Walmart (WMT) is retreating from its DEI (diversity, equity, and inclusion) policies ahead of Black Friday, as activist pressure increases. The company is one of the largest American retailers to join the list of corporations who are rolling back their DEI policies as conservative activist Robby Starbuck threatens to publicize their “wokeness.”
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Starbuck took the credit for Walmart’s bold step of becoming anti-DEI soon. On Monday, Starbuck posted a video on social media site X stating that he had held talks with Walmart recently. He said he planned to criticize Walmart’s diversity and LGBTQ-themed items offered on its website right ahead of Black Friday, which could draw a huge backlash. Black Friday is one of the biggest shopping days for retailers, generating millions in sales in just one day.
Here’s How Walmart Will Revert the DEI Policies
Walmart boasts over 2 million employees worldwide and has strived to remain neutral on social issues such as those included in the DEI policies. The company will stop using DEI terms in official documents and also stop sharing the data on its LGBTQ policies with the Human Rights Campaign. In a statement, Walmart said that some of the DEI-related changes were already being implemented. The company added, “We’ve been on a journey and know we aren’t perfect.”
Walmart said it will end its $100 million funded non-profit organization, Center for Racial Equity, that offers assistance to suppliers owned by minorities, women, veterans, or LGBTQ communities. Walmart will disengage the fund after its current five-year run ends in 2025. Additionally, Walmart will stop third-party sellers from marketing some LGBTQ-focused items on its site and transgender items, such as chest fasteners, aimed at minors
Corporations are especially worried that the new administration under President-elect Donald Trump will be even stricter about DEI policies. Other companies that have rolled back their DEI policies under pressure from Starbuck include Ford (F), Lowe’s (LOW), Deere & Co. (DE), and Boeing (BA).
Is Walmart Stock a Buy or Hold?
Following Walmart’s solid Q3 FY25 beat, most of the analysts reiterated their Buy views on the stock while some even lifted their price targets. On TipRanks, WMT stock commands a Strong Buy consensus rating based on 26 Buys and one Hold rating. Also, the average Walmart price target of $93.18 implies 4.1% upside potential from current levels. Meanwhile, WMT shares have gained nearly 72% year-to-date.
