Founder Melissa Butler says The Lip Bar was impacted by the Target boycott.
How Target’s DEI Stance Impacted Its Q1 Earnings
As AFROTECH™ previously reported, Target made the decision to scale back its three-year diversity, equity, and inclusion (DEI) efforts, which included dismantling a program that worked to feature Black-owned businesses in its stores. The company also stopped sending reports to an external diversity-focused organization.
This prompted a 40-day consumer boycott led by Rev. Jamal Bryant, which attracted participation from nearly 200,000 consumers, per Atlanta News First. Target experienced a decline in foot traffic for 11 consecutive weeks, and its first-quarter earnings were $23.8 billion, which was 2.8% lower than the same period the previous year, according to a press release.
To no surprise, business owners shelved at the store have felt the brunt of the boycott. This includes Butler who shared that sales had plummeted between 30% and 40%.
“When people ask me how our Target business is doing, and then I tell them that it’s terrible, people are shocked. They’re like, ‘Oh, god. Oh my god.’ I’m like, ‘Yeah. Our sales are down 30% [to] 40%. That’s exactly what we thought was gonna happen,’” Butler mentioned in an Instagram video.
She clarifies that she’s not urging consumers to shop at Target solely based on The Lip Bar’s performance there. However, she emphasizes the importance of spending intentionally and encourages consumers to shop directly with the businesses impacted.
Butler continued, “And that’s not to say that people should continue or go back to shopping at Target. It’s just to say that we knew that there was going to be a a huge impact. And in order to offset that impact, it requires people to be really intentional about where they are shopping, meaning you have to go directly to that business, either to that business’ website or shopping them in other channels.”
