Target joins Amazon and Walmart in rolling back diversity programmes
Consultant warns of ‘brand suicide’ as corporates end diversity policies under Trump regime
26 January 2025 - 17:57
bySiddharth Cavale
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Shoppers in a Target store in Chicago, Illinois, the US. Picture: VINCENT ALBAN/REUTERS
Target says it is ending its diversity, equity and inclusion (DEI) programme this year, the latest US corporation to step away from the policies amid scrutiny from conservative groups.
Several big US companies, including Walmart, Amazon and Meta, have rolled back their DEI policies over the past year. Last week, President Donald Trump directed federal agencies to terminate DEI programmes and urged private companies to end “illegal DEI discrimination and preferences”.
But the Minneapolis-based retailer’s decision met with notable criticism. Some critics noted the company’s reputation for inclusiveness has helped it attract a younger, more diverse consumer base.
“For Target, with an inclusive audience, this is their version of brand suicide,” said Eric Schiffer of Los Angeles-based Reputation Management Consultants, which advises US corporates and Hollywood celebrities.
Target also said it was ending its Racial Equity Action and Change initiatives this year, under which it had pledged to invest more than $2bn with black-owned businesses by the end of 2025. The initiative included plans to add more than 500 black-owned brands and a funding programme from its in-house media company, Roundel, to increase exposure of diverse-owned brands through paid media.
The retailer added that it was changing its “supplier diversity” team to “supplier engagement” in a bid to better reflect “its inclusive global procurement process”.
“Target is making a mistake by ending its DEI goals with its customer base being highly diverse,” said Texas congressman Sylvester Turner posted on social media platform X.
DEI programmes, designed to promote opportunities for women, ethnic minorities, LGBTQ+ people and other traditionally underrepresented groups, gained traction after nationwide protests in 2020 over police shootings of unarmed black people.
However, they have been criticised by Trump and conservative groups as being discriminatory against other Americans and for undermining merit in hiring and promotion.
“Many years of data, insights, listening and learning have been shaping this next chapter in our strategy,” Target’s chief community impact and equity officer Kiera Fernandez said in a memo, adding that it was important to stay in step with the “evolving” external landscape. The company did not comment beyond its statement.
Target’s 2023 diversity report shows its workforce comprises 56% female and 43% male employees. The racial and ethnic distribution was similarly balanced: 56% of employees were people of colour and 43% were white.
Target’s stores host LGBTQ-related goods during Pride month, attracting a more diverse customer base than bigger rival Walmart, which announced cuts to some of its DEI initiatives late last year.
However, in 2023, Target pulled some LGBTQ-themed merchandise from stores, citing increased confrontations between shoppers and employees and incidents of products being thrown on the floor.
In 2016, Target said that transgender employees and customers could use bathrooms corresponding to their gender identity, at a time when a heated national debate had sprung up on the issue. It was the first big retailer to address the matter.
At a retail conference in New York this month, Target’s CEO Brian Cornell said the company’s growth over the past years came down to investing in people and creating a culture of care and growth.
On Thursday, Costco Wholesale shareholders voted overwhelmingly against a proposal requesting a report on the risks of maintaining its diversity and inclusion initiatives.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Target joins Amazon and Walmart in rolling back diversity programmes
Consultant warns of ‘brand suicide’ as corporates end diversity policies under Trump regime
Target says it is ending its diversity, equity and inclusion (DEI) programme this year, the latest US corporation to step away from the policies amid scrutiny from conservative groups.
Several big US companies, including Walmart, Amazon and Meta, have rolled back their DEI policies over the past year. Last week, President Donald Trump directed federal agencies to terminate DEI programmes and urged private companies to end “illegal DEI discrimination and preferences”.
But the Minneapolis-based retailer’s decision met with notable criticism. Some critics noted the company’s reputation for inclusiveness has helped it attract a younger, more diverse consumer base.
“For Target, with an inclusive audience, this is their version of brand suicide,” said Eric Schiffer of Los Angeles-based Reputation Management Consultants, which advises US corporates and Hollywood celebrities.
Target also said it was ending its Racial Equity Action and Change initiatives this year, under which it had pledged to invest more than $2bn with black-owned businesses by the end of 2025. The initiative included plans to add more than 500 black-owned brands and a funding programme from its in-house media company, Roundel, to increase exposure of diverse-owned brands through paid media.
The retailer added that it was changing its “supplier diversity” team to “supplier engagement” in a bid to better reflect “its inclusive global procurement process”.
“Target is making a mistake by ending its DEI goals with its customer base being highly diverse,” said Texas congressman Sylvester Turner posted on social media platform X.
DEI programmes, designed to promote opportunities for women, ethnic minorities, LGBTQ+ people and other traditionally underrepresented groups, gained traction after nationwide protests in 2020 over police shootings of unarmed black people.
However, they have been criticised by Trump and conservative groups as being discriminatory against other Americans and for undermining merit in hiring and promotion.
“Many years of data, insights, listening and learning have been shaping this next chapter in our strategy,” Target’s chief community impact and equity officer Kiera Fernandez said in a memo, adding that it was important to stay in step with the “evolving” external landscape. The company did not comment beyond its statement.
Target’s 2023 diversity report shows its workforce comprises 56% female and 43% male employees. The racial and ethnic distribution was similarly balanced: 56% of employees were people of colour and 43% were white.
Target’s stores host LGBTQ-related goods during Pride month, attracting a more diverse customer base than bigger rival Walmart, which announced cuts to some of its DEI initiatives late last year.
However, in 2023, Target pulled some LGBTQ-themed merchandise from stores, citing increased confrontations between shoppers and employees and incidents of products being thrown on the floor.
In 2016, Target said that transgender employees and customers could use bathrooms corresponding to their gender identity, at a time when a heated national debate had sprung up on the issue. It was the first big retailer to address the matter.
At a retail conference in New York this month, Target’s CEO Brian Cornell said the company’s growth over the past years came down to investing in people and creating a culture of care and growth.
On Thursday, Costco Wholesale shareholders voted overwhelmingly against a proposal requesting a report on the risks of maintaining its diversity and inclusion initiatives.
Reuters
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