Several U.S. retailers that publicly scrapped diversity, equity and inclusion programs – including Target, Amazon, and Tractor Supply – are maintaining certain efforts behind the scenes.
Reuters
The three retailers, while they’ve ended DEI programs on paper, have told advocacy groups and individuals they will continue to offer financial support for some LGBTQ+ Pride and racial justice events, as well as provide internal support for resource groups for underrepresented employees.
These contradictions between public remarks to investors and those made to individuals or small groups illustrate the tightrope they’ve walked since U.S. President Donald Trumpdeemed some elements of DEI illegal and threatened possible investigations into firms that practice it. Advocates say DEI programs aren’t exclusionary policies, but are needed to redress longstanding bias, inequity and discrimination, while detractors counter people should be hired solely on merit without taking into consideration gender or race.
Companies are “trying to thread the needle – stay true to corporate values, satisfy various stakeholders, but reduce legal risk,” said Jason C. Schwartz, an employment law partner at Gibson Dunn who advises corporate clients on their DEI policies.
Reuters conducted more than a dozen interviews with company employees, advocates for underrepresented groups who’ve met with corporate executives, and consultants advising companies on DEI issues for this story. The developments they described haven’t been previously reported.
Tractor Supply, which sells home and garden supplies and clothing to farmers and ranchers, in June ended a DEI program that had aimed to help put people of color in management roles and boost funding to education programs for Black Americans.
It also ceased gathering data on its workforce for the Human Rights Campaign’s annual Corporate Equality Index, a benchmarking tool that rates American businesses on their treatment of LGBTQ+ workers and customers. A Tractor Supply spokesperson told Reuters it “remained steadfast” in its “purposeful decision to remove perceived political and social agendas” from its business.
But Keayana Robinson, the contractor who led the diversity data collection at Tractor Supply, told Reuters the retailer offered to keep her on in an undefined role that would be “as closely aligned as possible” to the DEI work she had been doing.
Managers assured her that Tractor Supply’s inclusivity initiatives – particularly its resource groups for underrepresented employees – would continue, Robinson said.
“I don’t want to work for an organization that wants to hide me,” she said.
Tractor Supply declined to comment on Robinson’s account of its conversations with her.
Target in January ended its participation in the HRC survey, and scrapped a DEI program that included a goal to increase the number of Black employees by 20% over three years. A Target spokesperson said the new approach “is all about driving business results by increasing relevance with U.S. consumers and making Target a destination for talent.”
After Target rolled back its DEI program, Sharon Smith-Akinsanya, CEO of corporate consultancy Rae Mackenzie Group in Minneapolis, said she met with Target executives, including CEO Brian Cornell. Target has long been a sponsor of her career events in Minnesota for people of color, as well as an event she organized honoring Black women of Minneapolis.
She said the meetings reassured her that Target would keep a commitment to diversity. “I believe the Target DNA we have come to love remains intact,” Smith-Akinsanya said, adding that she understands the political threats companies are facing.
For some, the retailers’ private pledges or actions to continue to support diversity and minority groups don’t go far enough.
Twin Cities Pride Executive Director Andi Otto said representatives of Minneapolis-based Target called him to make assurances that their inclusivity efforts would not change, despite the “changing and current climate” of anti-DEI sentiment. But his organization turned down a $50,000 sponsorship from Target this year after nearly two decades of partnering with the chain because of their changes in DEI coupled with the company removing some Pride Month products in 2023.
Twin Cities Pride did not accept a sponsorship from Target this year because the company would not specify how it would continue to support LGBTQ+ shoppers and employees to the organization’s satisfactions, Otto said, calling Target’s move away from DEI “problematic.”
Turning down Target’s money is a form of protest, a move that he says sends a message to Target that it can’t have it both ways.
Similarly, when Black business leader Sheletta Brundidge learned Amazon had rolled back some DEI programs, she dropped the online retailer as a $10,000 sponsor of her annual Black Entrepreneurs Day held at the Minnesota State Capitol. A company representative tried to downplay the changes during a subsequent phone call, according to Brundidge, but it did not change her mind.
“We’ve been working to build a diverse team for many years and are committed to continuing on that path,” Amazon spokesperson Kelly Nantel said. “You’ll see us continue to inspect and evolve our programs to help us do this really difficult work well.” Amazon did not comment on Brundidge’s account.
Some companies are keeping DEI programs despite political and legal risk. Investors at Apple voted against proposals to curtail DEI during its shareholder meeting in February. A day later, Trump said in a post on Truth Social that “Apple should get rid of DEI rules.”
Apple did not immediately respond to requests for comment, but the company’s website says it is continuing to “create a culture of inclusion, belonging, and collaboration where everyone can do their best work.”
