Target is ending its diversity, equity and inclusion programme along with other equity initiatives, the retailer has said, becoming the latest US firm to pull back these policies, meant to boost racial and ethnic representation in workplaces.
Target said on Friday it was rolling back programmes aimed at promoting racial equity, called the Racial Equity Action and Change (REACH) initiatives, this year.
Earlier this week, President Donald Trump issued a sweeping executive order directing federal agencies to terminate diversity, equity and inclusion (DEI) programmes, encouraging private companies to do the same.
Companies have been focused on the diversity of their workforce for decades, but contemporary DEI initiatives took off after nationwide protests in 2020 over police shootings of unarmed Black people.
Over the last year, however, several major companies, including Walmart, Amazon, and Meta, walked back their DEI policies in the face of public pressure and after the November election victory by Trump, who has long criticised DEI initiatives.
“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.
In 2022, Target pledged it would invest more than $2bn in Black-owned businesses by the end of 2025 as part of its REACH goals.
The initiative also 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”.
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.
The company cited an internal survey to showcase its people-led culture, saying it showed that “seven out of 10 people feel cared for as a person, not as an employee [of Target]”.
“In retail, we have a chance to change lives,” Cornell said at a keynote session at the National Retail Federation Conference.
Late last year, bigger rival Walmart said it was cutting some of its DEI initiatives, too.
In contrast, on Thursday, Costco Wholesale shareholders voted strongly against a proposal requesting a report on the risks of maintaining its diversity and inclusion initiatives.
Minneapolis-based Target has landed in the crosshairs of conservative backlash in the past.
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.
The company has sold LGBTQ-related goods tied to Pride month for years but has faced growing criticism for carrying those products, including from conservative news outlets and Republican politicians, who have claimed certain items at its stores were marketed to children.
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