As shoppers turn away from Target, its employees appear to be dissatisfied too, as half of them say they have little faith in the store, according to a new survey.
For over two years, Target’s sales have been either flat or falling as competitors have adopted a similar trendy yet affordable approach to their merchandise, and amid backlash for its reversals in diversity, equity and inclusion policies.
A companywide survey released in early June found about 40 percent of the around 260,000 staffers who replied said they didn’t have confidence in Target’s future, the Wall Street Journal reported Sunday.
Scores from respondents at Target’s Minneapolis headquarters were even lower. Yet, about 80 percent of these workers said they plan to stay with the company, according to a Target spokesman who spoke with the Journal.
The spokesman admitted the survey shows “our team is not happy with the current performance.”
The Independent has reached out to Target for comment.
Target is also striking out with shoppers who are leaving their once-beloved “Tar-zhay” for retailers that are perceived to have lower prices and better items, the Journal reported, citing internal data and former and current executives.
“In a world where we operate today, our guests are looking for Tar-zhay,” Target Chief Executive Brian Cornell told investors in a March meeting, per the Journal.
The fancy nickname was coined decades ago for the store that sold fashionable items and more elevated everyday goods compared to retailers offering budget basic goods, such as Walmart, according to the publication, which spoke with former Target CEO Bob Ulrich.
“We just built these fun, great things at a hell of a price,” Ulrich said.
Target has taken hits after pulling back on its Pride merchandise in 2023 following considerable backlash. The chain announced earlier this year it would end some diversity programs as the Trump administration rebuked companies’ DEI initiatives nationwide.
When Target rolled out its 2023 Pride collection, several videos popped up on social media of customers destroying the pro-LGBTQ attire.
Target said at the time it had “experienced threats impacting our team members’ sense of safety and well-being while at work” and that it would be “removing items that have been at the center of the most significant confrontational behavior.” The company has never fully recovered from the backlash it received over the collection.
Arianna, a 31-year-old teacher and mom from East Texas, recently told The Independent how she used to take her young daughter to Target for a weekly trip before June 2024.
“It was just a relaxing place to go and spend time with my girl,” she said.
But then she joined shoppers who decided to boycott the store after announcing its pull-back on DEI initiatives.
“I don’t like how they’re propagating right-wing ideals by removing their DEI initiatives and basically turning their backs on [people of color],” Arianna said.
President Donald Trump’s sweeping global tariffs are also likely to be a concern for retailers and shoppers, who some claim are already feeling the cost. Retailer workers at stores such as Target and Walmart shared on Reddit what they claim are price hikes believed to be caused by the tariffs shortly after Trump announced them.
A Target worker uploaded a photo of the store replacing the $9.99 tag on a six-foot phone charging cable with a new tag for $17.99 — an 80 percent increase.
Target’s internal and external issues come as it looks for a new CEO to take over for Cornell, who is 66 years old.
Target Chief Operating Officer Michael Fiddelke, 49, is on the list of candidates to potentially lead the company, the Journal reported, citing people familiar with the matter.
But 96 percent of investors said they preferred an external candidate for Target’s new CEO, according to a June survey investment bank Mizuho Securities sent to medium and large investors, per the Journal.