Target (TGT) Stock Under Pressure as Teachers Union Launches Back-to-School Boycott

Key Takeaways

• The 1.8 million-member American Federation of Teachers approved a resolution urging members to avoid Target during the back-to-school shopping season
• The union’s action stems from dissatisfaction with Target’s handling of ICE operations in Minneapolis that resulted in two U.S. citizens’ deaths
• CEO Michael Fiddelke joined other executives in requesting “de-escalation” but avoided naming victims or directly criticizing federal authorities
• The retailer recently concluded a year-long DEI-related boycott after investing in Black enterprises and HBCUs
• Under new leadership, Target forecasts approximately 2% net sales growth for the current fiscal year as part of its recovery strategy

Target (TGT) finds itself confronting another public relations crisis while attempting to stabilize operations following three consecutive years of declining revenue.

Target Corporation, TGT

On Thursday, the American Federation of Teachers approved a resolution encouraging its 1.8 million members to purchase back-to-school items from neighborhood retailers instead of Target. The union’s grievance focuses on what it views as Target’s inadequate response to intensive federal immigration operations in Minneapolis throughout the winter months.

Two American citizens, Renee Good and Alex Pretti, lost their lives after being shot by federal agents during ICE enforcement activities in the Twin Cities. The AFT characterized Target’s reaction to what the union termed an “occupation” of the retailer’s hometown as insufficient.

According to AFT President Randi Weingarten, the organization contacted Target through written correspondence and held discussions with company representatives prior to advancing the resolution. She stated that Target “could have very easily dealt with both” the diversity initiative concerns and immigration matters but declined to do so.

While CEO Michael Fiddelke joined other Minnesota business leaders in late January by co-signing correspondence requesting “immediate de-escalation,” the document notably omitted the victims’ names and refrained from criticizing the president, his administration’s immigration approach, or federal enforcement personnel. Weingarten described this omission as “insulting.”

Fiddelke also distributed an internal video statement to staff members that acknowledged ongoing events without demanding the departure of ICE personnel or demanding responsibility for the two fatalities.

The AFT intends to promote comparable boycott resolutions at the AFL-CIO’s summer gathering in Minneapolis and during NAACP and LULAC conferences.

Recurring Boycott Challenges

This represents far from Target’s initial encounter with organized consumer activism. In the previous year, the company endured significant boycott pressure — known as “Target Fast” — orchestrated by Atlanta-based pastor Jamal Harrison Bryant in response to its scaling back of diversity, equity, and inclusion initiatives.

That particular boycott officially concluded this month following Target’s financial commitments to Black-owned businesses and charitable contributions to Historically Black Colleges and Universities. Bryant recognized the “meaningful contributions” the corporation delivered to the Black community.

However, universal satisfaction remains elusive. Nina Turner, a former Ohio state senator, along with other advocates, maintain they’re continuing to encourage consumer avoidance of Target. The AFT — which had previously backed the DEI-focused boycott — has now shifted attention to a different issue.

Weingarten explained that the back-to-school shopping period provides the union with optimal economic influence, and Thursday’s resolution timing allows Target “enough time to come back to its senses.”

Recovery Strategy Underway

Newly appointed CEO Fiddelke presented a comprehensive strategy at an investor conference in Minneapolis earlier this month. The blueprint encompasses store renovations, merchandise improvements, and price reductions across more than 3,000 products.

Target recently celebrated the opening of its 2,000th location and anticipates net sales expansion of approximately 2% during the current fiscal year — with positive growth projected for each quarter.

The corporation has previously attributed revenue decreases in part to consumer backlash following the DEI policy changes, combined with merchandising errors and weakened consumer expenditure patterns.

Target chose not to provide specific commentary on the AFT resolution but referenced its commitment to donating 5% of profits and maintaining a discount initiative for educators.

The AFT’s back-to-school campaign is strategically scheduled to impact Target during the summer shopping period that traditionally generates substantial retail activity in this merchandise category.

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