Metro Weekly

Brands That Scale Back DEI Lose LGBTQ Customers

A survey of LGBTQ consumers finds they are less willing to spend money with companies perceived as hostile to diversity and LGBTQ rights.

Target Store - Photo: Nisarg Lakhmani via Dreamstime
Target Store – Photo: Nisarg Lakhmani via Dreamstime

A new survey from the Human Rights Campaign Foundation finds that LGBTQ consumers are reducing support for — and directing their spending away from — companies that have publicly rolled back diversity, equity, and inclusion initiatives in response to pressure from the Trump administration and conservative activists.

Among the companies that LGBTQ consumers are abandoning are Target, Walmart, Amazon, and Home Depot, all of which scaled back diversity initiatives in response to pressure from conservative activists, despite previously marketing themselves as supportive of LGBTQ inclusion.

Target faced significant backlash over its Pride-themed merchandise in 2023 and later scaled back its LGBTQ-related marketing efforts. Amazon has also faced criticism for allowing anti-LGBTQ groups to participate in its former AmazonSmile charitable giving program.

According to the survey, 71.5% of LGBTQ consumers reported buying fewer products from companies perceived as scaling back their commitment to inclusion, while 69.4% said they refuse to purchase products from those businesses at least some of the time.

It found that 69.5% of LGBTQ consumers reported increasing their spending with businesses they perceive as supportive, while 65% said they intentionally purchased products from brands viewed as pro-LGBTQ or committed to diversity.

Nearly 8 in 10 LGBTQ adults, or 79.3%, reported having favorable views of DEI initiatives, compared with only 53.4% of non-LGBTQ adults.

LGBTQ consumers are nearly twice as likely as non-LGBTQ consumers to intentionally support and increase spending with companies perceived as committed to inclusion.

The HRC Foundation noted that the survey’s findings are rooted in consumers’ perceptions of a company, rather than its full record, history of LGBTQ support, or internal policies. As such, businesses may have an opportunity to close the gap between their internal practices and public perceptions regarding LGBTQ inclusion.

For instance, Chick-fil-A was perceived by survey respondents as hostile to LGBTQ inclusion, despite softening its previously anti-LGBTQ image and drawing criticism from some conservatives for allegedly becoming too “woke.”

In contrast, Costco, Apple, Ben & Jerry’s, Delta, and Kroger were among the companies most closely associated with support for LGBTQ causes and DEI. Starbucks, Subaru, Levi’s, and Coca-Cola also ranked among the top 10 companies perceived as providing “authentic” support for LGBTQ inclusion.

Those positive perceptions persist despite reports that some Starbucks locations removed Pride decorations. Likewise, CEO Tim Cook’s $1 million donation to President Donald Trump’s inauguration does not appear to have significantly damaged Apple’s public perception.

According to CNBC, the National LGBT Chamber of Commerce estimates that LGBTQ consumers contribute more than $1.7 trillion to the U.S. economy.

HRC Foundation noted that LGBTQ consumers account for more than $3.9 trillion in global spending, underscoring the importance of clearly communicating a company’s commitment to LGBTQ inclusion.

“Consumers are rewarding companies they see stand by their values and turning away from those who retreat under pressure,” HRC President Kelley Robinson said in a statement responding to the survey’s findings. “This report isn’t a warning for corporations — it’s an opportunity and a reminder that LGBTQ+ consumers and our allies are ready to spend with you, work for you, and grow with you for decades to come.

“The data is clear: authenticity and consistency builds community trust with brands,” Robinson added. “Companies that embrace that playbook earn lasting loyalty, stronger reputations, and better long-term business results.”

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