Walmart Makes Sweeping Cuts to DEI Initiatives

Walmart on Monday confirmed that it’s ending some of its diversity initiatives, removing some LGBTQ-related merchandise from its website, and winding down a nonprofit that funded programs for minorities, reports CNBC. The nation’s largest employer, which has about 1.6 million U.S. workers, joined a growing list of companies that have stepped back from diversity, equity and inclusion (DEI) efforts after feeling the heat from conservative activists. In a statement, Walmart said it is “willing to change alongside our associates and customers who represent all of America.”

Among the wide-ranging changes, Walmart will no longer allow third-party sellers to sell some LGBTQ-themed items on Walmart’s website, including items marketed to transgender youth such as chest binders, company spokeswoman Molly Blakeman said. The retail giant will no longer share data with the Human Rights Campaign, a nonprofit that tracks companies’ LGBTQ policies, or with other similar organizations.

Additionally, the big-box retailer is winding down the Center for Racial Equity, a nonprofit that Walmart started in 2020 after George Floyd’s murder sparked protests across the country. At the time, Walmart and the company’s foundation pledged $100 million over five years to fight systemic racism and create the center. Blakeman said Walmart will continue to award grants, disaster relief, and funding to events such as Pride parades, but with more guidelines on how funding can be used.

Over the past year, Walmart has phased out supplier diversity programs, which gave preferential financing to some groups, such as women and minorities, after the Supreme Court decision striking down affirmative action. It’s also moved away from using the term “diversity, equity and inclusion” or DEI in company documents, employee titles and employee resource groups. For example, its former chief diversity officer role is now called the chief belonging officer.

Total Retail's Take: Why are so many retailers pulling back on DEI? Some have also attributed changes to the U.S. Supreme Court’s decision last year that struck down affirmative action programs at colleges. Tractor Supply said in June it was eliminating DEI roles and stopping sponsorship of Pride festivals. Lowe’s, Ford, and Molson Coors have also walked back some of their equity and inclusion policies in recent months.

Recent changes at Walmart came on the heels of pressure from conservative activist Robby Starbuck, who threatened a consumer boycott of the retailer. Starbuck is a vocal DEI opponent who had also put heat on Tractor Supply. Walmart had conversations with Starbuck over the last week and already had some DEI-related changes underway, Blakeman said.

In a statement, Walmart said, “We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers and to be a Walmart for everyone.”

As one of the largest employers in the world, Walmart has a unique opportunity — and responsibility — to set the tone for corporate inclusivity and equity. Walmart's announcement will spur more conversation around where corporate America will take DEI initiatives in the coming years. In a blog post earlier this month, Michelle Bogan, founder and CEO of DEI consultancy Equity at Work, wrote, "Companies that were performative with their DEI work are using this as an opportunity to bow out. Performative work will not move the needle, so better to not do DEI work at all than just be performative. The rest are continuing to prioritize DEI, largely increasing their investment and spreading DEI accountability throughout their organizations."