' executives discussed tariffs on earnings calls was in 2019, according to data from AlphaSense.

At the time, Walmart said it would not raise prices on food impacted by tariffs and would instead look to offset the cost elsewhere.

"As a guest-focused retailer," Target CEO Brian Cornell said in May 2019, "we're concerned about tariffs because they lead to higher prices on everyday products for American families."

He later said in a November 2019 call that then-President Trump's tariffs were amounting to $50 million to $60 million in added costs per quarter, adding that "obviously we're all facing the same tariff issues together."

But as Target's and Walmart's financials show, not everyone will be impacted by tariffs to the same degree.

• The daughters of one of Target's cofounders say they're "alarmed" at the company's DEI rollback.
• In letters to two newspapers, they said their father believed in clear principles.
• Target is among the companies scaling back diversity efforts amid political pressures against DEI.

The daughters of one of Target's cofounders say they're "shocked and dismayed" at the company's recent DEI rollback.

In letters to the editor published in the Financial Times and the Los Angeles Times, Anne and Lucy Dayton said their father, Bruce Dayton, believed in clear principles of happy customers and strong communities.

"We are alarmed how quickly the business community has given in to the current administration's retaliatory threats," they wrote. "It is not 'illegal' for a company to create a business model based on what it believes to be important ethical and business standards."

Bruce Dayton, who died in 2015 at 97, was one of five brothers who grew their father's Minneapolis department store into a national brand.

Neither the sisters nor Target immediately responded to requests for comment from Business Insider.

Target is one of several companies scaling back diversity efforts amid wider political scrutiny of DEI programs following Donald Trump's reelection.

CEO Brian Cornell said in 2023 that DEI was "the right thing for society, and it's the great thing for our brand."

Days later, the company began pulling LGBTQ+ pride merchandise after conservative activists mounted a campaign against the celebration.

In late January, a police pension fund in Florida filed a proposed class-action shareholder lawsuit against Target, alleging the company made "false and misleading" statements about its DEI strategy's effect on its financial results.

While some companies have announced their moves, others have discreetly removed references to DEI from their communications.

Some companies, including Deloitte and Google, have said that as federal contractors, they're required to follow Trump's recent executive order to end DEI programs at federal agencies.

"By cowering," the Dayton sisters said, "Target and others are undermining the very principles that have made their companies a success."

• Target said Friday that it is ending multiple diversity-related programs.
• A memo said the moves help the company remain "in step with the evolving external landscape."
• The reversal follows moves by several major retailers, including Walmart and Tractor Supply Co.

Target is the latest major retailer to reverse course on its diversity, equity, and inclusion initiatives.

In a Friday memo to staff, Target's chief community impact and equity officer, Kiera Fernandez, said the company is ending multiple diversity-related programs, including the planned conclusion of a racial equity initiative and the end of all external diversity surveys.

Fernandez said the strategy was based on "many years of data, insights, listening and learning" to help the company remain "in step with the evolving external landscape."

In addition, the memo said Target is renaming its "Supplier Diversity" team as "Supplier Engagement" and will evaluate its corporate partnerships.

The reversal follows moves by several major retailers in recent months, including Walmart and Tractor Supply Co., as well as this week's sweeping new rules from President Donald Trump ordering the end of DEI programs at federal agencies.

Not all companies are bowing to the mounting anti-DEI pressure. On Thursday, Costco shareholders overwhelmingly rejected a proposal from a conservative think tank to evaluate the potential legal and financial risks of the wholesale club's DEI-related policies after the company recommended investors vote against it.

In finance, JPMorgan CEO Jamie Dimon affirmed his company's commitment to DEI and dismissed a conservative shareholder group's criticisms. "Bring them on," he said.

Target has faced pressure from conservative groups over the years in response to issues ranging from what shelves toys are sold on to the company's offering of LGBTQ+ merchandise during Pride month.

CEO Brian Cornell previously defended DEI as "good business decisions, and it's the right thing for society, and it's the great thing for our brand."

Read the memo sent to Target employees:

From: Kiera Fernandez
Subject line: Belonging at the Bullseye

Hi team,

As we close the fiscal year and welcome 2025, I want to share how my team and I have been planning for the year ahead and beyond, ensuring even closer connections to our enterprise roadmap for growth.

For more than 20 years, Target has fueled our business by building teams with diverse perspectives and experiences, creating inclusive work and guest environments that welcome all, and developing strategies that represent the U.S. consumers we serve.

We've also deepened our understanding of how building a sense of belonging for every member of our team, guests and communities can help drive our business and strengthen our culture. So, as
we kick off the new year, we will further our commitment to growth and opportunity for all through our strategy, Belonging at the Bullseye.

Many years of data, insights, listening and learning have been shaping this next chapter in our strategy. And as a retailer that serves millions of consumers every day, we understand the importance of staying in step with the evolving external landscape, now and in the future — all in service of driving Target's growth and winning together.

You can find more here, including details on the actions we're taking, with the goal of driving growth. In the coming weeks and months, you'll see me and my team continue to guide and partner across the enterprise to bring this strategy to life.

In my 23 years as a team member, there are so many things I have loved about Target and our culture. At the top of the list is our conviction to always move forward — listening, learning, growing and setting standards of excellence. I am excited about this next chapter, and confident that our business and culture will continue to be strengthened through the power of belonging.

Onward,
Kiera

If you are a Target worker who wants to share your perspective, please contact Dominick via email or text/call/Signal at 646.768.4750. Responses will be kept confidential, and Business Insider strongly recommends using a personal email and a non-work device when reaching out

• Walmart, Target, Trader Joe's, and Costco plan to open new stores in 2025.
• New store openings are planned in over 10 states, including California, Texas, and Michigan.
• Walmart told Business Insider it plans to open six Supercenters and three Neighborhood Markets.

Some of America's favorite grocery store chains could open up stores near you in 2025.

Walmart, Target, Trader Joe's, and Costco have all announced several new stores they expect to open in the new year across more than 10 states.

Here's the full list.

Walmart

Walmart has more than 4,600 locations in the US and plans to open nine new stores in 2025 and one Sam's Club, which Walmart also owns. Walmart told Business Insider it plans to open in the following locations in 2025:

Walmart Supercenters

• Mountain View, California
• Eastvale, California
• Cypress, Texas
• Frisco, Texas
• Melissa, Texas
• Celina, Texas

Walmart Neighborhood Markets

• Tuscaloosa, Alabama
• Milton, Florida
• Pace, Florida

Sam's Club

• Tempe, Arizona

Target

With 1,963 locations in the US, Target says most American households are located within 10 miles from at least one of its stores. Still, the grocery giant plans to open more than 30 new locations. A Target spokesperson said the company could not confirm when those stores were expected to open, but at least three are expected to open in 2025, according to the hiring page on the company's website. Those three are located in:

• South Lake Tahoe, California
• Surprise, Arizona
• Denton, Texas

Trader Joe's

Trader Joe's, which has hundreds of locations around the US, said it expects dozens more to open in 2025. The company's website lists 12 new locations expected to open soon, though it does not specify an exact date. The locations include:

• Northridge, California
• Sherman Oaks, California
• Tarzana, California
• Seattle, Washington
• Bellingham, Washington
• Murfreesboro, Tennessee
• Berwyn, Pennslyvania
• Staten Island, New York
• Hoover, Alabama
• Two locations in Washington, DC
• Rockville, Maryland

Costco

As of November 2024, Costco had 896 locations worldwide, with 616 in the US. The wholesale warehouse giant has said it plans to open about 30 new locations in 2025, with six set to open in March. The locations set to open in March are:

• Brentwood, California
• Genesee County, Michigan
• Highland, California
• Prosper, Texas
• Sharon, Massachusetts
• Weatherford, Texas

• I visited my local Target in New Jersey to shop for gifts in its "Bullseye's Playground" section.
• All of the items were priced at $1, $3, or $5.
• From mugs and candles to self-care items, I loved the selection.

