📦 Podcast Summary: Costco Is the New Target

In the world of big-box retailers, a surprising shift is taking place: Costco is becoming the new darling of socially conscious shoppers—once a position held firmly by Target. Why? As Target has appeared to retreat from its longstanding stance on diversity, equity, and inclusion (DEI), Costco has doubled down. While Target faces dual backlash—from anti-“woke” critics and progressive supporters alike—Costco’s blend of low prices, luxury finds (think gold bars and Dom Pérignon!), and an unapologetic DEI commitment is winning over a growing number of customers. Combine that with record foot traffic and strong shows of consumer loyalty, and you’ve got a values-driven retail reshuffle. In short: where Target once wore the halo of progressive shopping, Costco’s cart is now carrying the crown.

🛒 Key Takeaways:

• Target’s once-loyal fans are turning away after the brand scaled back on DEI initiatives and LGBTQ+ support, trying to appease critics from the right, but alienating its core.

  • Result: Store visits dropped by nearly 5 million in four weeks ending February 2024, according to Numerator.

• Costco embraced DEI as “just good business,” and it's paying off:

  • Costco gained 7.7 million more store visits in the same four-week stretch.
  • Latino shoppers alone accounted for about a third of that growth.

• Web traffic data echoes the trend:

  • During the Feb 28 “economic blackout” led by Black faith leaders and other pro-DEI groups, Target’s online visits dipped 9%.
  • Costco’s traffic? Up 22%, according to Similarweb via Forbes.

• Reddit anecdotes support the shift, with users noting long lines for Costco memberships and packed parking lots.

  • “The lines for new member sign-up were 10–15 people deep,” reported one user. “I’ve never seen that before.”

• Target’s strategy now feels muddled—burnt from both sides; it’s still leaning into fashion-forward brand partnerships (e.g., upcoming Kate Spade collection drop), but those may not be enough to mend fences.

• Walmart and Amazon, meanwhile, haven’t taken as big a hit, likely because they’ve always leaned on price and convenience—not values—as their main draw.

• Costco continues to polish its bargain-brand-meets-luxury vibe.

  • You can now buy gold bars, high-end watches, and even 10-carat diamonds at your local Costco warehouse.
  • Board Chair Hamilton James described it as part of its treasure-hunt experience.

• The success hints at a new consumer equation: values + value = loyalty.

🎙️ Bottom line: Costco’s message is clear—come for the $1.50 hot dog, stay for the inclusive shopping experience…and maybe pick up a Rolex on your way out.

📝 Source: FastCompany.com, “Costco Is the New Target” by Jeff Beer

🔍 Verification: The article cites data from respected analytics firms (Numerator, Similarweb, Placer.ai), and aligns with broader industry trends on consumer shifts regarding DEI values. Additional independent news reports on the boycott and DEI backlash confirm the validity of the trend.
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