If you’ve been plugged-in to the political side of the business world lately, you may have noticed a fundamental shift in how corporate culture is responding to DEI measures. DEI, which stands for diversity, equity and inclusion, has been the industry standard blanket term for the last several years regarding certain hiring practices, employee training routines and more. Major companies such as Target, Costco and Apple have utilized specific language upholding DEI in their company guidelines at one point or another, amid a national push to support BIPOC employees, those with disabilities and members of all other marginalized communities. Of course, when Donald Trump regained control of the White House in January, he issued a day-one decree that all companies must remove DEI protections from their charters, sparking a wave of discussion about government overreach and the future of diversity in the workplace.
Some, such as Target, Walmart and Harley Davidson, were quick to discard any and all DEI measures from their corporate guidelines. Others, such as Costco, Apple and Microsoft chose to fight against Trump’s anti-DEI rhetoric, by upholding their initial pledge to support and include marginalized employees in their workplace culture. In the 13 weeks since these changes have gone into effect, Costco and Target have become something of a corporate litmus test for the effects of these policies, with certain political activists calling for boycotts along partisan lines. Since we now have a comprehensive dataset regarding the two entities, now seems like as good a time as any to explore Costco and Target’s DEI policies over the years, and see how their DEI support – or lack thereof – has impacted their respective bottom line.
Costco’s DEI Stance Over The Years
Though many companies have adopted the language of diversity, equity and inclusion over the years, Costco has been a pioneer in these practices since its formation. During a recent interview with Fox News, Costco’s former Senior Vice President Roger Campbell explained that DEI has been integral to the company’s success for decades. “The term DEI didn’t even exist to us, it was the way we ran our business… it’s who we are,” he explained, “Our whole idea was taking care of the employee. Our whole idea was a very simple thing – if you hire good people, pay them good wages and give them good benefits, then likely good things are going to happen.” Campbell was himself a beneficiary of inclusion, since he began work as a manager trainee in 1986, before rising through the corporate ranks to earn his VP position.
Campbell retired from Costco in 2015, though he maintains that the company has upheld a firm balance of diversity, equity and inclusion both through his entire tenure, and in the years since he stepped down. While describing his own hiring and promotion practices within the wholesale grocery club, he stated, “If I absolutely was looking at a promotion, and there were two people where either one of those two could do this job, I think, internally, there could be a couple times where I said, ‘You know what, I need to give this diverse person an opportunity instead of holding them back.'” He went on to argue that similar companies have shifted their DEI policies, “because they never had one to start with,” lambasting his competitors for following political trends.
Though Campbell hasn’t been with the company in nearly a decade, his words certainly seem to ring true for current management. Recent research from the National Center for Public Policy indicated that at least 200,000 of Costco’s 300,000 employees worldwide are potential victims of illegal discrimination, despite the fact that a majority of Costco shoppers within the United States are white men. The grocery giant’s board of directors also unanimously voted to reject a motion to end DEI measures back in January. Per a statement in the Associated Press, Costco’s board argued, “Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this [anti-DEI] proposal would not provide meaningful additional information.”
Target’s History With DEI
If Costco is widely considered to be the DEI trendsetter, Target may be looked at as the fashionably late fad-chaser. The department store drew ire from Black shoppers around the globe throughout the 2010’s for a series of small but noticeable infractions, including some tone-deaf language from executives following stories of police brutality. During this time, Target execs attempted to appeal to all sides of the political spectrum. The company offered rainbow shirts and decorations for Pride Month, while also supporting police ventures with a forensic investigation service. It wasn’t until the 2020 slaying of George Floyd that Target began to aggressively pursue a pro-DEI corporate structure, with the company promising to increase its Black workforce by 20 percent, and take other notable steps to “advance racial equity.”
During the Biden presidency, Target became one of the loudest champions of DEI, with high-profile ad campaigns, investments and social media pledges designed to bring BIPOC and LGBTQ+ communities back into the stores – both as employees and as customers. In 2021, Target pledged to spend over $2 billion in collaborations with Black-owned businesses, and began working closely with independent retailers to stock their shelves with products from more than 500 Black-owned vendors. Target also delivered a pledge to provide $100 million in funding for nonprofits that support the Black community, as well as scholarships for low-income students to attend HBCUs. During this time, they were lauded by prominent civil rights groups and executives of color, and their numbers seemed to show growing success in multiple key demographics.
This made it a major surprise when Target abruptly announced an end to any and all diversity, equity and inclusion measures as soon as Trump allowed them to do so. Allusions to the advancement of Black employees were quickly scrubbed from the company’s corporate charter and website back in January, and spokespeople from Target expressed that they would be concluding all previously-mentioned efforts to support the Black community.
What Impact Has Target’s DEI Shift Had On Business?
It should come as no surprise that shoppers from around the nation have been boycotting Target since they stripped DEI from their mission statement. Both employees and shoppers of marginalized backgrounds feel betrayed by the company’s heel-turn, and have begun looking for partnerships with competitors. Twin Cities Pride, for instance, has dripped Target as the corporate sponsor of their Pride Festival, which is the largest pride event in Target’s headquarter state of Minnesota. The advocacy group, which has been partnering with Target for 18 years, has instead asked for supporters to fill that funding gap with private donations. Luckily, they were able to earn over $80,000 in just three brief days of fundraising, surpassing Target’s usual pledge by $30,000.
Black-owned retailers are also examining how a potential Target boycott could impact their business. Some sellers are pulling their products from the shelves, while others are asking customers to continue shopping at Target, while buying exclusively Black-owned brands. Actress Tabitha Brown falls into the latter category, as her CPG organic popcorn business and clothing line sells exclusively on Target shelves. She has asked her supporters to continue buying from her and other Black Target collaborators as they navigate the changing corporate landscape.
Costco, by contrast, has enjoyed a massive influx of new shoppers in the months since Trump announced his anti-DEI executive order. Target has consistently lost out to Costco for 13 consecutive weeks, reporting a 9 percent drop in foot traffic in February and a further 6.5 percent drop in March. Research suggests that April’s numbers have continued to fall quite short for the retailer, suggesting a sustained and continued downward trend. During the same time frame, Costco has enjoyed millions of new memberships, as arbiters of social justice have crowned the corporation a hero to the American public. For now, it’s hard to say what executives at Target are thinking. If the numbers continue trending downward, it seems impossible for the business to continue on their anti-DEI stance. The question for the back half of 2025 is, will Target stick to their guns and double down on Trump’s hard-right rhetoric, or circle back and try to recoup some of their shoppers with a wishy-washy apology?