Target is one of the biggest retailers in the US, with more than 1,900 store locations, and while I've been a frequent customer for years, I've only recently begun to pay attention to its dollar section.

Known as "Bullseye's Playground" — in honor of the store's bull terrier mascot, Bullseye — the front-of-store section is stocked year-round with items spanning home decor, organization options, and small toys, all retailing for $1, $3, or $5.

I decided to put "Bullseye's Playground" to the test to see what last-minute gifts, stocking stuffers, and decorations I could find at my local Target in Jersey City, New Jersey.

While the items from this section are visible on Target.com, they appear to only be available in store and are "not eligible for same-day delivery or pickup services," according to the retailer's website, so in-person shopping for last-minute holiday gifts is advisable.

Most store locations are offering extended hours (7 a.m. to midnight) through December 23 and from 7 a.m. to 8 p.m. on Christmas Eve, but if you're looking for items outside Bullseye's Playground, the retailer will be offering same-day Christmas Eve delivery for orders placed before 3 p.m. on the Target app or online.

Whether you're in need of some last-minute gift inspiration or just curious about Target's selection, here were some of my favorite options.

Bullseye's Playground is a front-of-store section with affordable options.

At my local Target, this section is located at the entrance near home decor and fashion items, rather than near the groceries and pharmacy.

I visited on a weekday night, so it wasn't crowded at all.

There were so many different items packed into the displays, so for the sake of time, I decided to focus on highlighting some of my favorite choices.

The first item to catch my eye was a satin pillowcase and eye-mask set.

For anyone who likes to feel a little luxurious before bed, I found this matching satin pillow case and eye-mask set for $5.

In addition to gray, other colors available in-store and online include beige, pink, and sage.

I loved this headband and wristband set.

If the person you're shopping for is into skincare, a headband and wristband set like this is a great option.

The headband keeps their hair out of their face, while the wristbands prevent the water from dripping down their arms.

These sets retailed for $3 and were available in cream, baby pink, and black.

Also in the beauty category was this LED mirror and makeup brush set.

The set appeared to fold into an easy-to-carry case and was available in this mint-green color and a cream color for $5.

To go with the mirror and brushes, there was a fluffy makeup bag, too.

I didn't love how matted the fluffy fabric appeared to be on this makeup bag, but for $5, it seemed fairly priced.

I was shocked to see a bath tray available.

Though this obviously won't fit in a stocking, I was shocked to find a bath tray for just $5.

Its label said it fits most standard tubs and measured at 29.8 inches by 4.7 inches.

There were plenty of scrunchies.

As someone who's always in need of a hair tie, I was pleased to find a large bin of scrunchies each priced at $1.

I thought the decorative candles were cute.

I saw two Christmas tree-shaped candles at my local Target. The first of which was this 3 oz "Cypress & Champagne" scented option for $3, while the other was called "Festive Fir."

Since the candles were located in Bullseye's Playground and not the nearby candle section, I thought they may have a weaker scent, but I was pleasantly surprised.

Though it's hard to say how such a small candle would impact an entire room, the direct scent was strong and true to their names.

One of my favorite finds on my trip was this pair of iridescent cocktail glasses.

Whether you're into home decor or a fan of hosting, these iridescent cocktail glasses seemed like the perfect trend-forward kitchen gift.

The set retailed for just $5, and I'm already regretting not grabbing them as an early gift for myself.

I liked that right next to the cocktail glasses, there was a bar tool set.

The bar tool set retailed for $3 and included a bottle opener and a jigger with a handle.

I liked that Target seemed to take some of the guess-work out of holiday shopping by placing similar items near each other to make for an easy collection of coordinated gifts.

All that was missing was the alcohol of your choice.

Also nearby were these holiday-themed rolling pins.

These peppermint and winter-foliage inspired rolling pins retailed for $5 and seemed like cute options to spice up any holiday-themed kitchen without breaking the bank.

I also found a selection of multicolored mugs.

While I wasn't a huge fan of the colors and design choices available at my local store, I do think they're cute options for $5.

In the past, I've also purchased holiday-themed mugs like these.

I originally found these ceramic gingerbread and snowman mugs during a Target shopping trip in early November near my hometown in Maryland.

Both hold up to 13 oz and retailed for $3, and while I didn't see them during my most recent Target trip, both items are still present on Target's website, suggesting they may still be available at other locations around the country.

Any of the mugs would pair perfectly with a peppermint hot drink bomb.

A small display of these hot drink bombs were on one of the shelves above the mugs; however, the price of them was hard to locate.

After doing more research when I got home, I realized these treats don't appear to be Bullseye's Playground exclusives, as they retail for $4, but I still think they're an affordable stocking stuffer option to consider.

I love these holiday-themed measuring cups and spoons from another trip to Bullseye's Playground.

In addition to the mugs, I also found these ceramic snowman measuring cups and measuring spoons during my November Target trip in Maryland.

Both retailed for $5, and though my local Target didn't have them during my most recent December trip, both items are still present on Target's website, suggesting they may still be available at other locations around the country.

And this ceramic plate, too.

On another shopping trip in November — this time back in Jersey City — I found a $5 ceramic tray for Santa's Christmas Eve snacks (yes, I shop here a lot).

Though I didn't see it again on my most recent trip, the tray is still listed on Target's website under Bullseye's Playground.

I was surprised to see so many drink-related accessories.

Sure, Stanley cups have been popular this year, but I wasn't expecting to see so many drink-related accessories.

This tumbler accessory set, for example, came in both a pale-blue and a mint-green color and included a straw cover, handle, and zipper pouch.

It retailed for $5.

Straw toppers and covers were popular, too.

There was a large selection of straw toppers and covers available at my local Target, including this daisy set, a cloud and rainbow option, a doughnut and ice cream cone, and a stereo and music note, among others.

Each set sold for $3.

As for home decor, I saw plenty of light-up Christmas tree pillows.

The pillow was small, soft, and retailed for $5.

One thing I noticed, though, was that it requires two AAA batteries, which would have to be purchased separately in order to enjoy its light-up capabilities at home.

According to Target's website, other pillows that may still be available in Bullseye's Playground include a reindeer, a gingerbread man, a gingerbread woman, a gingerbread house, a peppermint, and a star.

There were also some small toys like this finger soccer game …

The game includes the playing field, two goals, one ball, and two pairs of elf shoes to play. It retailed for $5.

And this desktop soccer game.

This toy resembled a miniature foosball table and retailed for $5.

Overall, I was impressed with the selection and even picked up a few items for a friend.

I ended my shopping trip pleased with Target's selection, and thanks to all the self-care products, I was finally able to decide what to gift my best friend: her own curated bag of self-care items.

In addition to other goodies from around the store, I chose to add the pillow case and eye-mask set, the headband and wristband set, and the Christmas tree candle from Bullseye's Playground.

Now all I'm left to do is wonder: Is it too soon to go back?

Robyn gets a kick out of being able to say she's worked at both the "good" and the "bad" Dollar Trees in her West Texas town. The stores may be only a few miles from each other geographically, but qualitywise, there's an enormous gulf between them. Shocked customers who have been to both locations remark on the stark differences "all the time," she said. The good store is clean — the floors are swept, aisles open, merchandise in its place. At the bad one, merchandise is scattered all over the place, and unpacked boxes fill the aisles. There's supposed to be a clear, wide pathway from the break room to an exit in case of an emergency, like a fire or a shooting. Instead, employees at the bad store have to turn sideways and try to shuffle through an 8-inch-wide gap between boxes piled high in the hallways.

