Walmart (WMT) just avoided a major threat to its pockets after cutting out a slew of controversial workplace policies that have recently become main targets of conservative consumers.
The retail giant, which faced a 5% year-over-year increase in its U.S. net sales during the third quarter, was recently targeted by conservative activist Robby Starbuck for going “woke.”
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“Last week I told execs at @Walmart that I was doing a story on wokeness there. Instead we had productive conversations to find solutions,” said Starbuck in a tweet on Nov. 25.
Related: Lowe’s cuts back major policies amid woke blowback
Starbuck revealed that Walmart, the No. 1 private employer in the U.S., has committed to scaling back some of its commitments to diversity, equity, and inclusion, or DEI.
Walmart vows new commitments as it cuts DEI
Some changes include Walmart ceasing its participation in the Human Rights Campaign survey, which tracks LGBTQ+ corporate policies and practices. Funding for Pride and other events will also be reviewed to ensure that sexually inappropriate content directed at children isn’t being funded.
Walmart will also be removing transgender products that are marketed to children in its stores.
In addition, the retailer has opted to discontinue its racial equity training for employees and will evaluate its supplier diversity programs to ensure that they don’t provide “preferential treatment and benefits” to suppliers based on race, according to Starbuck.
The retail giant will also abandon its five-year commitment to expand its Racial Equity Center. According to Walmart’s website, the center was established in 2020 to “address the root causes of gaps in outcomes experienced by Black and African American people in education, health, finance and criminal justice systems.”
Walmart will also be retiring LatinX and DEI from its vocabulary.
“This is the biggest win yet for our movement to end wokeness in corporate America,” said Starbuck in a tweet.
In an emailed statement to TheStreet, a Walmart spokesperson claimed that the company is "willing to change" alongside its associates and customers.
“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,” said the spokesperson.
In response to Starbuck’s tweet, many applauded Walmart's changes, with some even claiming that they would give the retailer more of their business.
looks like I will be buying more from walmart and less from amazon 👍
— Gividen (@Indiana_Gividen) November 26, 2024
Good I will shop at Walmart again
— Cyann Bartlett (@cyannbartlett) November 26, 2024
I had stopped going along with friends
Walmart's move furthers a growing business trend
The move from Walmart comes after retailers such as Lowe’s, Harley Davidson, Tractor Supply, etc., also cut their DEI policies this year amid growing criticism from consumers for “going woke.”
Many companies have been quick to cut their DEI policies due to fears of facing massive boycotts from consumers. In 2023, Bud Light became a major example of how conservative consumers can drain a company’s pockets over politics.
Related: Harley-Davidson makes a tough decision amid ‘woke’ outrage
In April last year, Bud Light experienced a significant dip in sales and revenue after it featured Dylan Mulvaney, a transgender social media influencer, in a social media campaign promoting a $15,000 giveaway.
Consumers took issue with Mulvaney’s advocacy for transgender rights and criticized Bud Light for going “woke.” The beer brand then faced a boycott from consumers, backed by celebrities such as Kid Rock and Travis Tritt.
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Bud Light was reportedly being sold for less than water as the boycott increased in popularity, and certain production plants that crafted the beer had to be shut down as sales began to shrink.
Walmart will most likely not be the last major retailer to decide to cut its DEI policies. According to a recent analysis from Bloomberg, more than two dozen public companies, including JetBlue and Molson Coors, mentioned DEI as a risk factor in their securities filings.
The companies claimed that DEI could cause legal and reputational harm if taken too lightly or too seriously, especially after the U.S. Supreme Court ended affirmative action in college admissions in June 2023.
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