Target Is Latest Retailer Rolling Back Its DEI Initiatives
Target Corp. is starting its new fiscal year by taking a step back on its diversity, equity and inclusion (DEI) initiatives. The retailer announced on Friday that it is concluding its three-year DEI goals and its Racial Equity Action and Change (REACH) initiatives, and will also stop all external diversity-focused surveys, including the Human Rights Campaign’s Corporate Equality Index.
Additionally, Minneapolis-based Target says it will ensure its employee resource groups are focused on development and mentorship, while also evaluating its corporate partnerships to ensure they are directly connected to its roadmap for growth. Target’s “Supplier Diversity” team will now be known as “Supplier Engagement,” which the retailer says will “better reflect our inclusive global procurement process across a broad range of suppliers, including increasing our focus on small businesses.”
“Throughout 2025, we’ll be accelerating action in key areas and implementing changes with the goal of driving growth and staying in step with the evolving external landscape,” the company stated. “We will continue to monitor and adjust as needed.”
In a memo to associates, Kiera Fernandez, chief community impact and equity officer at Target, said many years of data, insights, listening and learning shaped this next chapter in the company’s strategy.
“And as a retailer that serves millions of consumers every day, we understand the importance of staying in step with the evolving external landscape, now and in the future — all in service of driving Target’s growth and winning together,” she said in the memo, which was viewed by CNBC.
Following Target’s move, Twin Cities Pride shared on Facebook that it is cutting its long-standing ties with the retailer, both as a participant and sponsor in its annual festivities. “We want to ensure all of our community that Target will NOT have a presence at the festival or parade,” the organization said.
In a similar move at the end of November, Walmart announced that it will no longer consider race and gender to boost diversity when granting supplier contracts. It will also stop collecting demographic data when assessing financing eligibility.
Walmart is also scaling back racial equity training, no longer participating in rankings by an LGBTQ advocacy group, and reviewing its support for Pride and other events. In addition, the retailer will not renew a five-year commitment for an equity racial center set up in 2020 after the police killing of George Floyd.
Target and Walmart joined a growing list of businesses stepping away from DEI programs targeted by conservative groups. Other brands scaling down or dropping their DEI efforts include Meta, Amazon, Molson Coors, Tractor Supply, Caterpillar, John Deere, Lowe’s, Ford, Toyota and Harley-Davidson.
During his first week in office, President Donald Trump signed an executive order ending DEI programs in federal agencies.
Costco Wholesale, on the other hand, revealed last week that its shareholders rejected a proposal urging the company to evaluate risks posed by its DEI practices. More than 98% of shareholders voted against the proposal during their annual meeting on Jan. 23.
The National Center for Public Policy Research, a conservative think tank based in Washington, D.C., had submitted the proposal, arguing that Costco’s DEI initiatives hold “litigation, reputational and financial risks to the company, and therefore financial risks to shareholders.”
According to Costco’s board, the proposed report would not provide “meaningful additional information” to shareholders, and the company believes that its current DEI efforts actually enhance the company’s capacity to attract and retain employees who inevitably help its business succeed.
Minneapolis-based Target Corp. is No. 7 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America, with nearly 2,000 locations. Walmart U.S. is No. 1 on The PG 100, while Costco is No. 3. PG also included all three companies on its Retailers of the Century list.