The factors that account for the difference sound quite small. The good store has dedicated recovery staff, whose job it is to put stuff where it goes. The bad one doesn't. The good store's manager is better at pushing for more work hours for employees, which means there are more people and time for stocking and tidying up on top of cashiering. The manager at the bad store just kind of lets anything fly. Still, Robyn, which is a pseudonym, says a lot of the blame is on corporate. She was an assistant manager in the past, and she's heard what goes on in the weekly calls. Rather than try to revive struggling stores, she said, they're left out to dry.

"They look at their trend of sales, and if a store is underperforming, then instead of maybe investing a little bit more hours there to try to pick it back up, they're like, 'Oh, well, it's not worth investing in this store' because it is not making us whatever amount of money they think it should be making. It makes the problem worse," she said. Dollar Tree did not respond to a request for comment for this story.

Most people have probably had experience shopping in their own version of Robyn's "bad" store. They've walked into a local dollar store or pharmacy or department store and wondered whether there's been an explosion. Aisles are filled with unopened boxes, stacks of bins, and full dollies. Merchandise is strewn about. To get to the item on the shelf you actually want, you have to climb over a pile of crates. (If you have not had this experience, congratulations, and also, here are some TikTok videos to get at what I'm describing.) It's representative of the broader decline of the in-store retail experience. Stores are slashing costs, cutting corners at every turn, and generally ignoring the consequences.

"When you cut costs, there's a very immediate and very visible impact to the bottom line. It's something that retailers do, and they're very happy to do, and investors are very comfortable with them doing it," Neil Saunders, a managing director at the retail consultancy GlobalData, said. Yes, they'll lose customers in the process, sales will fall, and loyalty will dissipate. But that's all subtle and harder to trace. "They happen more slowly and steadily over a period of time, and they build up into a bigger problem," Saunders added.

What that looks like on the ground is stores filled to the brim as boxes pile up. At Robyn's Dollar Tree stores, they can't call the distribution center and ask it to stop shipping, either, as everything continues to accumulate if they don't have time to put it away. "The truck is going to show up whether you have room for it or not," she said.

The boxes-everywhere scenario used to be largely a dollar- or discount-store problem, but now the perilous piles have spread to other types of retailers. In other words, it's not just Dollar General anymore but also Target and Duane Reade. Much of the explanation is staffing, or rather, the lack of it. Many stores simply do not have enough people working to do everything necessary, between helping customers and stocking shelves and cleaning and fulfilling pickup and e-commerce orders. It's often the case that just one or two people are on a shift at a time, and checking customers out at the register takes precedence, meaning everything else falls by the wayside.

Many retail chains had to raise wages to compete for workers over the past several years, thanks to the pandemic-induced labor shortage and as major retailers such as Amazon and Walmart upped their pay. One way some retailers have compensated is by reducing staffing. Maybe they now pay their workers $15 an hour instead of $10, but where three people used to work a certain shift, there are now two.

Adding to the staffing problems is the simple lack of space. To keep their footprints small and their rent, in turn, low, many stores don't have much backroom area for storage. Long gone are the days of loading docks where stuff could sit until it was ready to be put out, said Jason Goldberg, the chief commerce strategy officer at Publicis Groupe, a global marketing firm. "Most stores are designed to have the vast majority of merchandise out on the floor," he said.

Essentially, this is an inventory issue and a labor issue. There's no stockroom for keeping products stowed away and nobody to unpack them when they arrive. Skeleton crews are doing their best to keep up, but they're constantly being squeezed. Shipping schedules are unpredictable. Customers are demanding. And the worse the job becomes — because the pay is low, because it's hard to get shifts — the more people quit, extending the cycle of doom.

That's what's happening at the Walgreens where Stephanie has worked in Florida for more than a decade. When she started, there would be two cashiers, someone in photo, someone else in beauty, and two shift leads. They'd close the store with four or five people. Now when she's on, it's usually just her and another person, and they have to frantically try to get bins unloaded and put up sales tags all while working the register. They'll leave rolling carts around the store during the day to get to as they can, which is usually at the end of the shift. Bins can't be left out overnight. It's not a disaster zone — luckily, they do have some decent storage space, and the manager runs a tight ship — but it's not perfect, either.

"They basically cut a lot of positions, and now they work as minimum a staff as they can, and even with that, they're telling us, 'You're over budget, we've got to cut more hours,'" Stephanie, also a pseudonym, said. She does DoorDash and Instacart on the side, so she also gets to experience the customer end of the equation when she runs to the dollar store to pick up orders, which is much worse, boxes-in-aisles-wise, than her Walgreens. "It's not even their fault. They have one worker on all the time, and they expect that worker to put their merchandise away," she said.

When reached for comment about this story, a Walgreens spokesperson said that the company is "always working to improve our patient and customer experience by making it easier for our team members to do their job."

Good managers are able to do some triage, which is why one store might be pretty picked up while others are a mess. But sometimes, constraints make it so it's impossible to keep up.

"There will be some store managers that have very strong operating disciplines, and they will not allow things to get out of control," Saunders said. "And there will be some store managers that are much more lax."

As easy as it is to point the finger at retailers for dropping the ball on inventories and aisles, they're not operating in a vacuum. They're in a landscape where margins are razor thin, e-commerce is cannibalizing their business, and consumers are hypersensitive to prices. One response for big-name retailers, including Walgreens, CVS, and Target, is to shut down unprofitable locations across the country. US retailers have announced 7,185 store closures this year, according to the research and advisory firm Coresight, up by 58 from 2023. (By comparison, they've announced 5,581 store openings.) Among the stores that are staying open, retailers are super focused on maximizing their profitability, Claire Tassin, a retail and e-commerce analyst at Morning Consult, said. Staffing a store to have a pleasant customer experience isn't "necessarily in their budgets," she said. Moreover, the message many retailers are getting from consumers is that the sacrifice on experience is acceptable, as long as they're keeping their prices low, especially for retailers where value is the main proposition.

"Yes, it's annoying when there's boxes in the aisles and it feels bad and cluttered, but if it's in the name of lowering costs, that is what consumers are signaling to these brands that they want," Tassin said. "If the store's sort of primary purpose is value and convenience, that's what is going to matter most."

To be sure, there are limits. You trip over boxes in a store enough or wait endlessly for someone to unlock deodorant for you, and you'll probably give up, go somewhere else, or start looking online. For people with mobility issues, going to an overcrowded store isn't even an option. Retailers know people are shopping online, too, which is why the ones who are behind on e-commerce are trying to catch up — and, in some cases, why the in-store experience is even worse.

That's part of what's happening with Target, retail analysts told me. Despite the retailer's recent struggles, e-commerce has been a bright spot for it, Goldberg said. But part of the model is to use the space in the back of stores for goods that need to be shipped — space that previously would have been used for merchandise headed to the floor. "They need space to stage orders and pack orders and hand orders off," he said.

The setup also loads up associates' duties, Saunders added. "They pick orders for online delivery. They take them out to cars for curbside pickup. They have to man the desks where collections are made and then returns of online products are made," he said. "There's a lot more tasks that now have to be done day-to-day in the store, and it's distracted and taken time away from some of the basics like merchandising."

A Target spokesperson said the company's staffing model accounts for online fulfillment being part of how it operates its stores.

The dynamic is one of a race to the bottom that's turning into a race for survival. Retailers are stretching on pricing and staffing and quality, and eventually, something's got to give. But instead of trying to proactively make the in-store experience better, many continue to bury their heads in the sand.

"Rather than thinking, 'How can we differentiate ourselves to really attract shoppers to come to us?' They started competing head-on against online with price discounts," said Sharmila Chatterjee, a senior lecturer in marketing at the MIT Sloan School of Management. "The less you invest in in-store experience, the more the customers are turned off. So you are sort of pushing them away, to online."

