Retailers like Walmart and Target are facing challenges due to a fluctuating economy impacted by tariffs, layoffs, and a divisive political situation.
Companies are now concerned about social media boycotts affecting their business performance. Target faced backlash after ending its DEI program in January, leading to predictions of severe consequences by PR experts.
Walmart acknowledged the challenging environment in their 2025 annual report, mentioning the heightened scrutiny on diversity, equity, and inclusion initiatives which could lead to consumer boycotts and reputational harm.
Other retailers like Home Depot and Constellation Brands are also warning investors about the risks of upsetting consumers, highlighting the tightrope that corporate America is walking in addressing social issues amidst economic challenges.