Dive Brief:
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Target announced the end of some diversity efforts Friday, citing “the importance of staying in step with the evolving external landscape" while reiterating its commitment to “inclusion” and “belonging,” according to an internal memo from Chief Community Impact and Equity Officer Kiera Fernandez the company shared via email.
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Target is concluding its three-year diversity, equity and inclusion goals and, this year “as planned,” its Racial Equity Action and Change initiatives, the company said in a blog post Friday. The retailer will no longer participate in third-party diversity surveys, including the Human Rights Campaign’s Corporate Equality Index.
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The company said that its “supplier diversity” team has been renamed “supplier engagement,” which better reflects its “inclusive global procurement process across a broad range of suppliers, including increasing our focus on small businesses.”
Dive Insight:
Target was once among the most vocal U.S. companies when it came to diversity, including through its merchandising.
This could be seen in its apparel designed for kids with disabilities, as well as more controversial efforts. Its 2016 policy around gender inclusivity and its 2023 Pride collection provoked backlashes, as did its subsequent decision to pull some Pride displays from stores.
But overall Target’s dedication to DEI, which was once more public than at most retailers, was well received, according to Dave Marcotte, senior vice president at Kantar.
Now, amid efforts to end diversity, equity and inclusion policies across government, academia and the private sector, the retailer is being more discreet about its diversity operations. The business advantages of DEI still exist, just not when it’s out in the open, Marcotte said by email.
“Target’s changes in their DEI strategy is more of a reset,” he said. “In reality, their internal processes still support goals, but the public side is showing a cut off of programs and in-store merchandising.”
Tractor Supply and other retailers in recent months have similarly announced that they will no longer participate in third-party surveys that evaluate diversity efforts.
“With the temperature being what it is, I think we can anticipate more will drop out of 'voluntary' surveys since they can't control them,” Marcotte said.
Tractor Supply in June eliminated its DEI roles and withdrew its carbon-emission goals, but Target is not going that far, according to Fernandez’s memo.
“For more than 20 years, Target has fueled our business by building teams with diverse perspectives and experiences, creating inclusive work and guest environments that welcome all, and developing strategies that represent the U.S. consumers we serve,” she said. “We’ve also deepened our understanding of how building a sense of belonging for every member of our team, guests and communities can help drive our business and strengthen our culture.”
The company’s next iteration of diversity policy will be informed by what it has learned over the years, she also said — and by what could be called political winds.
“As a retailer that serves millions of consumers every day, we understand the importance of staying in step with the evolving external landscape, now and in the future,” Fernandez said.
