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Target Joins Roster of Retailers Scaling Back DEI in Effort to ‘Stay in Step with Evolving External Landscape’

Target store exterior
Image courtesy Target

Target has joined the growing list of retailers and other institutions, including the federal government, pulling back on a number of its diversity, equity and inclusion (DEI) initiatives.

Target didn’t call the move a “pullback”; instead the retailer’s announcement was carefully framed to indicate that it was simply wrapping up a number of ongoing efforts and refocusing its resources toward broader targets. However, Target’s moves are in line with those at companies that have been more explicit in their intentions, including Tractor SupplyWalmart and Lowe’s.

Specifically, Target said that it was:

  • “Concluding” its three-year DEI goals, which were initially put in place during the pandemic;
  • Pulling out of all external diversity-focused surveys, including HRC’s Corporate Equality Index;
  • Completing its Racial Equity Action and Change (REACH) initiatives in 2025 “as planned”; and
  • “Evolving” its Supplier Diversity team — which was focused on carrying more products from Black- or minority-owned businesses — to become the Supplier Engagement team in order to “better reflect our inclusive global procurement process across a broad range of suppliers, including increasing our focus on small businesses.”

The retailer also said that its employee resource groups would be focused on development and mentorship for everyone, regardless of background, and it plans to evaluate its corporate partnerships to ensure all are “directly connected to our roadmap for growth.”

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“We remain focused on driving our business by creating a sense of belonging for our team, guests and communities through a commitment to inclusion,” reads Target’s formal announcement of the changes. “Belonging for all is an essential part of our team and culture, helping fuel consumer relevance and business results. In every area of our business, we are constantly listening, learning and adjusting to set ourselves up for long-term success.” 

“Many years of data, insights, listening and learning have been shaping this next chapter in our strategy,” said Kiera Fernandez, Chief Community Impact and Equity Officer at Target in a memo sent to staff on Friday, Jan. 24 that was viewed by CNBC. “And 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 — all in service of driving Target’s growth and winning together.”

In addition to a host of other corporations, the “external landscape” that Fernandez mentions now includes the U.S. government — one of President Trump’s first moves upon taking office last week was to put a stop to all DEI initiatives in the federal government. One notable outlier has been Costco, which earlier this month rejected a shareholder proposal to rethink its DEI efforts.

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