What:Fashion brands and retailers are rebranding or rolling back diversity, equity, and inclusion (DEI) programmes in response to political pressures and social backlash.

Why it is important: This pivot raises questions about corporate commitments to inclusivity, with potential impacts on brand founders from marginalised communities, workplace culture, and consumer trust, as companies risk alienating diverse perspectives and sacrificing long-term competitiveness.

In the wake of executive orders issued by President Donald Trump targeting corporate DEI initiatives, major companies like Target and Walmart have restructured or scaled back their diversity efforts. These moves reflect a broader trend in corporate America to navigate political and social pressures by reframing inclusivity efforts as “for everyone” while avoiding terms like DEI. However, critics worry this shift could legitimise workplace discrimination and hinder progress made since 2020. Some businesses, including Apple, Costco, and fashion brands like Glossier, have reaffirmed their DEI commitments, recognising the importance of tangible actions beyond public statements. Black-owned beauty brands like Chéribé and The Honey Pot, while benefiting from retailer partnerships, express concerns over the rollback’s implications. Experts caution that companies abandoning DEI risk losing diverse talent and alienating global consumers, potentially stalling innovation. Moving forward, scrutiny will focus on whether companies maintain meaningful inclusivity efforts despite foregoing DEI terminology.

IADS Notes: The retail industry's approach to DEI has undergone a significant transformation since late 2024. Walmart led the change in November 2024 by maintaining inclusion practices whilst removing explicit DEI language, achieving its strongest market performance since 1998. Target's recent announcement follows Amazon's January 2025 rebranding of its initiatives as "Inclusive eXperiences and Technology". The contrasting approaches are particularly evident in the luxury sector, where brands have maintained their DEI commitments despite market pressures. The emergence of the FAIR framework (Fairness, Access, Inclusion, and Representation) in early 2025 offers retailers a new way to balance inclusive practices with business performance, demonstrating how the industry is adapting to complex political and social pressures.

Can fashion be inclusive without saying ‘DEI’?