Collins’ call for specificity underscores the stakes for brands navigating this cultural moment. As DEI rollbacks draw public ire, the impact is evident in headlines and hard metrics.
Retailers face backlash as DEI commitments waver
Target faced significant consumer backlash after rolling back its DEI efforts, with foot traffic declining for four consecutive months according to Placer.ai data.
"Target in particular faces a significant amount of backlash in rolling back its DEI efforts because in many ways Target was seen as an ally," said Collins. "For them to roll back their DEI efforts because of the pressure they're getting from the [Trump] administration or the social pressures in general felt like a betrayal."
This impact isn't merely anecdotal.
- Nearly one in five US adults have stopped purchasing from brands that changed their DEI approach, with that number rising to 40% among Gen Z consumers, according to a March 2025 survey from Ad Age and The Harris Poll.
- Meanwhile, companies that maintained their DEI commitments saw reputation scores rise by an average of 1.5 points in the Axios Harris Poll 100 rankings.
Costco benefits from consistency in values
While Target struggles, Costco has seen increased foot traffic by maintaining its DEI position and rebuffing pressure to follow other retailers in rolling back commitments.
- "Part of the reason Costco is benefiting so much is not just because it offers a viable alternative to Target, but also because it has a history of being really good on labor issues, it has a history of being really good about quality," said our analyst Paola Flores-Marquez.
This consistency creates what Collins calls "heart loyalty"—the strongest form of consumer attachment that transcends habit or rational decision-making.
"That level of commitment, people go, 'It's safe to shop here because it's always going to be congruent with my identity,'" said Collins.
Pride Month marketing becomes more muted
About two in five companies plan to reduce Pride-related engagements this year, with none expecting to increase them, according to Gravity Research. About 25% of corporate donors to New York City's Pride celebrations have canceled or reduced contributions.
This can be attributed to companies' lack of genuine conviction.
- "It became an opportunity to ride the zeitgeist, benefit from the zeitgeist in an effort to potentially drive commerce. And the minute it becomes inconvenient to do so, you back away," said Collins.
Many companies are balancing public silence with internal support, said Canaves.
"I think internally, they still have to nurture and support their employees, and you can't really afford to alienate or lose a large number or significant share of employees who are diverse," she said.
The danger of appealing to the "average" consumer
As retailers navigate these political waters, many are adopting more abstract language around inclusion, using terms like "togetherness" and "belonging" instead of explicit DEI terminology. However, this strategy of appealing to everyone by offending no one may be fundamentally flawed.
"[Appealing to the average consumer] is the worst strategy ever," Collins said. "The people who are most likely to move are the people who believe, and those people then enter the discourse on your behalf to convince the people that are less likely to move."
However, backtracking is worse than taking a stance, according to Flores-Marquez.
"Backtracking your stance means that you don't stand for anything, and then you've alienated the people who are already on your side and you have not gained anyone new because they already don't identify with you," she said.
For retailers, the message is clear: Consistency in values may be more important than trying to please everyone, especially as consumers vote with their wallets for brands that align with their identities.
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This article was prepared with the assistance of generative AI tools to support content organization, summarization, and drafting. All AI-generated contributions have been reviewed, fact-checked, and verified for accuracy and originality by EMARKETER editors. Any recommendations reflect EMARKETER’s research and human judgment.