Costco is looking like the big winner after Target's DEI rollback

[BumRushDaShow]

Source: msn/Business Insider

4h


The backlash to the backlash over DEI is starting to show up at Target and Costco. While both retailers have long made so-called corporate social responsibility a big part of their brand identities, they responded in remarkably different ways regarding DEI policies in the face of a second Donald Trump presidency.

In January, Target said it was scrapping some of its DEI-related programs, while Costco's shareholders successfully defended theirs against an activist shareholder proposal. Now, a new survey from consumer analytics firm Numerator finds customer foot traffic and market share have shifted from Target to Costco, particularly among shoppers who say DEI is important.

In terms of year-over-year visits, the firm said Target has seen nearly 5 million fewer shopping trips during the four weeks ending on February 9. By contrast, Costco saw nearly 7.7 million more visits during the same period. Neither company immediately responded to a request for comment from Business Insider. While Numerator said the changes "may be linked" to the companies' respective DEI stances, a number of other factors, such as persistently high consumer prices and the availability of eggs, may have contributed to the shifting market share between the two retailers.

Still, the shifts were most pronounced among Black and Hispanic/Latino households — and especially during the first week of February. In particular, Numerator said that Hispanic or Latino households drove more than a third of Costco's gains, nearly twice the rate that would be expected based on demographic representation alone.

Read more: https://www.msn.com/en-ie/money/companies/shoppers-are-ditching-target-after-its-dei-waffling-and-more-are-choosing-costco/ar-AA1AMOVi

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Link to Numerator SURVEY (Executive Summary) - The Impact of DEI Cuts on Retail

[Blue Owl]

1. Good.

I keep getting these text messages on how Costco is under fire for ignoring Dump’s DEI bullshit — from who are they “under fire” from, a minority group of fucking Nazis?

[Cha]

2. TY & KICK for Costco!

The Fascist Fuck UP ain't Changing Our DEI!

[LetMyPeopleVote]

3. I love Costco

I go every two or three weeks. It may be time to make a trip this weekend

[msongs]

4. the key difference between costco and target merchandizing is....

target is a full service retailer with thousands of small items in all departments while costco features far fewer products in larger sizes and quantities. ya can't get one can of beans or one toothbrush at costco.

[Blasphemer]

5. Perhaps Target is creating a vacuum Costco can fill by expanding their model. nt

[BrianTheEVGuy]

6. You are correct

Target is high frequency, high prices and lots of impulse buys.

Costco is low frequency, low prices, mostly essentials but some impulse buys.

Both models used to work. But then Target blew up its “progressive innovative brand that elevates underrepresented communities”” image and just became Overpriced Red Walmart. I don’t see how they recover — the relationship they built with diverse customers for decades based on “we see you and support you” has been completely destroyed, and those customers are enraged and not forgiving. There’s no coming back from that.

JCPenney made a similar mistake — less bad, actually — by pissing off all of its core customers when the former Apple Store dude took over and tried to remake it from a middle class retailer with low prices into an exclusive boutique department store with $4,000 couches and fancy high end designer clothing. Existing customers fled and never came back, even after the company apologized and begged them to return. It ended in bankruptcy. Simon Malls now owns JCP because it needs to keep the stores open as “anchors” in its struggling mall environment.

[Littlered]

7. That's awesome, I guess.

Many of us can’t afford a Costco membership. Or if we could, they are prohibitively far away. Target is close and has quality products at a very reasonable price. It’s kind of sickening to see what some of us have become.

[ProudMNDemocrat]

8. Went shopping today at Costco in Eden Prairie...

Always busy no matter the day.

A Costco Executive Member since 2013 when our Rochester store opened up not far from the house we once lived in. LOVE Costco.

[Lemon Lyman]

12. Same!

Although we live in Iowa, we used to trek up the Minneapolis area a few times per year and load up at Costco.

We joined at the Coon Rapids location soon after it opened in the fall of 2001. I think it may've been the 2nd Costco location up there, with St Louis Park being the 1st.. Since then there have been a bunch more that've opened. Iowa now has 4.

The way they build doesn't work if you don't live in or near a bigger city. They build one in a city. It gets crazy busy, so they build a spillover one nearby. They don't build in slightly smaller areas like their competition.

I'm thrilled they're doing well, especially in light of their recent stance on the DEI pushback. They've always had pretty good business ethics. Their previous CEO, Jim Sinegal, is a proud Democrat who hosted fundraisers for President Obama. He spoke at the 2012 Democratic National Convention.

https://en.wikipedia.org/wiki/James_Sinegal

[BOSSHOG]

9. There is not a Costco within 150 miles of us

we’d shop there if we were close. Vote for republicans, punish people who do the right things.

FLY EAGLE FLY MY FRIEND. I’m getting My Super Bowl Swag for my Birthday in a coupla months.

[Staph]

11. The same for me.

155 miles to Columbus, Ohio.

[wolfie001]

10. They pay better too!!!

Some are Union!

[hunter]

13. So is Target now the straight Christian white people store?

I grew up in a straight Christian white people town and there's no way in hell I'd ever go back.

[BumRushDaShow]

14. Well until they sell guns and ammo

and get rid of their "open carry" ban - https://www.motherjones.com/politics/2014/07/target-rejects-guns-open-carry-second-amendment/

then I doubt they would get much foot traffic from that "coveted" group.