Goodbye Target: many customers are switching to Sam's Club after what just happened

Target is going through a crisis that's driving away a large portion of its customers. In the United States, many shoppers have started migrating to Sam's Club, a direct competitor that's gaining ground amid controversial changes at Target.

The main reason is a series of reforms that Target implemented permanently, which have caused strong backlash. Consumers are upset because the company changed several key policies, affecting the shopping experience and product assortment.

In the first months of 2025, Target reported sales figures that disappointed. Total sales for the first quarter fell by 2.8% compared to the previous year, totaling nearly $24 billion. In addition, sales at physical stores dropped by 3.8%. The number of purchases in stores and online also decreased, and the average spending per customer went down.

One of the factors weighing on this decline is the economic situation. Tariffs imposed in recent years have forced many families to adjust their budgets. In addition, the reduction in diversity and inclusion initiatives at Target has caused discontent. The company cut its offering of LGBTQ+-themed products just as important dates like Pride Month approach.

This decision was heavily criticized, especially because Target had been a leading brand in supporting minority communities. The reduction of those products enraged activists and many customers, who saw this move as a step backward.

Target Suffers Even More 

The impact wasn't limited to sales. Target's shares took a significant hit, with a 3.5% drop on the stock market on May 21. Investors are concerned about the company's strategy and results.

Brian Cornell, CEO of Target, acknowledged the difficult situation in a recent statement: "We're not satisfied with these results, so we're acting urgently to overcome this period of volatility." The company is seeking to regain its customers' trust with a new strategy.

Part of that strategy includes expanding the range of affordable products. Target plans to launch about 10,000 new items, many priced from one dollar and most under $20. The idea is to attract consumers who are now more price-conscious.

Meanwhile, Sam's Club is taking advantage of the opportunity to attract those dissatisfied customers. Its membership sales model and aggressive promotions allow it to gain popularity at a time when Target is facing criticism.

Also adding to this context is Walmart's recent decision to charge for cart use, which has caused complaints within its own ranks. The U.S. retail sector is undergoing a transformation, seeking to adapt to a new consumer who spends more cautiously.

Target's future is uncertain. To stay relevant, it will have to find a way to reconnect with its audience, who are now looking with interest at options like Sam's Club. The coming months will be decisive in determining whether the chain manages to reverse its decline or loses more ground to its competitors.