Stuff spilling into aisles used to be a somewhat isolated problem, the sign of a particularly poorly run store. Increasingly, though, it's an everywhere problem. Some stores might be inspired to turn it around — especially after dollar stores have been hit with safety violations over blocked exits, crowded aisles, and clutter — but profit motive could prove a stronger incentive. Anecdotally, many consumers have noticed more piled boxes in more retailers lately, not fewer. And that's not just because it's the holidays.

Crowded walkways are a symptom of a much-bigger affliction hitting retail, which is that the business model isn't really working. Gone are the days when supercheap labor made adequate levels of store staffing easy, though I will note that Robyn makes just over $9 an hour and Stephanie about $15.50. Rents aren't going back to where they were. Consumers still do most of their shopping in person, but e-commerce is becoming more and more appealing, especially when brick and mortar is such a hassle. If it's no longer cheap or convenient to pop by the dollar store or drug store, what's the point? And there's always Walmart, which operationally doesn't seem to have this boxes-everywhere issue.

Cynthia, another pseudonymous Dollar Tree worker, is at a store that opened about a month ago in Virginia. When she started, she thought it was weird that customers kept commenting on how clean and organized the place was. "One of the biggest compliments was that we can walk through the aisles. I was like, what?" she said. It's already starting to turn — there's "no freaking way" she can get everything done in a shift, she said. Stuff's starting to pile up, and her coworkers are quitting because they're frustrated with the heavy workload and the lack of hours.

"Then it's more of that work falls on other people who already are burnt out and aggravated," she said. "It's a nasty little cycle."

Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.

• Le Labo is known for its luxury fragrances, including its famous Santal 33 scent.
• However, perfume fans say there's a dupe on the market: Jungle Santal from the Target brand Fine'ry.
• I tried both products and found they were similar in almost everything except the price.

Sitting at my desk with a cat on my lap, I slowly typed each credit card number into Le Labo's website.

Buying a sample of the brand's Santal 33 fragrance made me feel like I was entering a club I've long been an outsider to. The perfume, which can cost up to $1,095 for a bottle, is favored by celebrities, businesspeople, and other fragrance fans.

I was reminded of the scent — and the fact that I'd never smelled it — while interviewing successful men about their favorite colognes. Many of them mentioned Le Labo.

To feed my growing curiosity, I tried the brand's most popular scent. While I was at it, I figured I'd also experiment with a potential dupe: Jungle Santal by Target's fragrance brand Fine'ry.

Quickly, I realized that Le Labo fans might want to switch to the cheaper alternative.

Santal 33: a fragrant and expensive status symbol

I ordered my Santal 33 sample — which cost $12.79 with shipping and tax — on a Thursday morning, and it was delivered to my doorstep the following day.

Despite its minuscule size, the sample embodied Le Labo's understated aesthetic. The glass tube was wrapped in cardboard, and a yellow sticker displayed its ingredients and origin.

I've heard many fans say that Santal 33 is "refreshing" and "smells expensive." One social-media user said the scent reminded them of a pricey hotel in New York City.

Though I originally expected something light, almost like a spa scent, I altered my expectations after reading the perfume's description on Le Labo's website.

With notes of iris, violet, sandalwood, and leather, maybe it would smell sharp but floral, with a lingering musk.

I didn't expect the perfume to smell like pickle juice — a comparison that social media has shown is common among Santal 33 critics and fans alike.

Cat Chen, the founder of the fragrance brand Skylar, previously told BI that the reason perfumes can smell bad to you and great to others is likely related to your body chemistry — or, more specifically, your skin type and pH balance.

In my experience, the fragrance first smelled deeply earthy with a floral touch. As it settled, the musk kicked in, creating a mixture that reminded me of a spice cabinet and, again, an open jar of pickles.

I found it unpleasant and overpowering. Ultimately, it was not for me.

Once the perfume was on, its odor could not be ignored. So, I put my distaste aside and tested the scent's lasting power.

It was most fragrant in my hair, where I could smell it strongly for the first two hours I wore it. Four hours after application, the scent had nearly vanished from my skin.

I even asked friends and family if they noticed my perfume. They said they only smelled it faintly when we hugged.

The quick fade in scent surprised me. If I had spent $107 on the smallest bottle of Santal 33 or $1,095 on the largest, I'd savor every spray.

Purchasing the sample also did not include a coupon to save a few dollars on a larger bottle — a fairly standard practice in the perfume industry. Representatives for Le Labo did not respond to a request for comment.

Target's version isn't exactly the same — but it's close enough

Fine'ry doesn't claim to make dupes, as it told Fast Company in April. The brand aims to bring luxury scent trends to consumers shopping at a lower price point.

Still, on "PerfumeTok" — the fragrance-obsessed side of TikTok — numerous fragrance fans have said the brand's Jungle Santal perfume, sold at Target as a $29.99 perfume and $14.99 body mist, matched Le Labo's Santal 33.

I ordered the more expensive bottle that Thursday, which arrived by Sunday morning.

I was quickly impressed. The perfume, packaged in a plastic-wrapped box with a modern design, looked more high-end than expected from a big-box chain.

One spray proved that the Jungle Santal perfume isn't an exact dupe for Santal 33 — but they're similar. Both scents feature notes of cardamom and wood and are equally strong and musky.

While Le Labo's perfume quickly reminded me of pickles, Fine'ry's initially smelled more masculine with a stronger spice. Still, when the two fragrances settled on my skin, they were almost indistinguishable.

One thing I preferred about Fine'ry's scent is that the perfume features a note of black oolong tea, which I felt calmed the fragrance.

Most noticeably, they lasted the same amount of time, about four hours, on my skin.

The Fine'ry perfume did seem to fade more dramatically. Whereas Le Labo's perfume slowly drifted away, the more inexpensive fragrance seemed to lose a large chunk of its scent every half hour.

Representatives for Fine'ry did not respond to a request for comment.

Money versus fragrance

What's considered a good perfume will always be a matter of personal preference. While I like sweet gourmand scents, others despise anything in the category.

So, I can't say I enjoyed wearing either fragrance simply because I'm not a fan of musky, spicy scents.

However, based on lasting power, price, and aesthetics, it's hard to see why fans wouldn't swap Le Labo's pricey perfume for the Fine'ry option.

It lasted as long as the more expensive fragrance, was packaged in a pretty and minimalistic bottle, and cost significantly less than the designer option.

• I went to Target and Walmart to see which I preferred for buying Christmas presents for my teens.
• Prices at both felt similar, but Target had sales on items like board games that gave it a leg up.
• My Walmart had a lot of great stuff, but my local Target was better organized with more deals.

This year, I headed to big-box retailers Target and Walmart to do my holiday shopping.

Either seemed like it could be a one-stop shop considering I tend to buy my two teenagers gifts like festive pajamas, board games, toiletry sets, and snacks.

Here's how shopping for my kids at Target and Walmart compared this holiday season.

If your teens love cozy holiday socks, go to Target.

A Christmas Eve tradition in my house is to give my kids new pajamas, cozy socks, and a board game we can all play together after dinner.

At Target, I found the softest, cutest holiday socks for about $3 a pair, and I got a few for each kid.

Walmart had a solid selection of affordable holiday accessories.

My teenage daughter loves to wear festive accessories to holiday parties and church services throughout December, so I toss new ones into her stocking each year.

At Walmart, I found a display of super-affordable holiday accessories, such as light-up tree earrings and candy-cane-printed hair clips.

Most of the accessories were under $5 — and the display looked a bit picked-through — but I still found cute stuff for me and my daughter.

My teens love board games, and Target had great deals going on.

During my shopping trip, Target was running a sale offering up to half off on board games like Disney Villainous and Tetris.

The sale seemed to be so good that lots of spaces on the shelves had been cleared out, and many games were out of stock.

Still, I was able to snag a few board games at low prices to put away as holiday gifts.

Walmart had a great board-game section but no sales.

Walmart's board-game aisle was well-stocked, but there weren't any sales going on when I visited.

