Diversity, equity and inclusion under strain across global retail sector: IADS

Long regarded as a core pillar of corporate strategy, DE&I (diversity, equity and inclusion) is now going through a turbulent period. Under intensifying political, economic and social pressures, it has reached a pivotal moment. The sixth White Paper from the International Association of Department Stores (IADS) examines whether inclusion remains a fundamental priority or risks being pushed into the background.

The 2025 edition looks at DE&I at a time when commitments are being put to the test. The year 2024 saw heightened scrutiny of inclusion programmes. In January 2025, the signing of a controversial US presidential executive order entitled “Ending Radical and Costly Government Diversity, Equity and Inclusion Programs and Preferences” prompted immediate reactions from major North American companies fearing legal reprisals, according to IADS.

The myth that inclusion penalises businesses

The 2025 report draws on a set of concrete observations from an analysis of the practices of leading retailers worldwide. It highlights four dimensions in which DE&I, when embedded in day-to-day operations, serves as a measurable driver of performance. Firstly, organisations with diverse leadership teams report stronger decision-making and greater strategic agility.

Secondly, companies that value inclusion see improved employee retention, thereby reducing turnover costs in a historically volatile sector. Thirdly, inclusion fosters more effective communication within teams, which reduces operational errors and strengthens cohesion.

DE&I is a legacy of civil rights struggles

Finally, retailers note that some of the most relevant ideas come directly from frontline teams who, thanks to their diverse experiences, contribute significantly to innovation and to adapting to varied customer expectations. These findings show that DE&I is not only an ethical value, but also a concrete driver of organisational effectiveness.

The report also notes that DE&I forms part of a longer legacy, rooted in the civil rights movement and in the historic demands of retail frontline teams for fair treatment and safer working conditions. However, contemporary expectations, often unclear or poorly defined, have given rise to what some stakeholders describe as “DE&I fatigue”, fuelled by doubts about the sincerity of commitments rather than by clear strategic thinking.

Inclusion, between intention and ‘strategic advantage’

The White Paper further points out that DE&I cannot be one-size-fits-all: priorities vary by region — from gender parity, ethnicity and disability to socio-economic background and national integration — and expectations regarding language and transparency differ considerably. For international groups, tailoring local approaches while upholding universal principles of equity is a major operational challenge.

Finally, IADS sets out the conditions that enable inclusion to take root for the long term: listening to employees, setting clear behavioural expectations, fostering collaboration between stores and headquarters, and ensuring fairness in recruitment and development processes. Beyond intention, these capabilities help retailers turn DE&I into a tangible strategic advantage, strengthening resilience, engagement and relevance in a constantly evolving environment.

Founded in 1928, IADS coordinates exchanges between department stores worldwide and publishes an annual White Paper on a key industry issue. Previous publications have focused on the Covid-19 pandemic, digital transformation, sustainability, retail media and the role of middle management.