A surprised woman points to a Target logo inside a red circle over the image of a Costco store.
CONSUMER AFFAIRS

New cold shower for Target in the US: Costco is already celebrating it

Target's latest and unexpected decisions in the United States could lead to an unexpected winner: Costco

The environment for major food distribution chains in the United States isn't calm in 2025. Some chains, such as Target, have even had to confirm very poor results. Many people point to the company's latest decisions as one of the reasons for this negative outlook.

In this regard, Target faces an increasingly difficult situation. After reducing its commitment to diversity and inclusion policies, it has seen its sales drop and lost some consumer support. Meanwhile, Costco is watching from the sidelines and could benefit from the new boycott announced against its competitor.

Storefront with a large red and white sign at the entrance and a parking lot in front.
Target's sales are dropping by 3.8% in 2025 | Target

A difficult year that isn't getting better

The company started the year with a controversial shift in its internal strategy. In January, Target decided to abandon several of its initiatives focused on racial diversity and equity. This included the removal of an LGBTQ+ rights survey and the end of three-year inclusion goals. Many consumers saw these measures as a step backward, and boycotts soon followed, according to The Street.

During February, foot traffic in physical stores dropped by 9% compared to the same month the previous year. Although March showed a slight recovery, the decline was still 6.5%. In its first report of 2025, the company revealed that comparable sales had decreased by 3.8%, with fewer transactions and a lower average spend per customer.

A new boycott threatens to make things worse

Now, Target faces even greater pressure. The organization People’s Union USA has called for a new boycott from June 3 to 9, demanding clearer action from the company. The group, which has already organized campaigns against Amazon and Walmart, is now targeting Target as a symbol of disconnection with consumers.

Facade of a Target store with a hiring sign and people walking by the entrance.
Target has removed diversity and equity goals in their stores | en.edatv.news

Its founder, John Schwarz, has asked that during that week people completely avoid shopping at Target, even if that means turning to companies previously boycotted. The message is clear: this time they want the punishment to be lasting and for the company to feel the consequences. After Target, the group plans to act against McDonald’s.

Meanwhile, Target is navigating this storm while other players in the sector watch closely. Among them, Costco is positioning itself as a solid alternative, without being involved in recent controversies. Its more stable image and competitive pricing policy could attract consumers disenchanted with Target.

With the boycott underway, many families will look for different options for their shopping. In this scenario, Costco could see an increase in customer traffic in stores. Although there are no guarantees, past experience shows that these campaigns usually have an immediate impact on buying behavior. The challenge for Target will be to stop the decline without completely giving up its values or losing more support. 

➡️ Consumer Affairs

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