Still, I appreciated the broad selection, which included everything from dice and card games to a local version of Monopoly specific to my Florida town.

Target had fewer games in stock, but I expected that given the sale that was happening while I was shopping.

Target seemed to have all the popular water-bottle brands.

Both of my teens have a lot of insulated water bottles, but I know they'll each love getting a new one for Christmas.

At Target, I found lots of popular brands of insulated bottles and tumblers, including Stanley and Owala. I appreciated finding big-name bottles in a variety of colorways — plus, many of them were on sale.

The water-bottle selection at Walmart didn't feel as great.

I definitely didn't experience the same Stanley-shopping zen at Walmart as I did at Target.

I struggled to find trendy big-name brands in Walmart's water-bottle section, but I did see unique offerings, like Cirkul ones with flavor pods.

For the most part, though, I was surprised at how disorganized and messy this section felt at my store. A lot of the bottles and tumblers were tipped over or shoved where they didn't belong.

There were tons of festive pajamas at Target.

We're big on holiday pajamas in my family, so I couldn't wait to see the offerings at both stores.

Target felt like the perfect spot to grab matching holiday pajamas for everyone in my family … even our pets.

My local store had a huge section filled with pajamas at a few different price points. I passed a well-stocked display with $15 sets for the whole family and found some pricier, super-soft Christmas pajamas for women.

Walmart's holiday pajamas looked pretty picked-through.

At my local Walmart, I was able to locate a cardboard display that seemed to once have holiday pajamas in a range of sizes, but it was empty.

I found festive pajamas in different sections of the store for women, men, kids, and babies, but no matching sets for families.

Target had great skincare and makeup gift sets.

My teen daughter and I love to shop at Target for makeup and skincare products, especially since the chain carries nicer lines like Versed and La Roche-Posay.

In its beauty section, I found numerous holiday-themed skincare and makeup sets along with stocking-stuffer-sized minis of face masks, lip glosses, and more.

I picked up a beauty advent calendar and a few different holiday-edition Nyx Cosmetics products for my daughter, and I know she'll love them.

I really appreciated seeing men's skincare sets at Walmart.

I was excited to find an entire endcap of festive toiletry sets for men at Walmart with products from brands like Every Man Jack and Duke Cannon.

It's rare that I find men's skincare or body-care sets during the holidays, so I picked up a deodorant-and-body-wash set for my son.

Both stores had lots of holiday candy for sale.

I love putting festive versions of candies my kids already love, like Reese's and Swedish Fish, in my kids' stockings.

It's always a bit whimsical to see beloved snacks packaged up in special ways for holidays, and both Walmart and Target had plenty of these kinds of items.

I could stop by either store to fill my kids' stockings, whether I want hollow candy-cane shapes filled with Hershey's Kisses or seasonal Pez dispensers,

Throughout my trips, I found Target had more sales.

In general, I found Target's and Walmart's prices to be pretty comparable on things like pajamas, accessories, and beauty sets.

However, Target had an advantage with its seasonal sales on board games, Lego sets, and video games.

The Lego section of my store looked especially picked-through, but that's probably because sets were 20% off. At Walmart, the Lego sets appeared to be full price.

Although Target changes its offers weekly (or sometimes daily), they appear to be coming up more often than Walmart's right now.

Overall, Target felt more festive and organized — plus, it had more sales.

Both stores had excellent offerings, but Target impressed me more.

A lot of people consider Walmart to be the cheaper of the two chains, but I actually found way more sales and deals at Target — many of which made its prices much lower than Walmart's.

Target is also doing a holiday price-match offer that's hard to beat. Shoppers can request a price adjustment if any item they buy there becomes cheaper before Christmas.

Lastly, my local Target felt cleaner, brighter, and better organized than Walmart.

I'll be heading to Target for the remainder of my holiday needs, but I still swear by shopping at Walmart for groceries for the best deals on food.

• Execs at Walmart, Target, and more retailers have given similar descriptions of US consumer health.
• BI combed through earnings-call transcripts to round up the words they used to talk about shoppers.
• Despite the challenges, Americans continue to spend — even if it's at the last minute.

Pressured. Cautious. Stretched.

If those words describe how you're feeling amid holiday spending, you're far from alone.

Money is tight for many Americans these days, and executives at Walmart, Target, Dollar General, Dollar Tree, and more have used similar language to describe the state of US consumer health this holiday season.

"I want to be sensitive to those that have lower income levels and acknowledge that this inflationary cycle has been really detrimental and created a lot of pressure for them and their families," Walmart CEO Doug McMillon said Tuesday at the Morgan Stanley Global Consumer & Retail Conference.

"People at the other end of the continuum," he added, "they may be cherry-picking categories depending on what they're looking for."

In Target's quarterly earnings call in November, CEO Brian Cornell described the toll high prices were taking on American households.

"Consumers tell us their budgets remain stretched and they're shopping carefully as they work to overcome the cumulative impact of multiple years of price inflation," he said.

"They're becoming increasingly resourceful in their shopping behaviors, waiting to buy until the last moment of need, focusing on deals and then stocking up when they find them," Cornell added.

Dollar Tree's interim CEO, Michael Creedon, said low-, middle-, and high-income shoppers were showing signs of budget pressure.

"They started eating more at home and cutting going out. Now they're reducing some parties," he said during the company's quarterly earnings call on Wednesday.

On Thursday, Dollar General's CEO painted a similar picture as the discount store gained share among middle- and higher-income households.

"The consumer is seeking value, trying to make ends meet," he said.

Of course, retailers have been using words like "pressured," "stretched," and "cautious" to talk about their customers for several years now.

Data from AlphaSense indicates the terms are mentioned near the word "consumer" dozens of times in transcripts from major retailers this year.

Despite persistent challenges, shoppers continue to spend strong.

"We see a consumer who is seeking value in sales events and one who is also willing to spend on high-price-point products when they need to or when there is new compelling technology," Best Buy CEO Corie Barry said during a third-quarter earnings call.

Nowhere is that more apparent than this year's holiday sales season, which is off to a roaring start that could help compensate for the five fewer selling days between Thanksgiving and Christmas.

While retailers may have to compete a little harder to win sales this year than before, and investors may have to accept somewhat narrower profits, US shoppers are playing through the pain — even if that means more deal-hunting, last-minute shopping trips or buy-now, pay-later plans.

• Apparel retailers are saying the late start to colder weather has impacted their quarterly results.
• Kohl's, Burlington, and Nordstrom each mentioned in their earnings a pronounced drop in winter clothes sales.
• The trend follows last year's weirdly warm winter, which posed its own challenges for retailers.

With the holidays just around the corner, it looks like the milder fall weather took a toll on retailers.

Apparel retailers mentioned the unseasonably warm temperatures during their recent earnings calls, saying the late start to colder weather has impacted their third-quarter results.

On Tuesday, Kohl's, Burlington, and Nordstrom each said there had been a pronounced drop in sales of boots and coats, while Dick's Sporting Goods said the lost transactions were offset by stronger performance of warmer categories, like golf.

Indeed, preliminary data from NOAA indicates this year's autumn could be the warmest on record, according to a CNN analysis.

That has been tough for companies that sell lots of boots and coats.

"At Burlington, we are particularly sensitive to warmer weather," CEO Michael O'Sullivan said. "In October, our cold weather businesses represent almost a quarter of our sales."

O'Sullivan also said the shift knocked three percentage points from the company's comparable sales for the period, adding that the warmer temperatures discourage some shoppers from coming into the store in the first place.

Nordstrom's chief brand officer, Peter Nordstrom, said the department store chain had several weeks of "suppressed selling of boots, outerwear, and sweaters, and we're trying to claw that back as best we can the remainder of the season."

Kohl's outgoing CEO, Tom Kingsbury, expressed optimism about the upcoming weeks but was blunt about the recent results: "Yeah, it hurt us in the third quarter. When you have such a high penetration of apparel and footwear as we do, it hurts us."

