Walmart, world’s biggest retailer, will curb diversity efforts

Michigan – Walmart is reversing course on diversity, equity and inclusion (DEI) initiatives, joining a growing list of US businesses retreating on DEI programmes targeted by conservative activists.

The world’s biggest retailer will no longer consider race and gender to boost diversity when granting supplier contracts, and stop collecting demographic data when assessing financing eligibility.

The most prominent company so far to pull back on diversity promises, Walmart on Nov 25 confirmed it would stop using the term “DEI” in official communications. It will also curb racial equity training for staff, stop participating in notable rankings by LGBTQ advocacy group the Human Rights Campaign, and review its support for Pride and other events.

The changes were made public after anti-DEI activist Robby Starbuck posted a social media video saying that he had threatened Walmart with a campaign to lead a customer boycott just days before Black Friday, one of the biggest holiday shopping events of the year. 

Mr Starbuck said he contacted public relations staff at the company last week asking that it pull its support from LGBTQ causes and other DEI initiatives. He promised to call on his 700,000 followers on X to boycott the retailer if it did not make the changes. A spokesperson for the company confirmed conversations with Mr Starbuck over recent days.

Growing backlash

The retailer said it would stop using “DEI” and instead focus on “belonging” and work on a respectful and supportive environment. It also confirmed it will review funding of all Pride events and monitor online merchants for what Mr Starbuck described as “sexual and/or transgender products marketed to children”, and remove items as necessary.

Walmart joins at least 10 other companies from Deere & Company to Boeing who have pulled back on their DEI commitments in recent months, as corporate America reconsiders diversity policies in the wake of the 2023 Supreme Court ruling banning affirmative action in college admissions. 

That decision raised questions about the legality of corporate diversity programmes, prompting many companies to quietly re-evaluate their efforts. The ruling also emboldened a slew of anti-DEI activists, who say the backlash will intensify under US President-elect Donald Trump.

Trump’s cadre of advisers includes several vocal critics of DEI, including billionaire Elon Musk, who often reposts Mr Starbuck’s social media attacks. Mr Stephen Miller, who Trump nominated for homeland security adviser and White House deputy chief of staff for policy, has sued companies for their DEI programmes and launched federal complaints alleging that these initiatives discriminate against white men. Last week, Republican Representative Nancy Mace filed a resolution that would prevent the first transgender member of the chamber from using the women’s restroom in the Capitol. BLOOMBERG