It’s been a year of struggle for many retailers, but perhaps even more so for Target ( TGT ).
Challenges that Target has shared with other retailers include a harsh economic climate, changes in customer behavior, high labor costs, inflation and aggressive competition.
However, in 2025 Target faced unique obstacles and has been fighting to turn things around ever since. One stumbling block for the giant retailer has been consumer backlash over its handling of DEI initiatives and Pride products.
In January, Target “ignited a firestorm when it boldly decided to scale back its diversity, equity and inclusion (DEI) policies,” writes Patricia Battle for TheStreet.
DEI’s policy aims to increase opportunities in the workplace for people of diverse backgrounds, and Target has scaled back those initiatives, including its participation in a Human Rights Campaign study tracking LGBTQ+ company policies and practices.
The decision backfired, and Target faced several boycott threats from frustrated consumers. Its sales were down and store traffic was down.
Based on the company’s 2025 2Q10 filing, its net sales fell 0.9% year-over-year to $25.2 billion. At the same time, comparable sales fell 1.9%, reflecting a 1.3% decline in traffic and a 0.6% decline in average transaction value.
However, the retail giant has not given up on its efforts to win back customers. His latest move is a bold and exciting bet.
Some Target liquor stores offer THC-infused drinks. Dasha Petrenko/Shutterstock.com
Target has begun testing sales of THC drinks at select Target liquor stores in Minnesota, CBS News first confirmed.
At Target, we’re always looking for new ways to meet the changing preferences and needs of our guests,” said a spokesperson.
While Target isn’t the first retailer to add THC-infused beverages to its lineup, it’s certainly the first retailer of its size to enter the space. Target is one of the largest retailers in the United States, serving more than 30 million people. customers in 1,989 stores.
Target’s entry into cannabis, which national chains have largely avoided, is a huge milestone for the industry.
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Target offers THC beverages at its liquor stores located inside Target stores and with separate entrances. Users must be 21 or older to purchase the drinks, and the THC content is 5 milligrams per serving.
It’s “the first step toward widespread adoption of THC beverages,” Jake Bullock, CEO of THC beverage company Cann, told Bloomberg. Cann drinks are now available in select stores in Minneapolis.
Diana Eberlein, president of the Adult Beverage Alternatives Coalition, said Target’s industry embrace “really normalizes the THC beverage category. It shows other groups that this category is here to stay.”
According to Whitney Economics, a global leader in hemp and hemp business consulting, data and economic research, the total potential market for THC beverages is estimated at $9.9 billion to $14.9 billion.
in 2024 legal sales amounted to about 1 billion.
Cannabis has grown in popularity over the past few years as more and more states “go green” by legalizing recreational, medicinal, or both uses. The industry is working hard to normalize the use of cannabis and break the stigma surrounding it.
These efforts are slowly succeeding, just as Americans are reducing their alcohol consumption. The percentage of adults who report drinking alcohol has fallen to 54%, the lowest level since 1939, according to an August Gallup poll.
Although a growing body of research supports the benefits of medical marijuana, especially for children with severe forms of epilepsy and other illnesses, its recreational use remains less recognized and still debated among medical experts.
When it comes to cannabis and epilepsy, there is even an FDA-approved CBD drug, Epidiolex, for the treatment of children with rare and severe forms of epilepsy. This drug was first approved to treat seizures associated with Lennox-Gastaut syndrome and Dravet syndrome.
Later, the FDA approved Epidiolex for the treatment of seizures associated with tuberous sclerosis complex.
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However, recreational cannabis use by adults is quite different. Some doctors support recreational use, while others still warn of possible negative side effects.
CBS News medical contributor Dr. Céline Gounder warned that cannabis can “cause anxiety, paranoia, increased heart rate and, in rare cases, psychosis”.
“People may have trouble remembering new information, paying attention or moving smoothly,” she said. “It can slow reaction times, cause slurred speech and increase the risk of car crashes by 30-40%. The effects depend on how much cannabis is used, how it is used and how well someone is used to it.”
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According to a September report by Whitney Economics, “THC drinks are legal in 28 states, legal but restricted in nine others, can be sold in marijuana stores in only seven states, and are completely illegal in six states.”
But the legal landscape around cannabis is constantly changing, making Target’s bet a complicated one.
An overview of the social media debate reveals the impact Target’s bold move is having on consumers. Several Reddit threads were dedicated to the news, but the overall mood seemed to lack enthusiasm.
Many consumers commented how they wouldn’t be at Target anyway, saying they were among the consumers who boycotted the retailer. Many comments specifically expressed frustration with the retailer for its DEI policy.
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User SomeLostGirl wrote: “Cool, Target is still dead to me until they reinstate their DEI practices and bring back anti-discrimination.”
K0cksuck3r69 says Target’s move is aimed at bringing back a lot of lost customers: “Target must be feeling the boycotts because most people I know have cut back or stopped targeting a lot.”
Other users echoed the above, saying Target must be “desperate” for business, adding that they have no plans to ever shop there.
While the overall sentiment in these threads suggests limited enthusiasm for returning to Target, the comments represent only a fraction of the customers — those who take the time to comment on the news and are members of the Reddit community.
Only time will tell how consumers will react in the real world and, if the law doesn’t change, whether the pilot program will become permanent.
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This story was originally reported by TheStreet in 2025. on October 23, where it first appeared in the retail section. Add TheStreet as a preferred source by clicking here.
