According to a report from analytics firm Numerator on March 5th, Black and Hispanic shoppers have been shifting their spending to Costco, while retailers like Target have seen a decline in in-store visits.
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The report suggests this shift could be linked to changes in DEI (Diversity, Equity, and Inclusion) strategies at these retailers.
“Black and Hispanic households appear to be reducing visits at disproportionately high rates in the weeks following Target’s DEI rollback,” the report noted. In contrast, Costco, which has maintained its strong DEI stance, saw a notable increase of 7.7 million visits, while Target experienced a drop of nearly five million shoppers over four weeks ending February 9th.
David Albert, Chief Insights Officer at Collage Group, emphasized that inconsistency in corporate messaging can lead to a loss of consumer trust.
“That kind of seesawing back and forth and saying one thing and doing another, that’s what gets brands like Target in trouble,” he explained.
Target’s decision to roll back DEI initiatives, announced on January 24th, came after Donald Trump’s order to halt such programs, aiming to align better with its consumer base.
Civil rights attorney Nekima Levy Armstrong and New Birth Missionary Baptist Church Pastor Dr. Jamal Bryant both called for boycotts, with Bryant urging 100,000 Black shoppers to halt purchases and divest from Target. Meanwhile, Costco has remained firm in its commitment to inclusion, with CEO Ron Vachris stressing that DEI initiatives help boost profits.
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