*Target, the Minneapolis-based retail giant, is making a bold push to lure customers back with budget-friendly back-to-school offers, addressing a turbulent year marked by declining sales and consumer backlash.
The company faced significant criticism after abandoning its $2 billion commitment to support Black-owned businesses by December 2025 and scaling back its Diversity, Equity, and Inclusion (DEI) initiatives on January 24. This decision triggered a 40-day “FAST” boycott from March 3 to April 19, which drew over 150,000 participants and led to a 6.2% drop in foot traffic, per Placer.ai data, alongside a dip in stock value and a reduction in CEO Brian Cornell’s compensation.
As The Street reports, the retailer’s first-quarter 2025 earnings report revealed a 3.8% decline in comparable store sales, despite a 4.7% rise in digital sales. Cornell, during an earnings call, expressed dissatisfaction with the results, noting an “exceptionally challenging environment.” He cited pressures from inflation, five months of declining consumer confidence, and uncertainty over potential tariffs as key factors.
“For several years now, we’ve seen pressure in our discretionary businesses,” Cornell said, highlighting shifts in spending due to economic pressures.
“On top of those ongoing challenges, we faced several additional headwinds this quarter, including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs, and the reaction to the updates we shared on Belonging in January,” Cornell added.
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To counter these challenges, Target is focusing on affordability for the back-to-school season. The retailer announced it will maintain last year’s prices on essential school supplies, with over 1,000 items priced under $5. A bundle of 20 key supplies, including “crayons, colored pencils, notebooks, folders,” will cost less than $20, while first-day outfits start at $5 and teacher essentials at $3.50.
College essentials such as bedding and storage will remain under $40. “This is such an important time for everyone preparing to head back to class,” said Chief Commercial Officer Rick Gomez, emphasizing Target’s commitment to value.
Target Circle members gain early access to deals from July 6 to July 12, with college students and teachers eligible for a 20% storewide discount during specified periods and a 50% discount on a one-year Target Circle 360 membership through September 13.
“The Target team will be there for families by holding last year’s prices on key school supplies and standing tall for unrivaled style, quality, and exceptional value,” Gomez added.
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