Retailers across the US are scrambling to rethink their diversity, equity, and inclusion (DEI) initiatives after a sweeping policy shift from President Donald Trump.
On 21 January 2025, the administration issued an executive order rolling back affirmative action mandates and banning race and gender conscious hiring and contracting in federal agencies and among contractors.
The fallout has been swift, as some companies quietly scale back diversity efforts while others withdraw from DEI commitments entirely.
Retail Gazette North America examines key retailers pulling back from DEI initiatives and what this shift means for the retail industry.
Target
On 24 January 2025, discount retailer Target shared in a company statement that it would be ending its DEI goals and racial equity action and change initiatives.
Additionally, the company will stop externally focused diversity surveys and rebrand its supplier diversity team to supplier engagement.
Kiera Fernandez, Target’s chief community impact and equity officer, said: “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.
“We will continue to monitor and adjust as needed.”
Walmart
Walmart confirmed a decision to reduce its DEI initiatives to AP News and other media outlets.
The discount retailer stated that it would not renew its racial equity center, which was a $100 million philanthropic commitment aimed at helping African American people in various sectors.
The company also plans to end racial equity development programs and stop participation in diversity measuring surveys from the Human Rights Campaign.
Walmart said in a statement: “We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers, and to be a Walmart for everyone.”
Amazon
Ecommerce retailer Amazon is reducing an unspecified number of DEI-focused initiatives, according to a written memo to employees, as reported by Bloomberg.
In December 2024, the company stated that it would be ‘winding down outdated programs and materials’ and expects the changes to be consolidated by the end of 2024.
Candi Castleberry, Amazon’s vice president of inclusive experiences and technology, said: “Rather than have individual groups build programs, we are focusing on programs with proven outcomes, and we also aim to foster a more truly inclusive culture.”
Additionally, Amazon removed the terms diversity and inclusion in its annual 2024 report released in early February 2025.
McDonald’s
A company note from the fast-food chain shared that it had been reevaluating its policies following the changing legal landscape in the US.
As a part of its policy revisions, the company will end external surveys and diversity goals and rename its diversity team to the global inclusion team.
Additionally, the company announced that it would conclude its supply chain’s mandatory commitment to DEI initiatives and focus on inclusion in relation to business performance.
Despite the changes, the company stated that it remains dedicated to inclusivity within the company, with over 30% of McDonald’s US leaders coming from underrepresented groups.
Tractor Supply
Agricultural retailer Tractor Supply announced in a company statement in June 2024 that it would be ending all DEI related roles, surveys and goals, following feedback from its customers.
The company wrote in the statement: “We work hard to live up to our mission and values every day and represent the values of the communities and customers we serve. We have heard from customers that we have disappointed them.
“Going forward, we will ensure our activities and giving tie directly to our business.”
Additionally, it will stop investing in pride festivals and voting campaigns and shift its focus to agricultural education and animal welfare initiatives.
Lowe’s
In August 2024, homeware retailer Lowe’s issued a memo to AP News announcing its decision to scale back its diversity initiatives in response to recent policy changes.
The company’s executive leadership shared that it would be consolidating its diversity groups into one organization.
Additionally, the retailer will end its participation in the Human Rights Campaign’s diversity survey and end participation in non-business activities such as festivals and parades.
Despite the decision to narrow its DEI initiatives, Lowe’s stated that it remains dedicated to serving the people.
The company leadership said: “We may make additional changes over time. What will not change, though, is our commitment to our people.”
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