Target’s DEI Rollback: The New Reality for Emerging Brands
- Kyle Frazier
- Feb 25
- 7 min read
Updated: Apr 16
In January 2025, Target’s decision to rollback its DEI initiatives sent shockwaves through communities.
For many minority-owned businesses, this announcement felt like a betrayal—particularly from a retailer once heralded as a champion of diverse entrepreneurs.
As a Target Takeoff Beauty Alum (2018) who personally navigated the challenges and triumphs of scaling a business in the retail ecosystem, a founder of Archtoculture, and a subject matter expert for Target Accelerators, I’ve had the privilege of working closely with underserved brands and placing them into Target’s ecosystem.
For me, this moment has been …. disappointing.
But it’s a wake-up call for clarity, action, and strategic collaboration.
The ugly truth is that we, as minority entrepreneurs, don’t control the government or these corporations. However, we do wield the power of our dollars, platforms, and collective voices.
The question is:
How do we harness that power to keep the momentum going for emerging brands and the communities they represent?
🔥DEI Rollbacks: What’s at Stake?
Who Benefits from DEI?
While companies in the U.S. have spent around $8 billion annually on DEI initiatives, the benefits of these efforts have not been evenly distributed. According to a McKinsey study, white women hold nearly 19% of C-suite positions, while racial and ethnic minority women hold only 4%. As Lanaya Irvin, CEO of Coqual, explains:
“Without looking at data intersectionally, we may not see the groups for whom we aren’t creating the conditions to thrive. For Black colleagues, the barriers they face to advancement seem to be largely invisible to their white colleagues.”
The perception vs reality of DEI and who is the “face” of DEI is a topic for another day, but feel free to read this article.
For BIPOC businesses, DEI programs offered a foothold into industries that have historically been difficult to break into. Jamika Rose, founder of Rosen skincare and fellow Target Takeoff Beauty Alum, who is working with Target through its Forward Founders program, highlights the significance of such initiatives:
“The retail ecosystem is built for the $10-20M brands of the world. DEI programs gave emerging brands resources, payment terms, and mentorship to scale. Without these, the road ahead gets even harder.”
The rollback of DEI initiatives threatens to eliminate accelerators, mentorship programs, and funding streams that helped level the playing field for small businesses. It also risks reinforcing the perception that diversity is an accessory to corporate goals, rather than a foundation of sustainable growth.
I hope their work preparing emerging brands continues.
From a branding perspective, if Target—which has built its reputation on fostering inclusivity and championing diverse voices—scales back its DEI initiatives it risks eroding the trust of the very communities and consumers who saw it as an ally—a trust that, once broken, can be nearly impossible to rebuild.
The Power of Strategic Support
As frustrating as the rollback is, we cannot let emotion alone cloud our judgment. Tabitha Brown, a business owner whose products are on Target shelves, addressed this balance in a heartfelt YouTube video:
“If we all decide to stop supporting said businesses… you take all our sales, and then those companies get to say, ‘Oh, your products are not performing,’ and they can remove them from the shelves. Then what happens to all the businesses who worked so hard to get where they are?”
🔍 Let’s talk about it: The Boycott Debate
Naturally with such an abrupt pivot on the rollback of DEI by Target, people most affected are discussing their options on how to respond and preparing to boycott. Let’s take a look at some of the pros and cons of boycotting.
✔️Pros of Boycotting
Economic Impact: Demonstrates the financial power of minority communities, pressuring Target to reconsider its decision.
Accountability: Forces leadership to justify their actions or outline alternative support for diversity.
Community Solidarity: Unites minority groups, showcasing the strength of collective action.
Raising Awareness: Highlights the importance of DEI programs and sparks broader conversations on corporate responsibility.
❌Cons of Boycotting
Harming Minority Brands: Reduced sales could negatively affect minority-owned businesses still on Target shelves.
Job Risks: Target employees, many from minority communities, could face job insecurity due to reduced revenue.
Misinterpretation: Boycotts may be seen as anti-business instead of advocating for equity.
Limited Impact: Without widespread participation, the financial effect may be too small to drive change.
Entrepreneurs are grappling with the emotional fallout of Target’s rollback. Many are facing significant operational challenges as well. Melissa Butler, founder of The Lip Bar, took to Instagram to address the concerns of fellow founders, noting that many feel 'upset, disappointed, and blindsided' by Target’s sudden shift in commitments. With existing contracts and inventory already tied to the retailer, some entrepreneurs are now navigating uncertain waters, questioning what this means for their brands and their futures.