Costco Wholesale shareholders in January voted down a proposal to curb its DEI initiatives. A week later, 19 Republican attorneys general demanded Costco notify the states within 30 days whether it will repeal its DEI policies or provide an explanation for maintaining them. Costco did not immediately return a message seeking comment.
But the list of companies removing DEI programs in recent months has expanded to include Paramount, Walmart, Lowe’s, PepsiCo, McDonald’s, John Deere and others. Walmart, PepsiCo, Paramount and McDonald’s confirmed changing their DEI programs, while other companies did not immediately comment.
Lawyers say that, as executives calculate which programs to eliminate and which to keep, they’re considering both legal and political risks.
Although U.S. Attorney General Pam Bondi on Feb. 5 threatened to criminally prosecute companies with “illegal DEI” programs that exclude individuals based on race or sex, she did not explicitly define “illegal,” lawyers say. In a memo, she said her mandate does not prohibit “educational, cultural, or historical observances … that celebrate diversity,” like Black History Month.
Black Women Talk Tech co-founder Regina Gwynn said it is seeing continued support from some companies that sponsor its events for Black women founders and tech workers. But some sponsors requested to have their names left off marketing materials out of fear of political and legal retribution, she said.
The programs most often retained, Gibson Dunn’s Schwartz said, are the ones tied to relationships with customers and employees: sponsorships of events benefiting underrepresented groups, employee groups that create a sense of community at work, and cultural events like Black History Month.
“Companies are essentially picking their battles,” he said, “or trying to avoid battles altogether.”
Gap Inc. soared after strong quarterly sales showed that Chief Executive Officer Richard Dickson’s turnaround playbook is working.
Gap x Cult Gaia
The retailer exceeded analyst estimates for comparable sales, led by better-than-expected results at the namesake brand, Old Navy and Banana Republic. Athleta, the struggling athleisure brand, posted an unexpected decline.
Gap shares surged 17% in trading before US markets opened on Friday. The stock had fallen 18% this year through Thursday’s close.
The performance of Gap’s namesake brand was “particularly impressive,” Paul Lejuez, an analyst for Citi wrote in a research note. The unit’s comparable sales rose 7%, topping Wall Street’s prediction for an average gain of 1.7%. This performance suggests it’s resonating with consumers, he said.
Under Dickson, the company has leaned into celebrity partnerships and is refreshing its leadership roster, including appointing fashion designer Zac Posen as creative director.
Gap sees revenue flat to up slightly in the current quarter. Analysts surveyed by Bloomberg were looking for 1% growth, on average. For the full year, Gap forecasts revenue will be up as much as 2%.
The retailer included 20% tariffs on China and 25% tariffs on Canada and Mexico in its forecast. Less than 10% of Gap products are sourced from China and less than 1% are from Canada and Mexico combined, Dickson said in an interview with Bloomberg News.
“It’s important to note we’ve been operating in a highly dynamic backdrop for the last few years, and we’re expecting the same for 2025,” Dickson said.
Europe’s new tech rule aims to keep digital markets open and is not targeted at U.S. tech giants, EU antitrust and tech chiefs told U.S. congressmen, reminding them that U.S. enforcers have in recent years also cracked down on these companies.
Reuters
The comments by EU antitrust chief Teresa Ribera and EU tech chief Henna Virkkunnen came after U.S. House Judiciary Chair Jim Jordan and Scott Fitzgerald, chairman of the subcommittee on the administrative state, regulatory reform and antitrust demanded clarifications on the Digital Markets Act (DMA).
“The DMA does not target U.S. companies,” Ribera and Virkkunnen wrote in a joint letter dated March 6 to Jordan and Fitzgerald seen by Reuters.
“It applies to all companies which fulfil the clearly defined criteria for being designated as a gatekeeper in the European Union irrespective of where they are headquartered,” they said. Ribera and Virkkunnen also dismissed criticism that the DMA hinders innovation.
“By preventing gatekeepers from engaging in unfair practices vis-à-vis smaller companies, the DMA keeps the door open to the next wave of innovation in vital digital markets,” they said.
They pointed to similar concerns of unfair practices that led to U.S. antitrust investigations and lawsuits filed under the first Trump administration and other recent actions against Alphabet’s Google, Amazon, Apple and Meta Platforms.
Ribera and Virkkunnen also rejected claims that EU antitrust fines are a form of European tax on American companies. U.S. President Donald Trump in a memorandum last month threatened to impose tariffs against countries which impose fines on U.S. companies.
“The objective of DMA enforcement, as in any other piece of EU law, is to ensure compliance – not to issue fines. Possible sanctions, also common to U.S. laws and regulations, are not an end in themselves but a prerequisite for credible engagement,” they said.
Three storied brands chronologically staged very disparate shows in Paris on Sunday – Akris, Valentino and Balenciaga. Their extreme differences an expression of the richness of the world’s most important runway season.
