Retailers Divided by DEI

While such high-profile retailers such as Walmart and Target drop their DEI initiatives, others are resisting that pressure, reports CNBC. That rollback in initiatives to boost representation of people of color, women and LGBTQ+ people, stems from political backlash and pressure from conservative activists.

The trend also got a boost last month, after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as “dangerous, demeaning, and immoral race- and sex-based preferences.”

For retailers, backing off such efforts may reduce their exposure to diversity-related lawsuits, but it also makes it harder for Black- and other minority-owned brands to find shelf space in such stores, CNBC noted. But not all retailers are pulling back, the news service notes, with companies like Sephora, Costco and E.l.f. Beauty stressing the importance of carrying products that reflect the diversity of their customers.

Ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI. Not only could companies face boycotts, they could also miss out on fresher items and brands that help them stand apart from competitors.

Artemis Patrick, president and CEO of Sephora North America, seconds that sentiment. “Our business is really good and the fact that we’ve been really focused on diversifying our assortment, I think there’s a strong correlation,” Patrick told CNBC.

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