“Obviously we are upset….Think about how upset the brand founders are who were blindsided.”
🌟Other Strategies: How to band together
The brands on shelves need our support now more than ever—to thrive and to prove that diverse entrepreneurs deserve a permanent place in retail. Boycotting these stores completely risks erasing the progress we’ve fought for. Instead, we could:
Support Brands Intentionally
Empower Startups
Advocate for Change
Stand with Employees
💪🏾Emerging Brands: Beyond Labels
One of the most important shifts we can make is redefining how we view ourselves and our businesses.
“We are emerging brands. Not Black, Brown, or Yellow. As entrepreneurs, we didn’t create products to fit a category—we created them to solve problems. DEI was one door, but it was never the only door.”
Let’s stop letting corporations define our identity. Instead, we must leverage our platforms, communities, and shared knowledge to create a collective voice that’s impossible to ignore.
📍What’s Next?
So, where do we go from here? I’ll suggest a possible roadmap for navigating this uncertain landscape:
Support the Brands on Shelves: Every purchase is a vote for continued representation. The startups on these shelves today are laying the groundwork for the next wave of entrepreneurs.
Advocate for Executive Accountability: Push for open dialogue with leadership teams to ensure that underrepresented brands remain a priority, even as programs are scaled back.
Invest in Collaboration: Share resources, knowledge, and networks with other entrepreneurs to build resilience within our communities.
Build Our Own Infrastructure: While working within the system, begin laying the foundation for independent ecosystems that support diverse brands on a mass-market scale.
💭 Current Thoughts
The rollback of DEI initiatives is a stark reminder of the systemic challenges that minority-owned businesses face. But it’s also an opportunity to show resilience and unity. As Tabitha Brown so powerfully said:
“Don’t let them take us off of shelves. Don’t let them erase us. Numbers don’t lie. We’re needed. Our money is the dollar that really, really counts.”
Make no mistake, we DO have options. We can let frustration divide us, do nothing, boycott, or come together to focus on building something greater—something that ensures emerging brands not only survive but thrive.
Together, we can create the next generation of opportunities and policies that uplift founders and solidify the presence of Emerging Brands.
As a creative agency owner, my focus is on helping emerging brands adapt to challenges, amplify their stories, and find ways to navigate this pivotal moment.
Update: DEI Boycott and Customer Pushback
The fallout from Target’s decision to scale back its DEI initiatives is gaining momentum, and consumers aren’t staying silent. Advocacy groups and everyday shoppers are making their voices heard—some through organized boycotts, others by shifting their dollars to brands that actively support diversity.
Minority-owned businesses within Target’s ecosystem are feeling the ripple effects. While some founders worry about what this means for their long-term retail presence, others are doubling down on community-driven support to stay resilient.
Boycotts as a strategy remain up for debate, but what’s clear is that consumer power is a real thing. The response to this rollback is proof that the public holds brands accountable—not just with words, but with wallets. This situation is still unfolding, and the next moves from both Target and its customers will be important to watch.
The Cost of Scaling Back DEI: Consumer Trust and Financial Impact
Scaling back Diversity, Equity, and Inclusion (DEI) initiatives can have significant financial repercussions for companies. According to research by the Collage Group, multicultural consumers account for more than 65% of U.S. spending growth. Brands that fail to meet their expectations risk falling behind in the market. Trust is a crucial factor—46% of Black consumers and 55% of LGBTQ+ individuals are skeptical of companies that publicly engage in social causes but lack true diversity within their organizations.
The backlash Target has faced from both sides of the cultural spectrum underscores a fundamental challenge for brands: defining their values and aligning their strategies with the consumers most critical to their growth. Whether facing boycotts for being “too woke” in 2023 or scrutiny for scaling back DEI efforts in 2025, the consequences of misalignment are swift and significant, impacting both brand momentum and purchase intent.
In contrast, companies like Apple have maintained their DEI commitments. Recently, Apple shareholders overwhelmingly rejected a proposal to eliminate the company's DEI programs, with 97% voting against it. This decision underscores Apple's dedication to diversity, which CEO Tim Cook believes is critical for business success.
These examples highlight the importance of aligning corporate actions with the values of a diverse consumer base. Scaling back DEI efforts can lead to consumer distrust and potential financial losses, while steadfast commitment to inclusivity can enhance brand loyalty and market position.