What: Former EEOC Commissioner advocates for strategic DEI program refinement rather than elimination, emphasising legal compliance while maintaining effective inclusion practices.

Why it is important: As retailers navigate new federal guidelines and political pressures, the distinction between legal compliance and branding strategy becomes crucial for maintaining inclusive workplaces while mitigating risks.

Former EEOC Commissioner Chai Feldblum's guidance on DEI implementation arrives at a critical juncture for retailers, highlighting the difference between problematic practices and legally sound approaches to workplace inclusion. Her advocacy for a "refresh" rather than a "reboot" aligns with successful industry adaptations, particularly in distinguishing between quotas that create legal risks and aspirational goals based on qualified labor force analysis. The guidance specifically addresses key retail industry concerns, from affinity group management to pronoun policies, while emphasising the importance of maintaining anti-discrimination training. This practical approach to DEI implementation provides retailers with a framework for preserving inclusive practices while adapting to new political and legal pressures, suggesting that the focus should be on effective implementation rather than terminology. The emphasis on legal compliance while maintaining core inclusion objectives offers retailers a path forward in an increasingly complex regulatory environment.

IADS Notes: The retail industry's approach to DEI has undergone significant transformation since late 2024, as evidenced by contrasting strategies in maintaining inclusive practices while adapting terminology. In November 2024, Walmart pioneered this approach by removing explicit DEI language while preserving core practices, achieving strong market performance. By January 2025, the emergence of the FAIR framework (Fairness, Access, Inclusion, Representation) offered retailers a structured approach to balancing legal compliance with inclusion goals. This evolution continued through February 2025, when Victoria's Secret rebranded to "inclusion and belonging," while Amazon adopted "Inclusive eXperiences and Technology." These developments, culminating in April 2025's overwhelming shareholder rejection of anti-DEI proposals at Goldman Sachs and Levi's, demonstrate how retailers are successfully navigating the complex balance between legal compliance and effective inclusion practices.

Companies should seek a DEI ‘refresh,’ not a reboot, says former top EEOC official