Target is once again facing a firestorm of criticism for an unforced error on diversity as it tries to navigate a challenging turnaround.
The Minnesota-based retailer found itself in the cultural crosshairs after it launched a Halloween costume for children with images that bore a striking resemblance to posters of racist minstrel shows.
The shopkeeper pulled the merchandise away and apologized Monday, but critics on social media weren’t so quick to let go of the issue.
“It’s amazing that they got themselves into this situation again,” former Target vice chairman Gerald Storch told Business Insider.
On Tuesday, Target stock closed nearly 4% below Monday’s price before the story broke overnight.
A company spokesperson declined to comment on the statement.
“It’s a very unfortunate misstep that interrupts a flow of good news from Target as the company has made progress,” Global Data retail analyst Neil Saunders told Business Insider.
Target reported its second quarter last week with strong sales and traffic growth as it looks to make a comeback after years of lackluster performance. The company is now in the middle of a critical situation back to school shopping season.
“What they need to pay attention to is whether this opens old wounds at DEI, whether it alienates some customer groups,” Saunders added.
Target faced a year of boycotts in 2025 after the company wound down some of its businesses diversity, equality and inclusivity initiatives.
Target’s latest stumbles — and those of other brands in recent years — show how the fast-paced, boundary-pushing nature of Halloween merchandising can be especially risky for retailers. Costume makers can easily fall into negative stereotypes and offensive tropes in an attempt to create something funny or scary.
Storch said the company should not get too distracted by this episode and continue to focus on its core business: offering products that people need and want.
“The Halloween costume snafu just leaves you puzzled as to how anyone could have seen that and thought it was OK, but it’s not a policy issue. It’s an execution issue,” he said.
What do you think of Target’s latest misstep? Let us know in the comments below.
