This has been a year of struggle for many retailers, but for Target (TGT), perhaps even more so.
Challenges Target has shared with other retailers include a harsh economic climate, changes in customer behavior, high labor costs, inflation, and aggressive competition.
However, Target encountered unique obstacles in 2025 and has since fought to turn things around. One stumbling block for the giant retailer was consumer backlash over how it handled its DEI initiatives and Pride products.
In January, Target “ignited a firestorm when it boldly decided to cut back its diversity, equity, and inclusion (DEI) policies,” writes Patricia Battle for TheStreet.
DEI policies aim to enhance opportunities in the workplace for people of various backgrounds, and Target’s cuts to these initiatives included withdrawing its participation in the Human Rights Campaign survey, which tracks LGBTQ+ corporate policies and practices.
The decision backfired, and Target faced several boycott threats from frustrated consumers. Its sales declined, and foot traffic in stores dropped.
According to the company’s Q10 filing for the second quarter of 2025, its net sales fell 0.9% from the comparable prior-year period to $25.2 billion. At the same time, comparable sales dropped 1.9%, reflecting a 1.3% decrease in traffic and a 0.6% decrease in average transaction amount.
Still, the retail giant has not abandoned efforts to win back customers. Its most recent move is a bold and exciting bet.
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Target quietly rolls out THC drinks in some of its liquor stores
Target commenced testing the sale of THC beverages at certain Target liquor stores in Minnesota, CBS News first confirmed.
“At Target, we’re always exploring new ways to meet our guests’ evolving preferences and needs,” a spokesperson said.
While Target is not the first retailer to include THC-infused drinks in its offering, it is definitely the first retailer of its size to enter the space. Target is one of the biggest retailers in the United States, serving more than 30 million customers across 1,989 of its stores.
Target’s involvement in cannabis, which national chains have largely avoided, marks a huge milestone for the industry.
Large retailers that sell THC products include:
- Total Wine & More
- Veterans of Foreign Wars (VFW)
- Circle-K
Target is offering THC beverages in its liquor stores that are located within Target stores and have their own entrance. Consumers must be 21 or older to purchase the beverages, and the THC content is capped at 5 milligrams per serving.
Target’s THC beverage sales are huge milestone for cannabis industry
It’s “the first step to getting broad adoption of THC-infused drinks,” Jake Bullock, CEO of Cann, a THC beverage company, told Bloomberg. Cann’s drinks are now being sold in some stores across Minneapolis.
Diana Eberlein, chair of Coalition for Adult Beverage Alternatives, said Target’s embrace of the industry “really normalizes the THC beverage category. This signals to other groups that this category is here to stay.”
The total potential THC beverage market is valued at between $9.9 billion and $14.9 billion, according to Whitney Economics, a global leader in cannabis and hemp business consulting, data and economic research.
In 2024, legal sales reached around $1 billion, suggesting a potential huge upside in this market.
Cannabis popularity has grown over the past few years, as more states have “embraced the green” by legalizing either recreational or medical use, or both. The industry is working hard to normalize cannabis use and break the stigma that surrounds it.
This effort is slowly succeeding, just as Americans are cutting back on alcohol consumption. According to an August Gallup survey, the percentage of adults who report drinking alcohol dropped to 54%, the lowest level since 1939.
While an increasing number of studies confirm the benefits of medical marijuana, especially for children with severe forms of epilepsy and other conditions, recreational use remains less widely accepted and is still debated among medical experts.
Regarding cannabis and epilepsy, there’s even an FDA-authorized CBD medicine, Epidiolex, for the treatment of children with rare and serious forms of epilepsy. The medicine was first approved for treatment of seizures connected to Lennox-Gastaut syndrome and Dravet syndrome.
TheFDA later approved Epidiolex for managing seizures related to tuberous sclerosis complex.
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However, recreational adult cannabis use is something quite different. Some doctors support recreational use, while others still caution about potential negative side effects.
CBS News medical contributor Dr. Céline Gounder cautioned that cannabis can “trigger anxiety, paranoia, elevated heart rate and, in rare cases, psychosis.”
“People may have trouble remembering new information, paying attention or moving smoothly,” she said. “This can slow reaction time, cause slurred speech, and raise the risk of car crashes by 30%-40%. The effects depend on how much cannabis is used, how it’s taken, and how used to it someone is.”
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According to a September report from Whitney Economics, “THC beverages are legal in 28 states, legal but restricted in another nine, can only be sold in marijuana stores in seven, and are completely illegal in six states.”
However, the legal landscape around cannabis is constantly changing, making Target’s bet a tricky one.
Many consumers not eager to return to Target
A review of discussion on social media reveals the impact of Target’s bold move on consumers. Several threads on Reddit addressed the news, but the overall sentiment seemed to lack enthusiasm.
Many users commented on how they still won’t go to Target, suggesting they are among consumers who boycotted the retailer. A number of comments specifically expressed frustration with the retailer over its DEI policies.
Related: 76-year-old grocer closes stores amid struggles, shoppers frustrated
User SomeLostGirl wrote: “Cool, Target is still dead to me until they reinstate their DEI practices and bring back anti-discrimination.”
K0cksuck3r69 suggests that Target’s move aims to attract a lot of lost customers: “Target must really be feeling the boycotts, most of the people I know have seriously reduced or stoping going to target.”
Other users echoed the above statements saying that Target must be “desperate” for business, adding they have no plans to ever shop there.
While overall sentiment on these threads shows limited enthusiasm for returning to Target, the comments represent only a portion of customers — those who take the time to comment on the news and are part of the Reddit community.
Only time will tell how consumers react in the real world and, if laws don’t change, whether the pilot program becomes permanent.
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