Retailing giants are facing new pushback following their DEI retreats
Published On Feb 28, 2025, 4:00 AM
Recently, major retailers, including Target (TGT) and Walmart (WMT), are facing backlash after retracting their diversity, equity, and inclusion (DEI) initiatives. Advocacy groups and a notable number of shareholders have expressed their disappointment, indicating potential boycotts and emphasizing the importance of DEI policies for customer loyalty. Foot traffic data reveals a decline in visits to stores like Target and Walmart amid the DEI-related controversies, while competitors like Costco, which maintains its DEI commitment, are experiencing growth in foot traffic.
Stock Forecasts
TGT
Negative
Target and Walmart are feeling the effects of customer pushback following their DEI rollbacks, leading to diminished foot traffic and potential long-term impacts on sales. As consumers increasingly advocate for companies that align with their values, the retailers' future sales growth may be hampered.
WMT
Negative
Given the backlash and declining foot traffic data, as well as strong advocacy from shareholder groups for the continuation of DEI initiatives, Walmart might face ongoing pressure that could negatively impact its sales and brand reputation. With ongoing calls for boycott and consumer sentiment shifting, this raises concerns about future revenue.
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