Akris: Clothes for brainy girls
If one really wants to know what the world’s lady decision makers are going to wear next winter, then an ideal place to start is at an Akris runway show.
Though the biggest advance was in a new series of rather remarkable materials: classy high-ridge corduroy seen in great coats and or coat dresses in impeccable wool blends.
Albert Kriemler’s big idea was expressed by the word Cyan, a Greek word denoting a certain hue of blue. But, in the end, working with an array of blues – indigo, cobalt, azure, lapis, admiral and, of course midnight – often flattered by the accessories, feathers trimming pumps, handbags or earrings.
Few brands create a more complete wardrobe than Akris. Perfectly polished suits to host board meetings or sign treaties; elegant grenadier cut parkas or denim dusters for weekend strolls.
Arty cocktails for art openings; or grand gowns for the Vienna State Opera or the Met in New York.
This season, Albert teamed up artist Alyson Shotz, and the resulting spiral and smoky prints were used cunningly in gallery owners’ sheathes or dramatic coats.
All working together in a hyper-synched show staged flawlessly inside the remarkable medieval church College des Bernardins – just across the Seine from Notre Dame. Winning the self-confident but rather shy Albert one of the greatest ovations of his storied career.
Working with a new DJ Terence Fixmer to create a soundtrack that managed to be ethereal and industrial at the same time. Known for spinning inside Berlin’s dark and crazy nightclub Berghain, where parties can last three days. Leading one to ask the great intellect of Mittel European fashion, Albert, had he gone clubbing there himself?
A question which was met with an open mouth, a swallow and a faintly little boy shrug, but not a yes or no. Suggesting Kriemler was not unfamiliar with the dark side of Berlin.
Valentino: Gray Gardens in a Berlin nightclub toilet
At times watching this latest collection by Alessandro Michele one found oneself asking whether Michele had signed to work for Valentino, or had Valentino signed to work for Michele, or so self-indulgent was the whole event.
Guests were invited into a large, sweaty black box along the Seine, to find themselves surrounded by some 70 toilet cubicles, everything inside the tent painted in founder Valentino Garavani’s sinful red. Pre-show, Michele’s old buddy Jared Leto and various K-pop stars took turns preening in front of cheap bathroom mirrors, again bathed in red fluorescent light.
Eventually, the show began as the cast took turns exiting their red cubicles to a thunderous soundtrack. After that, it was the case of the usual Michele suspects. Though, thankfully, Alessandro is a sufficiently inventive designer so the combinations looked fresh.
Opening with crisp pant suits; or peak shoulder skirt suits with three-inch fur trim. But, since we were in a loo, adding a good transgressive dollop. Starring gals in knickers and leotards undone at the crotch; some in satin bow bustiers and jeans; and others in long flowing silk skirts topped by full sheer mesh tops.
The cast done up with pale, goth makeup, endless Edie Bouvier Beale headbands and sunglasses. Not what most ladies wear inside public toilets, especially in Berlin, or Ibiza.
The show did have some kicky clothes – beautifully draped silk ribbon cocktails; silver ruffled lace frocks and snakeskin print knit dresses. And for guys, debonair blazers; or disco dragoon double-breasted jackets worn with red silk hunting shirts; and one fabulous funnel neck dressing gown/coat in beige cashmere.
No one could ever accuse Alessandro of not having a fertile imagination. Though quite why he chose checkered flag sneakers, the sort of finds in discount bins on 14th street, was hard to fathom.
The show ending with thunderous music, a blend of classic and industrial including a remix of “Ailanthus” by Julia Kent. A bombastic show, but not a brilliant one.
Balenciaga: pure and unadulterated
Those who love their fashion to be dark, tough, after-hours and frequently all-weather chic should not have missed the latest show of Balenciaga by designer Demna.
The bare necessities of a show this season, with a narrow, claustrophobic catwalk with 20-foot high curtains on either side. Everything element of the show set done in black.
A loud public warning by an MC to take our seats and one minute of “Moonlight Sonata” by Dr. Death + Mr. Vile, before we plunged into Demna’s singular world.
Opening with simple basics: a guy in a black suit and tie who could have passed for show security. A lad in dark pants and down vest that might have been from Uniqlo. Then the action kicked off with Demna daguerreotypes: a hyper cool matelassé padded bustier jacket, for guys and girls; a rock god leather redingote; a ribbed knit for guys that reached the knee.
Lots of returning refugee style, with guys in torn tank tops; outback rider boots and denim jackets with fur hoods so large the whole face was hidden.
In the end, this was a statement show, by a gentleman who was a refugee from Sokhumi, the capital of the Georgian province of Abkhazia, a breakaway bandit state foisted on the local population by Putin.
Refugee chic is not just a trendy style statement. It is an indication in a runway show of the dangerously possible price that Eastern Europe could pay for Donald Trump’s embrace of the totalitarian leader of Russia.