Target apologizes for controversial Halloween costume, but consumer trust may be harder to restore

Target’s latest misstep comes as the retailer faces scrutiny over its decision to scale back its diversity, equity and inclusion commitments. Currently trying to rebuild customer traffic, the retailer found itself in the center of a new backlash this weekend, after facing backlash over selling a children’s Halloween costume that resembled racist caricatures.

Advertised as “Kids’ Glow under Blacklight Circus Clown Halloween Costume Bodysuit,” the costume was listed on Target’s website for 25 dollars, accompanied by an image of a child wearing a black-and-orange outfit with dramatic red lips over black mesh. Critics said the costume evoked blackface minstrelsy, a 19th-century American theatrical tradition in which white performers used blackface to caricature Black people.

“As a company, we know we got this wrong, and we are deeply sorry,” Target said in a statement on Monday. “The costume is offensive and should never have been part of our assortment. It is no longer available for sale. We know this is especially hurtful for our Black guests, team members and partners. Removing the costume is an important first step, and the company is looking closely at how this happened and what needs to change to ensure this won’t happen again.”

A matter of trust

The controversy arrives at a delicate time for Target’s business. The company is trying to rebuild customer traffic, improve its store experience and restore confidence after a prolonged period of weak performance. In February, Target reported its profit had fallen 14 percent over five years, its market value was about half its 2021 level. The retailer was also facing pressure from shareholders over reputational damage, customer boycotts and management decisions, as reported by Reuters. By August, Target had reported stronger second-quarter results, including 3.8 percent comparable-sales growth and a 3.6 percent rise in traffic, and raised its annual forecast.

In 2025, Target rolled back its DEI commitments amid pressure from the Trump administration. The company said it would end its Racial Equity Action and Change initiatives, stop participating in external diversity-focused surveys, including the Human Rights Campaign’s Corporate Equality Index, and rename its “Supplier Diversity” team “Supplier Engagement.” The announcement led to a national boycott from consumers and civil-rights groups who supported Target’s previous inclusion policies. The company had previously pledged to invest more than 2 billion dollars with Black-owned businesses by the end of 2025 and to add more than 500 Black-owned brands.

Target’s recent backlash cycle

Before the 2025 DEI backlash, Target disappointed some consumers in 2023 after removing some LGBTQ+-themed products and changing the presentation of Pride merchandise after anti-LGBTQ+ critics confronted employees, knocked over displays, and posted threatening videos. The retailer said the changes were made to protect employee safety. In 2024, Target limited the collection to select stores, fueling another backlash, as consumers questioned why Target had spent years presenting itself as an inclusive retailer, then appeared to moderate that positioning after a customer revolt.

In 2026, Target has also faced criticism over its response to federal immigration-enforcement activity in Minneapolis, where the company is headquartered. Activists argued that Target had not responded forcefully enough to ICE activity in and around stores. The American Federation of Teachers later urged its 1.8 million members and their families to shop elsewhere during the back-to-school period, as reported by AFT.