Their comments follow remarks from Target and TJX last week, which also indicated that shoppers were waiting for the mercury to drop before spending big.

Target's chief commercial officer, Rick Gomez, said sales of seasonal apparel jumped by six percentage points in select markets "when we saw the weather break" and TJX CEO Ernie Herrman said he's "extremely happy" with the start of the cold fourth quarter.

The trend follows last year's weirdly warm winter, which was the warmest "meteorological winter" on record, according to NOAA. The period includes December, January, and February.

Higher average temperatures generally lead to more unpredictable weather, which poses its own challenges for retailers.

One retailer in South Dakota told the Federal Reserve that even though the warmer weather led to higher foot traffic, sales of winter gear and equipment fell.

If the recent earnings commentary is any indication, this coming winter could be another preview of how rising global temperatures can affect everyday life.

• Taylor Swift's "The Eras Tour Book" was released exclusively at Target on Black Friday.
• Swift self-published the book, which shows a behind-the-scenes look at her record-breaking tour.
• Shoppers lined up outside Target stores to buy the book and other Taylor Swift merchandise.

Taylor Swift fans lined up to purchase "The Eras Tour Book," a behind-the-scenes look at the singer's blockbuster tour that was released exclusively at Target on Black Friday.

The 256-page book retails for $39.99 and features over 500 photos of rehearsals, costumes, set pieces, and performances from her record-breaking Eras Tour, which became the highest-grossing tour of all time when it surpassed $1 billion in revenue.

Instead of working with a larger publisher, Swift self-published the book through her own imprint, Taylor Swift Publications, which printed 2 million copies, The Wall Street Journal reported.

A representative for Target told Business Insider that as of 10 a.m. ET on Black Friday, "The Eras Tour Book" was already the retailer's No. 1 new release and its highest-selling book of 2024.

In addition to "The Eras Tour Book," Target also stocked exclusive vinyl record and CD versions of "The Tortured Poets Department: The Anthology," Swift's latest 35-track, two-part album. The vinyl retails for $59.99, and the CD costs $17.99.

Taylor Swift fans waited outside Target stores in the early hours of the morning on Black Friday for a chance to purchase the book and other exclusive merchandise. One location even created separate lines for the general public and Swifties who were just there to buy the book and album, a shopper wrote on X.

The Black Friday sales event comes after Target's disappointing third-quarter earnings. Both sales and earnings missed estimates, and the retailer cut its guidance.

The Eras Tour began on March 17, 2023, in Glendale, Arizona, and will conclude in Vancouver on December 8.

November 29, 2024: This story has been modified with updated sales information provided by Target.

• A TikTok influencer was arrested after an incident involving the theft of $500 of goods from Target.
• Police say they identified Marlena Velez, who has 360,000+ TikTok followers, through a video she posted.
• The video showed her at Target, wearing the same outfit as in the security footage, police said.

A TikTok influencer with over 360,000 followers who posts aspirational videos of her life as a stay-at-home mom has been arrested after police accused her of stealing about $500 worth of items from Target.

Authorities said the momfluencer later posted a video of the 'shopping' haul to her followers, which they said helped to identify her.

According to a news release, the Cape Coral Police Department in Florida responded to a report last Wednesday about a theft at a Target store in Cape Coral that occurred on October 30.

Target's loss prevention team said that an unidentified woman entered the store, selected items, and scanned false barcodes with lower prices instead of the items' actual barcodes at a self-checkout register.

Police said the woman stole 16 items, including household goods and clothing, worth $500.32.

The Cape Coral Police Department shared photographs of the woman on social media to help identify her.

According to the press statement, an anonymous tip received in response to the photos provided officers with information on 22-year-old social media influencer Marlena Velez and directed them to her Instagram handle.

It said that officers subsequently found Velez's TikTok account, which included a video showing Velez wearing the same outfit and glasses as the woman in the photos.

In the video, which is no longer available on her TikTok account, police said it showed Velez going to Target, selecting items, and loading them into her car before leaving.

Mercedes Phillips, a Cape Coral Police Department spokeswoman, said in a subsequent video that: "Everything was documented, even the outfit that she wore."

Phillips added, "It shows her getting ready with the outfit, and even her glasses, and all of that matches in her TikTok with the attempt-to-identify photo that we put out."

Velez did not immediately respond to a request for comment from Business Insider.

Lee County Sheriff's Office records show that a woman identified as Marlena Valez, with a different spelling but the same birthdate, was booked last Thursday morning.

Records show that she was released later that day on a cash bond of $150.

• Many companies have pulled back or ended DEI programs amid pressure from conservative activists and a new administration.
• Those that have withdrawn or toned down DEI initiatives include Google, Amazon, Meta, and McDonald's.
• President Trump moved to end DEI initiatives at federal agencies shortly after his return to the White House.

The number of companies ending their diversity, equity, and inclusion programs continues to grow.

Google and consulting giant Accenture are some of the most recent examples, joining companies including Meta and Amazon in announcing the rollback of DEI initiatives.

In January, President Donald Trump signed an executive order to end diversity programs across the federal government and ordered all federal DEI staffers be placed on leave while their departments are disbanded.

The move away from DEI policies is part of an ongoing wave of backlash against diversity programs at American companies.

Tech companies such as Microsoft, Meta, and Zoom cut DEI programs last year, and law firms, including Winston & Strawn, faced lawsuits for affirmative action.

Some DEI initiatives have faced backlash from conservatives and activist groups, including mounting social media campaigns, many led by Robby Starbuck. Starbuck, a prominent conservative activist with a sizable social media following, has argued that these initiatives don't align with the values of companies' largely conservative consumer bases.

That said, 59% of Americans oppose Trump's move to end federal efforts to promote the hiring of women and members of racial minority groups, according to a Reuters-Ipsos poll in January. Some companies, including Costco and JPMorgan, have publicly defended their diversity initiatives.

The Human Rights Campaign slammed companies' DEI rollbacks in an August statement to BI.

"Decisions to cut DEI initiatives send a clear signal to employees that their employers simply don't care about equality in the workplace. Putting politics ahead of workers and consumers only hurts the same folks that these businesses rely on," wrote Eric Bloem, the nonprofit group's vice president of programs and corporate advocacy.

Here are how some companies have cut their DEI programs.

Amazon

Amazon has changed its DEI language on some of its website pages and discontinued some programs.

The company removed all mentions of diversity and inclusion from its 2024 annual report. As recently as January 24, Amazon's DEI page was titled "Diversity, Equity, and Inclusion," according to an archived page viewed by BI. That page is now called "Inclusive Experiences and Technology."

"We update this page from time to time to ensure it reflects updates we've made to various programs and positions," an Amazon spokesperson told BI.

In December, Candi Castleberry, Amazon's vice president of inclusive experiences and technology, said in a memo that the company was shutting down several "outdated" DEI programs to focus on initiatives with "proven outcomes," Bloomberg reported.

Mai-Lan Tomsen Bukovec, the vice president of technology at Amazon Web Services, told employees in late January that the company was "not pulling back on DEI initiatives," adding, "there's no change to the commitment, but we didn't roll it out that well," according to a transcript obtained by BI.

Accenture

Global consulting firm Accenture has updated its diversity and inclusion goals, according to an internal memo sent by CEO Julie Sweet in February and seen by BI.

The company is "sunsetting" its 2017 employee representation goals and career development programs for people of specific demographic groups.

Accenture will also pause submissions to external diversity benchmarking surveys while it evaluates whether to continue participating in those surveys, the memo said.

Sweet said the changes come as a result of the "evolving landscape in the United States, including recent Executive Orders with which we must comply," as well as the company's continual evaluation of internal policies.

