Target is ending its diversity, equity and inclusion program this year, the retailer said on Friday, the latest U.S. corporation to step away from such policies in the face of severe scrutiny from conservative groups.
Reuters
Over the last year, several major companies, including Walmart, Amazon and Meta have rolled back their DEI policies, and earlier this week, President Donald Trump directing federal agencies to terminate DEI programs and urged private companies to end “illegal DEI discrimination and preferences.”
But the Minneapolis-based retailer’s decision met with notable criticism, with some noting 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 U.S. corporates and Hollywood celebrities.
Target also said it was ending its Racial Equity Action and Change (REACH) initiatives this year, under which it had pledged to invest over $2 billion with Black-owned businesses by the end of 2025. The initiative included plans to add more than 500 Black-owned brands and a funding program 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 Sylvester Turner, Congressman for Texas’ 18th Congressional District, on X.
DEI programs, 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 criticized 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 outside of its statement.
According to Target’s 2023 workforce diversity report, the retailer’s workforce comprised 56% female employees and 43% male employees. The racial and ethnic distribution was similarly balanced, with 56% of employees being people of color and 43% being white.
Target’s stores host LGBTQ-related goods during Pride month, attracting a more diverse customer base than bigger rival Walmart, opens new tab, 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.
Zalando has announced Iamisigo, a Nigerian-founded brand, as winner of its Visionary Award 2025 “for its boundary-pushing exploration of artisanal craftsmanship and pioneering textile innovation”.
As well as the €50,000 prize, the label will present its collection on the runway at Copenhagen Fashion Week SS26 in August “with Zalando’s continued support through financial assistance for the show production, facilitating mentorship opportunities and tailored industry connections”.
The company said the award reflects its “commitment to supporting emerging designers who challenge conventions and inspire progress in the fashion industry”.
The brand blends heritage textiles with traditional craft techniques drawn from across Africa. It was founded by Bubu Ogisi and offers “contemporary designs with a bold, fresh perspective”.
At an exhibition at Copenhagen Fashion Week AW25 this week, the award finalists introduced their brands, presented their visions and ethos through a showcase of their hero pieces and a panel talk, hosted by Zalando.
We’re told the jury chose Iamisigo “for its dedication to blending ethical sourcing with a commitment to empowering local communities. The brand’s distinct voice, visionary and magical aesthetic challenge conventions, offering a new perspective on what it means to drive positive change in fashion; transcending gender norms, designing for spirits and energies”.
The jury also said that Bubu Ogisi “embodies the essence of a visionary in many ways, and that she is a rare creative talent working in this space today, with a brand whose output is both beautiful and miraculous”.
Deckers Outdoor on Thursday beat third-quarter sales estimates on robust holiday demand for its Hoka running shoes, but an in-line annual forecast caused the footwear maker’s shares to tumble 17% in extended trading.
Ugg
Hoka shoes with their oversized soles have been gaining market share from brands such as Nike in the sportswear category. The brand, which retails for up to $300 in the United States, have also enjoyed full-price sales.
This drove up the company’s third-quarter revenue by 17% to $1.83 billion, beating analysts’ average estimate of $1.73 billion, according to data compiled by LSEG. Deckers also raised its annual net sales forecast for a second time this year.
“The guidance looks pretty conservative and considering the beat, it’s bit of a negative read into the out quarter,” said Drake MacFarlane, analyst at MScience.
The popularity of the Hoka shoes and the success of the company’s Ugg boots and sandals has helped it post double-digit revenue growth for nearly seven quarters.
The company now expects annual net sales to increase about 15% to $4.9 billion, compared with its prior expectation of about 12% growth to $4.8 billion. Analysts estimated an increase of 14.9% to $4.93 billion.
Deckers expects annual earnings per share of $5.75 to $5.80, compared with its prior forecast of $5.15 to $5.25.
Amazon.com is increasing its advertising on billionaire Elon Musk’s social media platform X, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Reuters
The major shift comes after the e-commerce giant withdrew much of its advertising from the platform more than a year ago due to concerns over hate speech.
In 2023, Apple also pulled all of its advertising from X and has recently been in discussions about testing ads on the platform, the report said.
Several ad agencies, tech and media companies had also suspended advertising on X following Musk’s endorsement of an antisemitic post that falsely accused members of the Jewish community of inciting hatred against white people.
Monthly U.S. ad revenue at social media platform X has declined by at least 55% year-over-year each month since Musk bought the company, formerly known as Twitter, in October 2022. He had acknowledged that an extended boycott by advertisers could bankrupt X.
Musk has become one of the most influential figures following President Donald Trump‘s re-election. He now leads the Department of Government Efficiency, which aims to cut $2 trillion in government spending.
Entertainment8 years ago