Target's Web Traffic Declines Amid Economic Blackout Day; Costco Gains Momentum

By Staff

NEW YORK, NY, March 4, 2025, 8 p.m — Target has experienced a dramatic decline in online traffic during The People’s Union USA Economic Blackout on February 28, as consumers responded to recent rollbacks of the retailer's diversity, equity, and inclusion (DEI) initiatives. According to data from Similarweb, visits to Target’s website dipped by 9% compared to two weeks prior, falling from 5.2 million to 4.7 million.

The decrease in traffic was even more pronounced among Target’s most loyal customers, with app traffic dropping by 14%, from 4.2 million to 3.5 million. The decline comes in the wake of increasing calls for boycotts against Target, particularly from Black faith and civil rights leaders advocating for a 40-day “Target Fast” in response to the company’s decision to conclude its three-year DEI goals.

In stark contrast, Costco emerged as a significant beneficiary of the boycott, seeing a 22% increase in web traffic on the same day, rising from 2.4 million to 2.9 million. Additionally, Costco’s app traffic rose by 3%, indicating strong consumer support for the retailer's commitment to its DEI policies amidst growing political and legal pressure on such initiatives.

While other major retailers also saw shifts in traffic during the economic blackout, the impact on Target was markedly pronounced. Walmart experienced a 5% decline in web traffic, dropping from 11.7 million to 11.2 million visitors, while Amazon's traffic fell by 2%, from 67.1 million to 65.9 million. Interestingly, Amazon's app traffic managed to increase by 1%, whereas Walmart's app traffic saw a 2% decrease.

The timing of the economic blackout and Target's traffic decline coincides with the company's announcement at the end of January regarding the scaling back of its DEI efforts. Experts suggest that the backlash against the retailer's decisions reflects a broader trend among corporations retreating from previously strong commitments to social justice issues.

As Target prepares to report its full-year 2024 earnings shortly, analysts are eager to gauge the financial impact of the boycott calls. The upcoming report will provide insights into whether the backlash has affected the company's bottom line. Despite the declining web traffic, Target had previously reported a 2.8% increase in net sales over the holiday season, including a nearly 9% rise in digital sales compared to the previous year.

The ripple effects of Target's recent decisions and the responses from consumers underscore an evolving landscape in retail, where corporate commitments to diversity and social responsibility are increasingly scrutinized by the public. As the situation develops, it remains to be seen how deeply the current consumer sentiments will affect Target and other retailers moving forward.