Sweet noted in the memo that Accenture had largely achieved its 2017 representation goals. She also wrote that the company would invest more in core career development programs and "put a greater focus on inclusion and a sense of belonging for all."

Google

Google told employees in February that it will no longer have hiring goals tied to representation.

It's also evaluating its DEI programs and initiatives, including "those that raise risk, or that aren't as impactful as we'd hoped," Google's chief people officer, Fiona Cicconi, wrote in a memo to staff.

"We're committed to creating a workplace where all our employees can succeed and have equal opportunities, and over the last year we've been reviewing our programs designed to help us get there," a Google spokesperson told BI.

The spokesperson said Google updated language in its annual 10-K report to reflect the change.

"As a federal contractor, our teams are also evaluating changes required following recent court decisions and executive orders on this topic," the spokesperson added.

Target

Target sent a memo to its employees in January announcing the end of its three-year DEI goals.

Written by Kiera Fernandez, Target's chief community impact and equity officer, the memo characterized the change as a way to remain "in step with the evolving external landscape."

The memo also announced that Target would no longer participate in surveys that monitored diversity within the company, and would end a program to carry more products from minority-owned businesses.

Target will also be changing the name of its "Supplier Diversity" team to "Supplier Engagement."

Meta

Meta announced it was rolling back many of its DEI initiatives in January.

In an internal memo, the company's vice president of human resources, Janelle Gale, said there would no longer be a team focused on DEI, adding that the term had become charged and that it suggested, to some, "preferential treatment of some groups over others."

"The legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing," she wrote. "The Supreme Court of the United States has recently made decisions signaling a shift in how courts will approach DEI."

The changes affect diversity efforts across hiring, choosing suppliers, and training, the memo said.

McDonald's

Fast food giant McDonald's joined the ranks of large American companies rolling back some DEI initiatives.

The company announced in a press release on January 6 that it would stop setting representation goals, pause participating in external surveys related to DEI, and end a requirement for supply chain partners to adhere to DEI targets.

McDonald's diversity team will also get a new name. It'll be called the "Global Inclusion Team" instead, the company said in its January announcement.

Despite these changes, McDonald's says inclusion remains one of its "core values."

Representatives of McDonald's did not respond to a request for comment from BI sent outside regular working hours.

Harley-Davidson

In August, Harley-Davidson said on X that it would drop diversity-based spending goals from suppliers, halt socially motivated employee training, and withdraw from an annual LGBTQ acceptance rating by the Human Rights Campaign, Bloomberg reported.

Harley told Bloomberg that the company was "saddened by the negativity on social media over the last few weeks, designed to divide the Harley-Davidson community," following Starbuck's calls on X for the company to apologize and change its policies.

Bloem, from the Human Rights Campaign, said in the statement to BI that retreating from DEI hurts employees and customers.

"Harley-Davidson's choice to back away from the Corporate Equality Index is an impulsive decision fueled by fringe right-wing actors and MAGA extremists who believe they can bully their way into dismantling initiatives that help everyone thrive in the workplace," Bloem wrote.

John Deere

John Deere has pulled back on its DEI commitments, including no longer participating in cultural awareness events and abolishing the company's pronoun policy, BI reported in July.

While John Deere did not publicly announce the reason for its decision, the shift came following online criticism from Starbuck in a video from X, which garnered over 5 million views in July.

Tractor Supply Company

Tractor Supply significantly scaled back its DEI programs, including eliminating diversity roles and withdrawing from Pride event sponsorship. The company also announced that it would no longer provide data to the Human Rights Campaign, and it would end its carbon emission goals. This came after Starbuck's criticized the company for promoting what he labeled as "woke" policies, NPR reported in June.

Polaris

While Starbuck did not specifically target Polaris, the Harley competitor has reduced its DEI efforts, including removing any mention of the term from its web pages. In a statement to Bloomberg, the company emphasized its intention to abstain from political discussion.

Lowe's

Home improvement retailer Lowe's said that it would scale back its DEI programs in an internal note viewed by Bloomberg.

Per the memo, the company will stop participating in surveys run by the Human Rights Campaign, and it will merge resource groups for minority employees into one umbrella organization, Bloomberg reported on August 27.

Starbuck said on X that he caused Lowe's policy shift. However, a Lowe's spokesperson told Bloomberg that they had already begun making changes prior to Starbuck's involvement.

Lowe's has a consumer base largely consisting of rural baby boomers, according to data from the consumer analytics firm Numerator.. The company was labeled "best place to work for LGBTQ equality" by the Human Rights Campaign in Lowe's 2021 culture, diversity, and inclusion report.

Orlando Gonzales, the senior vice president of programs of research and training at the Human Rights Campaign, told BI in a statement that scaling back from DEI policies would have negative consequences for companies in the long run.

"Companies should not cower to a random guy with zero business experience," Gonzales said, citing Starbuck's removal from the Tennessee GOP ballot in 2022.

Ford

In an internal email shared with Bloomberg by Starbuck, the carmaker said that it would pull out of certain diversity rankings, such as the Human Rights Campaign's Corporate Equality Index.

The company also said that it would reorient its employee resource groups to make them accessible to all staff. Ford also pledged to be less involved in political matters and changed some corporate sponsorships.

Ford faced backlash last month after it saw quality issues and vehicle recalls.

Starbuck wrote in a post on X that Ford's withdrawal from DEI initiatives came just as he was investigating Ford's "woke policies."

Meanwhile, the HRC said that Ford "cowered" to Starbuck and that the company had "decades of commitment to inclusion and top ratings on the HRC Corporate Equality Index."

"The Human Rights Campaign could not be more disappointed to see the company shirking its responsibility to its employees, consumers, and shareholders," said HRC president Kelley Robinson in a statement.

Molson Coors

Beverage company Molson Coors is scrapping many of its DEI policies and initiatives, CNBC reported in September.

In an internal memo obtained by BI, Molson Coors said it would remove quotas for supplier diversity. These quotas, which encourage sourcing supplies from minority or women-owned businesses, can be "complicated and influenced by factors outside" the company's control.

Additionally, the brewer stated that it will shift company training away from DEI-based programs to focus more on key business objectives.

The company said the decision to scale back, which was in the works since March, was made to ensure that executive compensation is solely based on business performance and does not include "aspirational representation goals," according to the memo.

Molson Coors will also no longer participate in the HRC Equality Index or any other third-party company rankings, reported CNBC. The company has previously received a perfect 100-point score for 19 consecutive years.

The memo added that the driving force behind the change was "the understanding that when all our people know they are welcome, they are more engaged, motivated, and committed to our company's collective success."

Survey results published by the HRC in September found that more than 75% of adults from the LGBTQ+ community unfavorably view companies that rolled back DEI initiatives.

The HRC's Gonzales said that the LGBTQ+ community holds over $1.4 trillion in spending power in the US and wants to "work for and support companies who support us."

The companies did not respond to BI's requests for comment.

Walmart

Walmart will end some of its DEI initiatives, including winding down its nonprofit Center for Racial Equity, which Walmart funded with $100 million in 2020 for five years, and discontinuing programs that assist minority-owned suppliers.

The company will also stop using the phrase DEI in company documents, stop sharing the details of its LGBTQ+ corporate policies with the Human Rights Campaign and stop allowing third-party sellers to list items marketed toward the LGBTQ+ community.

"We are willing to change alongside our associates and customers who represent all of America. We've been on a journey and know we aren't perfect," Walmart said in a statement to BI.

In a post on the social media platform X, conservative activist Robby Starbuck claimed credit for Walmart's policy change, calling it "the biggest win yet for our movement to end wokeness in corporate America."

Nissan

Nissan is rolling back some of its diversity initiatives, Starbuck announced on social media in December.

In a statement provided to BI when asked about Starbuck's post, Nissan said, "Whether with employees, customers, business partners, or the communities we serve, we believe that Nissan is a company for everyone. For nearly four decades, our commitment to respect and inclusion has been rooted in our values, shaped an environment where each of our team members can contribute at work, and ultimately contributed to the success of our business."

