Key Takeaways:
Teacher pension funds hold 6.79 million Target shares as the AFT urges 1.8 million members to boycott the retailer over ICE operations in Minnesota.
"Target is OUT this back-to-school season," Randi Weingarten, president of the American Federation of Teachers, said on Facebook this week.
The union's February resolution directs members to shop elsewhere and plans to expand the campaign to parents, communities and the AFL-CIO's roughly 15 million members. The New York City Teachers' Retirement System alone reported about $16.4 million directly invested in Target as of June 30, 2025. Teachers spend an average of $895 a year out of pocket on school supplies, totaling about $3.4 billion nationwide.
The boycott targets a company in which the union's members hold billions in direct and indirect exposure through index funds. Historical boycotts show the financial stakes: Target's second-quarter sales fell more than 5 percent in 2023 during a Pride merchandise backlash, and Anheuser-Busch InBev's US revenue dropped 13.5 percent in the third quarter of 2023 after a Bud Light marketing controversy. Research from Northwestern University's Kellogg School found targeted companies' share prices fell nearly 1 percent for each day a boycott received national print-media attention.
The AFT acknowledged the ownership overlap in its letter to Target, stating that pension funds in which its members participate directly own 6.79 million shares. Union leaders understand the investment process: teacher trustees on retirement boards have close ties to the United Federation of Teachers, AFT's New York affiliate.
Sara Albrecht, CEO of the Liberty Justice Center, a public-interest law firm, wrote in a Wall Street Journal op-ed that the boycott creates a fundamental conflict for union members. "An individual shareholder may decide not to shop at a company he owns," Albrecht wrote. "But a union that claims to represent members' economic interests should have to cite a specific and compelling interest for why it is organizing economic pressure against a company owned in part by its members."
The campaign tests whether unions can use consumer boycotts as leverage against corporate political positions while members' retirement savings remain tied to the targeted companies. The boycott's financial impact on Target remains uncertain, but the campaign could pressure the retailer's shares during the back-to-school shopping season. Investors will watch whether the AFL-CIO's 15 million members join the boycott and how Target responds to the union's demand for a public stance on ICE operations.
This article is for informational purposes only and does not constitute investment advice.
