What: Companies that genuinely embody their stated values are building stronger communities and customer relationships, while those retreating from commitments face significant backlash.

Why it is important: The contrasting outcomes between companies maintaining versus retreating from their values highlights a fundamental shift in how brand authenticity impacts business performance.

The relationship between brand values and business success has reached a critical juncture, as demonstrated by Target's recent experience with declining store traffic following changes to its DEI policies. This shift reflects a broader transformation in retail, where authentic commitment to values has become essential for building lasting customer relationships. Brands like Topicals have successfully created passionate customer communities by genuinely integrating their beliefs across all aspects of operations, from product development to philanthropic initiatives. Their approach to skin positivity and inclusivity has resulted in measurable benefits, including 53% higher purchase frequency among community members. The evolution extends to established retailers like Aerie, which has adapted its body-positivity message based on community feedback while maintaining core values through initiatives like the Aerie Real Foundation. This demonstrates how brands can evolve alongside their communities while staying true to fundamental beliefs. The key lies in authentic implementation – companies must "walk the walk" by integrating their stated values across their entire business operation.

IADS Notes: The retail industry's evolution toward authentic community building through shared values is evident across multiple sectors. In April 2025, department stores demonstrated this shift by emphasising cultural programming and community-driven experiences, while earlier in January 2025, retailers like Coach successfully transformed physical spaces into community-focused "third places". This trend gained momentum as traditional retail models proved insufficient, with brands recognising that authentic community engagement requires more than just attractive spaces - it demands genuine alignment with customer values and beliefs. The success of this approach is particularly visible in luxury retail, where brands maintained their commitment to inclusive values despite market pressures. These developments validate the article's emphasis on authentically embodying brand values, showing how retailers who genuinely integrate their stated beliefs across operations can build lasting communities and drive business success.

How brands build genuine communities