When a major brand shifts away from its commitments, customers notice. Target recently announced that CEO Brian Cornell is stepping down amid slumping sales, a decline partly fueled by the company’s reversal on diversity, equity, and inclusion (DEI). After 14 years of promoting DEI, Target removed its goals and scrubbed its website of related content in January 2025. The backlash was swift: more than 250,000 people pledged to boycott the retailer, resulting in steep declines in foot traffic. The lesson is clear—accountability matters, and customers reward authenticity.
Target’s Reversal Shows Why Accountability Builds Trust
In the weeks following Target’s DEI retreat, RetailBrew reported that foot traffic fell below 2024 levels in 20 of 22 weeks. Meanwhile, Costco, which doubled down on its DEI commitments during the same period, saw a surge of nearly 7.7 million more visits. Customers are making it clear: they don’t just shop for price or quality—they also want to support organizations that align with their values. Accountability isn’t optional; it’s a competitive advantage.
Authentic Commitments Matter More Than Performative Promises
One reason Target faced such sharp criticism is that its actions seemed inauthentic. The company had previously positioned itself as a strong supporter of DEI, especially during times of social momentum. Reversing course felt like a betrayal of its own words. Research shows that 96% of Gen Z shop with intention, and 66% buy only from brands aligned with their values. Making shallow or performative commitments often backfires worse than making no commitments at all.
Costco’s Example: Aligning Commitments With Business Needs
By contrast, Costco has embraced inclusion as a long-term business strategy. Its board has clarified that commitment to DEI doesn’t mean quotas or lowering standards—it means building a diverse, qualified workforce that serves members better. Costco openly links its growth and culture of loyalty to the diversity of its employees. This consistency strengthens trust, drives sales, and positions the brand as one that keeps its word. Leaders who stay true to their values, even when challenged, inspire lasting customer loyalty.
The Takeaway: Consumers Hold Brands Accountable
Target’s misstep is a warning to organizations everywhere: accountability is not a PR slogan—it’s a business necessity. Customers are more informed than ever and are voting with their dollars, rewarding companies that remain steadfast in their values. Diversity, equity, and inclusion was never meant to be a trend. Companies like Costco prove that authentic commitments build both trust and profit. For leaders, the choice is simple: stand firm in your values, or risk losing customer confidence.
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