Target Shares Fall After National Teachers’ Union Joins Boycott

Sept. 2, 2025, 2:00 PM EDT

By: Jeff Green, Jaewon Kang, Bloomberg News

Stock Shares Falling

Target Corp. shares declined the most since mid-August after the American Federation of Teachers, the second-largest US teacher’s union, endorsed a boycott against the retailer’s decision to end some diversity programs amid pressure from conservative activists and the US government.

The endorsement from the 1.8 million-member union was announced during Labor Day activities in Chicago that were attended by Atlanta-area pastor Jamal Harrison Bryant, along with other leaders of the boycott, which started in March. Target has said the opposition hurt fiscal first-quarter sales, though they’ve recovered somewhat since then.

Target shares fell as much as 3.9% on Tuesday, more than the overall market and the most since Aug. 20 when the company announced that Chief Operating Officer Michael Fiddelkewould succeed current Chief Executive Officer Brian Cornell in February. The company’s stock has dropped roughly 30% this year, while both the S&P 500 consumer staples index and the S&P 500 Index have gained.

“Target rolled back promises to help the people who have been loyal customers, because of a president who is trying to roll back history and ignore the struggle for freedom and justice,” AFT President Randi Weingarten said in a statement. “Those customers, who have helped Target’s bottom line, now feel set aside, ignored and dismissed.”

The back-to-school season is one of the busiest shopping periods for retailers as many households stock up on supplies, clothes and other items ahead of the new academic year. It’s a crucial period for Target, which is seeking to rekindle growth against the backdrop of weak discretionary spending and uncertain consumer sentiment.

Target hasn’t responded to requests for comment.

“To now have labor and teachers working with us, I think it’s going to push us across the finish line,” Bryant said in a phone interview on Monday. “Target is going to realize it’s not just a lone pastor.”

Bryant added that he plans to enlist the AFT to organize protests at Target locations, with timing still under discussion.

Target is among several dozen large companies, including Amazon.com Inc. and Walmart Inc., that have scaled back or ended diversity, equity and inclusion programs over the past year, starting with a June 2024 campaign by anti-DEI crusader Robby Starbuck. The move gained more strength after President Donald Trump said his administration would root out “illegal DEI” that discriminates against White workers.

It remains to be seen whether the teachers’ union will boost the boycott’s impact. The company’s slump persisted during the last quarter, though the drop in sales was less than what analysts estimated. Sales and foot traffic also improved from the previous period, a suggestion that Target was moving past consumer backlash.

Outgoing CEO Cornell met in April with the Reverend Al Sharpton and Bryant to discuss the boycott, without taking any action. The boycott’s organizers are asking Target to make a series of commitments to the Black community and rescind its January decision to end some DEI programs.

Target, which gained popularity with its “cheap chic” offerings, has had a bumpy run in recent years. The retailer’s business boomed during the pandemic as shoppers decorated their homes and stocked up on essentials such as toilet paper. That ended in late 2022 when people began scaling back purchases of clothes, toys and other discretionary products due to inflation.

The following year, the company’s Pride collection – including bathing suits designed for transgender people – garnered backlash from some customers. After the company halted sales of some of the products, advocacy groups urged it to put them back on shelves.

To contact the reporters on this story:Jeff Green in Southfield, Michigan at jgreen16@bloomberg.net;Jaewon Kang in Chicago at jkang351@bloomberg.net

To contact the editors responsible for this story:Emily Cohn at ecohn24@bloomberg.net

Heather Smith, Tim Quinson