5 days ago
Walmart and Target secretly ‘worried' over boycott as shopper fume over major policy overhauls
WALMART and Target are bracing for impact and quietly warning of consumer backlash as outrage brews over their changing policies.
The retail giants recently admitted in regulatory filings that they fear massive financial loss due to boycotts against the companies.
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Walmart and Target are among several popular retailers now flagging political firestorms around diversity and climate policies as potential business threats.
Shoppers have aimed at companies over their stances on hot-button social issues, with frustrations erupting on both sides of the political aisle, CNN reported.
'Strong opinions continue to be publicly expressed both for and against diversity, equity and inclusion and ESG initiatives,' Walmart said in its March annual report.
The company added that corporate positions are 'subject to heightened scrutiny from consumers, investors, advocacy groups and public figures, potentially leading to consumer boycotts, negative publicity campaigns, litigation and reputational harm.'
'BOYCOTT TARGET'
Target said it's been caught between "varied, and at times conflicting" expectations from customers, shareholders and staff.
'We have previously been unable to meet some of those conflicting expectations, which has led to negative publicity and adversely affected our reputation,' the company said.
The backlash erupted after Target pulled some LGBTQ-themed merchandise last June during Pride Month, citing threats to employees.
That decision sparked criticism from both conservatives, who launched a boycott, and LGBTQ advocates, who felt abandoned.
Target said some shoppers were also upset this year after it quietly ended parts of its DEI initiatives.
On January 24, Target responded by announcing plans to roll back on its DEI initiatives, including ending its program focused on aiding Black employees build their careers, boosting the experience of Black customers, and promoting Black-owned businesses in the wake of George Floyd's death in 2020.
Sales slumped in the most recent quarter, and the company pointed to consumer pushback over its handling of social issues.
HIGH COSTS AT WALMART
Customers lashed out at Walmart's skyrocketing costs following another week-long boycott in April.
When asked for comment, Walmart issued the same statement they gave out last month.
"As one of the largest corporate taxpayers in the country, not only do we pay our fair share, we are an economic force multiplier strengthening communities nationwide through job creation, supplier growth, and over $1.7 billion in cash and in-kind donations last year,'' a Walmart spokesperson told USA Today.
"We remain dedicated to earning the business of all Americans and giving our time and resources to causes that uplift and unite communities who rely on us every day."
Which companies have dumped DEI policies after Donald Trump's executive order?
Major brands have either ditched or are re-examining their DEI initiatives after Donald Trump cracked down at the federal level.
Goldman Sachs has retreated from DEI, by dropping a requirement that forced some clients to include women and members of minority groups on their board of directors.
Google has rescinded a goal in 2020 to increase representation of underrepresented groups among the company's leadership team by 30% within five years.
Amazon said it was halting some of its DEI programs, although it did not specify which ones.
Lowe's said the company was 'reviewing' its DEI programs.
Harley-Davidson said it does not have hiring quotas and would no longer have supplier diversity spending goals
During planned boycott days, protesters say they'll avoid shopping at Walmart stores, skip online purchases, and stop using Sam's Club and other Walmart-affiliated brands.
On Instagram, John Schwarz, head of The People's Union, urged shoppers to join the boycott, accusing Walmart of 'raising prices yet again after raking in record profits, dodging taxes, and fueling corporate greed.'
The wave of political pressure is forcing brands to walk a tightrope, especially under the Trump administration's crackdown on corporate DEI policies.
Republican officials have threatened legal action against companies with 'illegal' diversity programs, while activists like Robby Starbuck have fueled online outrage.
MORE BRANDS UNDER FIRE
Retailers like Home Depot and the parent company of Corona beer, Constellation Brands, have also started flagging DEI-related risks in investor documents.
'The heightened debate on DEI and climate, in particular, has driven the inclusion of these disclosures in the last few months,' said Matteo Tonello of The Conference Board.
USC risk management expert Kristen Jaconi said brands are stuck in a 'Catch-22.'
'Consumers may be dissatisfied if a company takes a particular position on a social issue or if a company takes no position at all,' Jaconi told CNN.
The Trump administration's stance is spooking other major brands as well, including Abercrombie & Fitch, Kroger and PVH Corp.
Historian Lawrence Glickman of Cornell University said companies are now on high alert.
'Often, boycotts catch companies by surprise,' he said. 'Recent boycotts have been successful enough that (companies) are worried about them.'
Other huge corporations such as Amazon, Google, Meta, and Walmart have similarly backtracked on the policies.
Walmart and Target didn't immediately respond to a request for comment by The U.S. Sun.
