Target faces new boycott as teachers union urges back-to-school spending freeze
Target is facing a new boycott call from the American Federation of Teachers (AFT) over its stance on immigration enforcement. The union, with 1.8 million members, is urging shoppers to avoid the retailer for back-to-school purchases. Meanwhile, the company's stock has risen nearly 22% this year, despite broader market challenges. The AFT's boycott follows Target's response to federal immigration actions in Minneapolis. While the union has not specified a timeline, its members—teachers and education staff—are being asked to take their business elsewhere. This is not the first time the retailer has dealt with such pressure; a previous boycott linked to its diversity, equity, and inclusion (DEI) policies reportedly hurt sales.
Target's financial performance shows mixed results. Fiscal Q4 2025 net sales fell 1.5% year-over-year to $30.5 billion, with comparable sales dropping 2.5%. Full-year revenue also slipped 1.7% to $104.8 billion. Yet, the company generated $6.56 billion in operating cash flow last quarter, and its stock has climbed 22% year to date.
The retailer is pushing ahead with expansion plans. It will invest an extra $2 billion in 2026, splitting the funds between capital spending and operational upgrades. Over 30 new stores are set to open this year, part of a broader goal to add 300 locations by 2035. Currently, Target's market capitalisation stands at $54.2 billion, with shares trading between $115 and $120. Analysts maintain a consensus 'Hold' rating, with an average price target of $125.19. The AFT's boycott adds to Target's challenges, though its stock performance remains strong. With expansion underway and billions earmarked for upgrades, the company is focusing on long-term growth. How the boycott affects sales—and whether it mirrors past disruptions—will become clearer in the coming months.