Starbuck said when he reached out to Nissan about their "woke policies" the company was receptive. He shared a letter that he said was sent to Nissan employees from company exec Jeremie Papin.

The letter said the company would stop participating in third-party surveys with organizations "heavily focused on political activism." Starbuck said that meant the company would not participate in the Corporate Equality Index from the Human Rights Campaign, an LGBTQ advocacy group.

The letter also said the company would align employee training with "core business objectives" that support "personal job performance and career advancement."

Nissan told BI it was already working on its communications with employees due to questions received internally but acknowledged it had also spoken with Starbuck ahead of the announcement.

Goldman Sachs

Goldman Sachs is ditching a policy that required IPO clients to have a minimum of two diverse board members. The change comes after a December court ruling over a similar policy at the Nasdaq stock exchange.

The investment bank first implemented a board diversity initiative in 2020, which mandated that IPO clients must have at least one diverse board member. A year later, Goldman raised the requirement to two members and stipulated that one must be a woman.

Goldman initiated a legal review of its policy after the December court decision, according to a company spokesperson.

"As a result of legal developments related to board diversity requirements, we ended our formal board diversity policy," said Goldman spokesman Tony Fratto. "We continue to believe that successful boards benefit from diverse backgrounds and perspectives, and we will encourage them to take this approach."

Disney

Disney told employees in a memo that it's refocusing its DEI efforts to business goals and company values. The changes will also affect content advisory notices that Disney started adding to movies in 2020, BI previously confirmed.

The memo, which BI has verified, said that DEI will be less important in determining executive compensation and that Disney is ditching Reimagine Tomorrow, a digital hub it launched to focus on underrepresented voices.

Disney also said in the memo that its Business Employee Resource Groups will rebrand as Belonging Employee Resource Groups.

The company is no stranger to political controversy over social issues. CEO Bob Iger has criticized Trump in the past, but taken a more muted approach in the beginning of his second term.

Citigroup

Citigroup's CEO Jane Fraser sent a memo to staff in late February saying that the bank would rename its diversity, equity, and inclusion team to "talent management and engagement."

The bank will also get rid of "aspirational representation goals except as required by local law," the memo said. Job candidates and interview panels don't need to be diverse anymore, either, it continued.

• Target's third-quarter results came up short, with sales growth of 0.3% from last year.
• The company described a shift in consumer spending from "resilient" to "resourceful."
• Its CEO said they're waiting "until the last moment of need, focusing on deals, and then stocking up."

Target has described US households as "resilient" in recent quarters. Now the retailer is rolling out a new descriptor for shoppers this fall: "resourceful."

Looking to stretch their budgets just a little further each month, US consumers are getting more strategic about finding deals and loading up their carts when the opportunity arises, the company said.

"They're becoming increasingly resourceful in their shopping behaviors, waiting to buy until the last moment of need, focusing on deals, and then stocking up when they find them," CEO Brian Cornell said during Target's third-quarter earnings call on Wednesday.

Target's quarterly results came up well short of Wall Street's expectations, with sales growth of 0.3% from last year on a store-comparable-sales decline of 1.9%. Shares of Target were down by more than 20% at 2 p.m. in New York.

Target's chief commercial officer, Rick Gomez, provided details about how this new consumer pattern had played out for the company.

"Our Target Circle Week this quarter was one of our biggest yet," he said. "However, we saw a more pronounced sales dip both the week before and the week after the event, showing just how planful consumers are in seeking out promotions."

Gomez added that these shoppers used promotions to stock up on "everyday essential" categories.

He said unseasonably warm temperatures also meant shoppers delayed their purchases of cold-weather apparel until they actually needed it. When the mercury finally dropped, the category's sales jumped by 6 percentage points.

Target stumbles as Walmart hits its stride

Target's results arrived against the backdrop of Walmart's strong earnings, reported a day earlier. The retail giant beat revenue expectations and offered a positive outlook for the rest of the year.

Walmart shares are up by 3% since Monday's close.

"Target continues to lose customers in categories like household goods to Walmart and other more value-oriented players," Neil Saunders, a GlobalData retail analyst, said in a note. "It remains a kind of top-up destination rather than a place where people come to get meal solutions or do a larger shop. This is a lost opportunity to drive foot traffic, especially in the current consumer environment."

The shift toward essentials and promotions puts more weight on less-profitable lines of business for Target, compared with categories like housewares and other big-ticket items. It's not clear whether the trend will reverse.

"The company's higher mix of discretionary products and somewhat premium price positioning — at least in the mindset of some consumers — remain headwinds relative to better performance discounters like Walmart," David Silverman, a senior director at Fitch Ratings, said in a note.

And while cash-strapped customers may be holding off on splashy purchases like a new TV, they're stopping by the beauty aisles and holiday pop-ups for a little something special to add to their cart of groceries.

"As we look at the discretionary business, what we see is the consumer is willing to shop as long as it's new, it's on-trend, and at an affordable price," Gomez, the retailer's chief commercial officer, said.

Still, analysts on the call questioned whether Target was counting too much on an eventual uptick in general merchandise spending and neglecting to adapt to the market's focus on value.

"Would you be willing to trade some of the upside in those areas for even more consistency from quarter to quarter?" the UBS analyst Michael Lasser asked.

"Despite some of the macro headwinds we've seen — really for eight or nine quarters in discretionary categories — we continue to see a consumer who's shopping for those seasonal moments," Cornell responded, adding, "Those are Target moments, and we're going to make sure we lean in and win."

• Target shares dropped sharply after its third-quarter earnings missed Wall Street estimates.
• The retailer cut its full-year financial guidance and reported sales growth of just 0.3%.
• CEO Brian Cornell said the retailer faces "unique challenges and cost pressures."

Target shares plunged as much as 22% Wednesday after the retailer posted disappointing third-quarter earnings and lowered its financial guidance for the year.

The Minneapolis-based retailer reported adjusted earnings per share of $1.85, down just under 12% year-over-year. Analysts had expected earnings per share of around $2.30.

"When we assess the consumer and macro environment, we're seeing many of the same themes that have defined the environment for some time," CEO Brian Cornell told investors on the earnings call. "Consumers tell us their budgets remain stretched, and they're shopping carefully."

Target has struggled to boost discretionary sales as consumers across the country are spending less money on non-essential items.

Revenue was lower than expected at $25.7 billion, compared to Wall Street forecasts of $25.9 billion, up 1.1% compared to the same period in 2023. Store comparable sales declined 1.9%, offset by growth online.

"Consumers are still spending, but they're focused more on essentials and have become far pickier about discretionary products and have cut back on the number of impulse purchases," GlobalData retail analyst Neil Saunders said in a note. "All these things undermine the Target model which partly relies on a robust consumer who is comfortable loading their cart with things that they want, but do not absolutely need."

In the release, Target also cut its full-year financial guidance, saying it expects earnings per share of between $8.30 and $8.90. At its second-quarter earnings in August, the retailer said it expected full-year EPS of between $9 and $9.70.

Cornell also noted "unique challenges and cost pressures" that weighed on the quarter's profitability, including the East and Gulf Coast port strikes, two hurricanes, and unseasonably warm weather.

Alongside lower-than-expected EPS, Target's profit fell 12.1%, down to $854 million compared to $971 million in the third quarter of 2023.

One bright spot for the company was a 10.8% boost in digital transactions, which helped to deliver the slow rise in overall sales, partially driven by the company's Circle 360 loyalty program.

The company said it added 3 million new members in the quarter, and saw an additional 10 million digital transactions during the period.

As of Wednesday morning, Target's share price was down around 15% in 2024 so far, lagging far behind retailers like Walmart and Costco, which have risen 62% and 42% this year, respectively.